COUNTY OF HENRICO

RICHMOND, VA
DETAILED AUDIT STEPS

PURPOSE
TO DOCUMENT DETAILED AUDIT TESTING STEPS FOR GENERAL SERVICES EXPENDITURES

SOURCE
COUNTY OF HENRICO, VIRGINIA
INTERNAL AUDIT OFFICE
GENERAL SERVICES EXPENDITURES AUDIT #01-07
WEBSITE http://www.co.henrico.va.us/audit/

PREPARED BY
JUDY A. DAVIS POORE
SENIOR INTERNAL AUDITOR

INIT STEP DESCRIPTION

SECTION H. STATISTICAL DATA

PURPOSE: TO DOCUMENT AND ANALYZE STATISTICAL

INFORMATION FOR GENERAL SERVICES EXPENDITURES.

H.1 PREPARE A SECTION INDEX.

H.2 PREPARE A SECTION CONCLUSION.

H.3 DOCUMENT AN EVALUATION OF EXPENDITURES TO

DETERMINE THE EXACT AUDIT SCOPE.

H.4 DOCUMENT EXPENDITURES EACH MONTH FOR EACH

OBJECT CODE IN GENERAL SERVICES.

H.5 DOCUMENT AN EVALUATION OF SPECIFIC INDEX CODES

FOR UTILIZATION OF IDT AND NEGATIVE EXPENDITURES.
THIS INFORMATION WILL BE PASSED ALONG TO ASSIST
WITH THE IDT AUDIT SCHEDULED FOR 2002.

H.6 USING THE FAMIS OPERATING FILE, DOWNLOAD INDEX

TOTALS BY DEPARTMENT AND FY. COMPARE THIS TOTAL
TO THE INFORMATION DOWNLOAD MONTHLY FROM FAMIS
AND COMPILED INTO A TRANSACTIONAL DATABASE.
REVIEW FAMIS REPORTS AND UPDATE THE
TRANSACTIONAL DATABASE TO OBTAIN FULL AGREEMENT
TO THE OPERATING FILE TOTALS.

H.7 USING ACL ANALYZE GENERAL SERVICES EXPENDITURES

BY:
INIT STEP DESCRIPTION
- ENTIRE AGENCY
- BY INDEX 121004-121301-122002-122010-122309-122606-
122622-78056-782342-782391
- BY VOUCHER TYPE – VA – VE – VN – VT
- BY NEGATIVE BALANCE ACCOUNTS – INDEX 121301
AND OBJECT CODES 211-220-514 AND INDEX 12010 AND
OBJECT CODE 911
- BY 800 OBJECT CODE

H.8 APPLY BENFORD’S LAW TO THE GROUP OF VE AND VN

DOCUMENTS, EXCLUDING NEGATIVE AMOUNTS AND
AMOUNT BELOW $9.99.

H.9 DOCUMENT SAMPLING METHODS.

SECTION I. FOLLOW UP

PURPOSE: TO FOLLOW UP ON PRIOR OPEN AUDIT

RECOMMENDATIONS RELATED TO GENERAL SERVICES
EXPENDITURES.

I.1 PREPARE A SECTION INDEX.

I.2 PREPARE A SECTION CONCLUSION.

I.3 DISCUSS STATUS OF OPEN AUDIT RECOMMENDATIONS WITH

GENERAL SERVICES. IF THE RECOMMENDATION IS CLOSED,
INCLUDE AS COMMENDATION. IF THE RECOMMENDATION
IS OPEN, DOCUMENT IN A DISCUSSION ISSUE.

SECTION J. EXPENDITURE TESTING – ENCUMBERED

TRANSACTIONS

OBJECTIVE: TO TEST RANDOMLY SELECTED PURCHASE ORDER

PAYMENTS FOR PROPER PROCUREMENT, CLASSIFICATION,
DOCUMENTATION, ACCOUNTABILITY, AND PROPRIETY.

J.1 PREPARE A SECTION INDEX.

