PAP.10.5.030 Best Management Practices

The following internal controls are recognized as best management practices, and although conditioned upon the number of employees, will be adhered to whenever possible:

(a) No person will have complete control over all phases of any significant transaction.

(b) Whenever possible, the flow of work will be from one employee to another so that the work of the second, without duplicating that of the first, provides a check upon the work of the first employee.

(c) Responsibilities in the fiscal department will be clearly established and followed as closely as possible.

(d) Record keeping will be separated from operations or the handling and custody of assets, including:

(1) The function of receiving cash will be centralized in one person, who will not be concerned in any way with approving or certifying vouchers, acting as petty cash cashier, preparing deposits, making disbursements, or keeping accounting records; and

(2) In receiving cash through the mail, the person responsible for opening the envelopes will immediately restrict with a tribal endorsement stamp all incoming checks and other negotiable instruments; these along with other cash received will be logged and listed in duplicate before forwarding the receipts to accounting for deposits to the bank.

(e) The following will be adhered to when handling cash:

(1) All cash receipts will be deposited intact and for the full amount received; and

(2) All collections will be deposited as soon as possible, preferably the day received.

(f) Collections and all other funds held within an office pending regular deposit will be restrictively endorsed. Petty cash funds and all other funds will be kept under complete control and under proper safeguards; preferably in a fire-resistant combination safe or safe cabinet.

(g) Uncollectible items and related documents will not be handled by the person making up deposits or by the person handling accounts receivable.

(h) If possible, persons preparing payrolls or time reporting records will not handle the related pay checks.

(i) Bank statements will be reconciled promptly to the formal accounting records and the reconciliation reviewed and approved by the Chief Financial Officer.

(j) The number of bank accounts and inter-bank transfers will be kept to a minimum.

(k) The following will be adhered to when issuing checks:

(1) Checks will not be issued to "cash" or "bearer;"

(2) Check signers will not sign blank checks; and

(3) Records of void checks will be kept. When possible the actual void check will be stamped void and filed.

If required, a replacement check will be issued following the process set forth in the Subchapter PAP.10.13 of this manual. When the actual check is not available and the check is for more than $15, a stop payment will be issued.