Quick Reference Guide
Internal Audit has documented the following miscellaneous procedures as a quick reference for departments. They represent university policies or best practices that Internal Audit believes will create good internal controls.
This is not an all-inclusive list of all university procedures and, at any time, these procedures may change. Contact the department listed if more detail is needed regarding current policies and procedures, or Internal Audit at extension 7082.
Change Funds
Departments should contact Contracting and Purchasing Services to obtain appropriate change fund authorization. Once a change fund is established, a supervisor should periodically perform surprise cash counts to ensure the balance in the fund is always maintained.
Check and Cash Handling
The department should establish written policies and procedures for processing cash receipts.
Cash receipts must be processed throughStudent Account Services and University Billing(SASUB).
Departments occasionally receive cash and checks directly from the payee. When this occurs, contact SASUB and/or Accounting Services for guidance. Internal Audit also has a guidance sheet that may be requested from intaudit@cmich.edu.
Compensatory Time
Please see the University Employment document for information or contact Payroll with specific questions and/or concerns.
Contracting Authority
Anyone signing contracts must have the proper authority. The Office of the Vice President of Finance and Administrative Services maintains a list of all individuals who have been delegated the authority to sign contracts on the university's behalf. The list can be obtained through Contracting and Purchasing Services.
Equipment
Please refer to Fixed Assets through Contracting and Purchasing Services for questions and/or concerns.
Fees
Please refer to the Financial Planning and Budgets Office for detailed information.
Gifts
Please refer to University Advancement for specific questions and/or concerns.
Independent Contractor
An independent contractor questionnaire must be submitted to Human Resources before the service of an individual (sole proprietor) is considered for hiring as an independent contractor. It must be completed even in those cases where payment is to be made to a business name rather than to the individual.
If the individual qualifies as an independent contractor, then the department will receive a copy of an independent contractor agreement which should be completed and signed by an individual with contracting authority and submitted along with the copy of the questionnaire to Payable Accounting at the time payment is to be processed. The independent contractor information is available from Contracting & Purchasing Services.
If it is determined that the individual should be processed as an employee rather than an independent contractor, then the necessary employment appointment forms should be processed through the normal channels. Contact Human Resources.
Mailroom, Phone, Fax and Copier Usage
Mailroom, phone, fax, and copier charges should be reviewed for reasonableness. Personal use of any university resources should be reimbursed.
Password Security
Please review the Office of Information Technology article regarding suggestions for passwords, questions and/or concerns.
Reconciling Department Accounts
Reconciling the department's accounts provides a good internal control environment. Please refer to Financial Services and Reporting for guidance when reconciling departments accounts. For additional information, you may request a guidance document from Internal Audit at intaudit@cmich.edu.
Record Retention
Information Technology, General Counsel and Clarke Historical Library - overseers of the CMU archives - have partnered to construct a new CMU Record Retention Schedule that provides record management advice driven by current legal and compliance realities. The new schedule and an FAQ can be found on the Record Management website.
Scholarships
All scholarships should be established through the Office of Scholarships and Financial Aid. The scholarship accounts should be monitored by the department.
Security Systems
CMU Police should be informed of any security system installed on campus. Keys or codes should be given only to those employees who need them to perform their job responsibilities. However, at least two people (one serving as backup) should have the keys or codes. If an employee who knows the code or has a key to the security system leaves the employ of the department, the code should be changed or the key returned.
Segregation of Duties
Though more difficult to accomplish in small departments, segregation of duties is possible in any office containing two or more people. Departments should review revenue, payroll, expenditure, and credit card processing to ensure adequate controls are in place. Please refer to the Office of Internal Audit for key internal control activities.
Transfer of Funds
Transfer of funds should be done according to procedures documented in Accounting Services' Policies and Guidelines.
Travel
Per university policy, all employee reimbursement forms must be approved by someone administratively senior to the individual seeking reimbursement. It is a good practice to have travel approved prior to the travel occurring in order to provide proper authorization over travel expenditures.