J.2 PREPARE A SECTION CONCLUSION.

J.3 WITH ACL SELECT A RANDOM SAMPLE

J.4 PERFORM THE FOLLOWING TEST FOR EACH RANDOMLY

SELECTED ENCUMBERED PAYMENT TRANSACTION:
INIT STEP DESCRIPTION

A VERIFY PROCUREMENT MADE IN ACCORDANCE WITH

APPLICABLE POLICIES AND PROCEDURES.

B CONFIRM EXISTENCE OF VENDOR INVOICE OR OTHER

SUPPORTING DOCUMENTATION ATTACHED TO
ACCOUNTING RECEIVING REPORT.

C COMPARE AND AGREE THE VENDOR NAME AND

AMOUNT LISTED ON THE SUPPORTING
DOCUMENTATION TO CORRESPONDING PURCHASE
ORDER INFORMATION.

D RECALCULATE AND AGREE PAYMENT AMOUNT.

E VERIFY THAT THE AGENCY SELECTED THE CORRECT

OBJECT CODE.

F VERIFY THE VE WAS SIGNED AND DATED BY AN

INDIVIDUAL DESIGNATED BY THE AGENCY ON THE
AUTHORIZED SIGNATURE FORM.

G ENSURE PROMPT PAYMENT OF THE VENDOR INVOICE

DEFINED AS THE DUE DATE OR IF NO DUE DATE THAN
NOT MORE THAN 45 DAYS FROM THE INVOICE DATE.

H DETERMINE WHETHER THE INVOICE WAS MARKED AS

TO INDICATE REVIEW BY THE AGENCY.

I DETERMINE WHETHER THE INVOICE WAS DATE

STAMPED.

J.5 EVALUATE THE RESULTS. COMPARE ITEMS TESTED TO

BENFORD’S LAW. DETERMINE THE NEED TO TEST
ADDITIONAL ITEMS.

SECTION K. EXPENDITURE TESTING – NON-ENCUMBERED

TRANSACTIONS

OBJECTIVE: TO TEST RANDOMLY SELECTED NON-ENCUMBERED

PAYMENTS FOR PROPER PROCUREMENT, CLASSIFICATION,
DOCUMENTATION, ACCOUNTABILITY, AND PROPRIETY.

K.1 PREPARE A SECTION INDEX.

INIT STEP DESCRIPTION
K.2 PREPARE A SECTION CONCLUSION.

K.3 WITH ACL SELECT A RANDOM SAMPLE.

K.4 PERFORM THE FOLLOWING TEST FOR EACH RANDOMLY

SELECTED NON-ENCUMBERED PAYMENT TRANSACTION:

A VERIFY PROCUREMENT MADE IN ACCORDANCE WITH

APPLICABLE POLICIES AND PROCEDURES.

B CONFIRM EXISTENCE OF VENDOR INVOICE OR OTHER

SUPPORTING DOCUMENTATION ATTACHED TO
ACCOUNTING RECEIVING REPORT.

C COMPARE AND AGREE THE VENDOR NAME AND

AMOUNT LISTED ON THE SUPPORTING
DOCUMENTATION.

D RECALCULATE AND AGREE PAYMENT AMOUNT.

E VERIFY THAT THE AGENCY SELECTED THE CORRECT

OBJECT CODE.

F ENSURE THAT INDIVIDUALS RECEIVING GOODS OR

SERVICES HAVE SIGNED AND DATED THE VENDOR
INVOICE AND/OR PACKING SLIP TO DOCUMENT
RECEIPT AND TO CONFIRM THE ACCURACY AND
COMPLETENESS OF AMOUNTS BILLED.

G ENSURE PROMPT PAYMENT OF THE VENDOR INVOICE

DEFINED AS THE DUE DATE OR IF NO DUE DATE THAN
NOT MORE THAN 45 DAYS FROM THE INVOICE DATE.

