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Department of the Treasury
INTERNAL ACCOUNTING CONTROLS

NO: 95-11-OMB

ORIGINATING AGENCY: OFFICE OF MANAGEMENT AND BUDGET

EFF DATE: IMMEDIATELY

EXP DATE: INDEFINITE

SUPERSEDES: NONE

SUBJECT: INTERNAL ACCOUNTING CONTROLS

ATTENTION: ASSISTANT COMMISSIONERS AND DIRECTORS OF ADMINISTRATION

FOR INFORMATION CONTACT: KATHY A STEEPY, MANAGER
ACCOUNTING BUREAU
PHONE: 609-984-5216

PURPOSE

To ensure that proper internal controls over NJCFS on-line approvals exist,
and to establish the responsibility for the filing and retention of supporting
documentation for those approvals. The attached listing of transactions is
covered by this Circular Letter.

INTERNAL CONTROLS

A basic element of internal control is the SEGREGATION OF DUTIES. A review of
security profiles indicates that there are many individuals with all three
levels of approval who also have the ability to enter or change transactions
on the system. This authority enables these individuals to enter or change
and approve transactions without supervisory approval. This practice will no
longer be considered acceptable.

POLICY

To achieve a better level of internal control, it will no longer be acceptable
for one person to be able to apply all three levels of approval.

PROCEDURE

Each Department must review any security profile that has three levels of
approval.

The Department must then submit by April 3, 1995 a revised security profile
reassigning to another person at least one level of approval to:

Transaction Analysis & Approval Section
NJCFS Security
CN-221
Trenton, NJ 08625

EXEMPTIONS

To request an exemption from this policy, please submit written documentation

to OMB by April 3, 1995 justifying the need to retain for certain individuals
three levels of approval and a copy of Departmental Internal Control
Procedures to:

Francis C. Gatti, Jr.
Assistant Director, Financial Management
Office of Management and Budget (OMB)
Department of the Treasury
CN-221
Trenton, NJ 08625

Any person who is granted this exemption to apply three levels of approval to
a transaction will not be allowed to enter or change that transaction. This
documentation must include the procedures utilized to ensure that effective
checks and balances exist. The procedures must require that any transaction
approved by an individual, who has three levels of approval, must be
supported by a paper document which contains at least one authorized signature
other than the person who has three levels of approval. These documents
must be maintained by the Department.

DOCUMENTATION AND RETENTION PERIOD

The Department shall maintain supporting documentation, along with all other
CFS documentation, in a logical sequence in a secure environment for a period
of seven years.

TRANSACTIONS COVERED BY CIRCULAR LETTER 95-11

Accounting Bureau Payment Vouchers - A1
Agency Contract Order - A0
Accounting Bureau Payment Vouchers - AV
Alternate Cash Receipt - C1
Cash Receipt - CR
DBC Order - DO
Expenditure Modification - EM
Grant/Loan Order - GO
Invoice - IN
Alternate Journal Voucher - J1
Journal Voucher - JV
Quick Invoice - QI
Quick Receipt - QR
Quick Warrant - RA
DBC Requisition - RD
Travel Authorization - TE
Travel Authorization - Training - TH
Travel Payment Voucher - TV
Using Agency Payment Voucher - U1
Using Agency Payment Vouchers - UA
Revenue Modification - RM
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