H VERIFY THE NEI WAS SIGNED AND DATED BY AN

INDIVIDUAL DESIGNATED BY THE AGENCY ON THE
AUTHORIZED SIGNATURE FORM.

I VERIFY AGENCY SELECTED THE CORRECT PAYMENT

CATEGORY.

K.5 EVALUATE THE RESULTS. COMPARE ITEMS TESTED TO

BENFORD'S LAW. DETERMINE THE NEED TO TEST
ADDITIONAL ITEMS.

SECTION L. EXPENDITURE TESTING – TRAVEL

INIT STEP DESCRIPTION

OBJECTIVE: TO TEST RANDOMLY SELECTED TRAVEL

EXPENDITURES FOR COMPLETENESS AND ACCURACY AND
COMPLIANCE WITH COUNTY POLICIES AND PROCEDURES.

L.1 PREPARE A SECTION INDEX.

L.2 PREPARE A SECTION CONCLUSION.

L.3 SELECT A SAMPLE OF TWO TRAVEL VOUCHERS.

L.4 PERFORM THE FOLLOWING FOR EACH TRAVEL VOUCHER:

A. VERIFY TRAVEL EXPENDITURE WAS PROPERLY

APPROVED.

B. CONFIRM THE EXISTENCE OF A VENDOR INVOICE OR

OTHER APPROPRIATE SUPPORTING DOCUMENTATION
FOR ANY NEI PRE-PAYMENTS LISTED ON THE TRAVEL
VOUCHER FORM.

C. DETERMINE IF TRAVEL FORMS AND RECEIPTS WERE

SUBMITTED TO FINANCE-ACCOUNTING WITHIN 14
CALENDAR DAYS OF ACTUAL RETURN DATE.

D. DETERMINE THAT TRAVEL VOUCHER AGREES TO

SUPPORTING DOCUMENTATION, IN ACCORDANCE
WITH THE TRAVEL POLICY.

SECTION M. EXPENDITURES – PERSONNEL

OBJECTIVE: TO VERIFY THAT TIME REPORTING TRANSACTIONS,

INCLUDING OVERTIME HOURS, WERE PROPERLY APPROVED,
RECORDED, AND CALCULATED IN ACCORDANCE WITH APPLICABLE
PERSONNEL RULES AND REGULATIONS.

M.1 PREPARE A SECTION INDEX.

M.2 PREPARE A SECTION CONCLUSION.

M.3 DOCUMENT RANDOM SAMPLE SELECTION.

M.4 TEST EACH PAYPERIOD FOR THE FOLLOWING:

A VERIFY HOURS RECORDED ARE SUPPORTED BY A

INIT STEP DESCRIPTION
PROPERLY COMPLETED WORK/LEAVE REQUEST FORM
OR TIMESHEET.

B FOR OVERTIME HOURS, RECALCULATE PAY FOR HOURS

OF OVERTIME FOR PROPER AMOUNT.

C DETERMINE IF THE TOT SHEET TOTALS AGREE TO

AGGREGATE TOTAL OF CORRESPONDING HOURS AS
REPORTED ON WORK/LEAVE REQUEST FORMS OR
TIMESHEET.

D REVIEW TOT SHEET MAINTAINED IN FINANCE-PAYROLL

OFFICE FILES AND CONFIRM DOCUMENTED APPROVED
BY AN AUTHORIZED INDIVIDUAL.

E REVIEW CHECK PICK UP LOG MAINTAINED BY

FINANCE-PAYROLL OFFICE AND DETERMINE WHETHER
THE PERSON PICKING UP THE CHECKS IS AUTHORIZED
AND ALSO IS NOT THE TIME PREPARER.

M.5 SCHEDULE TIME OF THE DIRECTOR OF GENERAL SERVICES

FOR THE AUDIT PERIOD. DOCUMENT WHETHER THE TIME
WAS AUTHORIZED. DOCUMENT COMMUNICATIONS
CONCERNING APPROVAL OF DIRECTOR’S TIME RECORDS.