POLICY No. BAA-O01

 

INTERNAL POLICY AND PROCEDURE

 

 

TITLE:

Procedures for Reconciling Movable Property per

Property Control to Delgado’s Financial System

 

EFFECTIVE DATE

:

 

September 15, 2002

 

CANCELLATION:

None

 

DIVISION:

BUSINESS AND ADMINISTRATIVE AFFAIRS (BAA)

  

 

CATEGORY:

Property Control (O)

 

 

RESPONSIBLE

DEPARTMENT:

Controller’s Office

 

 

 

POLICY STATEMENT

 

Good internal controls include adequate segregation of duties so that different

employees authorize and record transactions and have physical custody of assets.

 

 

PROCEDURES & SPECIFIC INFORMATION

 

1. Purpose:

To document established procedures to ensure proper reconciliation of

Property Control Records to Financial Records (purchases).

 

2. Scope and Authority:

This issuance applies to all employees of Delgado Community College

responsible for Property Control (tagging, maintenance of inventory and

reporting to the LPAA) and employees of the Controller’s Office responsible

for tracking purchases of movable property (comparing payments to tagged

items and identifying items tagged but not paid and vice versa.)

 

3. Procedures:

A.

Data Base Maintenance

– A database has been established and is

accessible to Property Control and the Accounts Payable Departments.

The maintenance of this database is the responsibility of both the above

departments. The following procedures are effective immediately:

 

 

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Internal Policy and Procedure BA-O01 (Page 2)

 

1.

When Property Control is notified and/or receives movable

property with a value of $1,000 or greater, a tag number must be

assigned and placed on the property no later than 60-days. At the

point a tag number is assigned, the database must be updated

with the tag number, P.O. Number, P.O. value of tagged item and

the date physically tagged

. Property Control cannot enter this

item into the LPAA System until Accounts Payable completes

what was paid in Step A.2 below (P.O. price may be more/less

than actually paid).

Once this is done the value paid must be

input into the LPAA System by Property Control

. This is a

continuous process.

 

2. Every Friday Accounts Payable will access the database and

update the Financial Information (i.e. P.O. Number, Paid amount).

If the paid amount is different from the Property Control P.O.

Value a reconciliation is required between the two. If there are

items paid in the Financial System but do not appear in the

Database as tagged items, they are listed and Property Control

must investigate to determine where the property is and have the

item tagged. This is the notification that there is property that we

have paid for that Property Control has not tagged.

 

B.

Formal Reconciliation

– A formal reconciliation of the Property Control

System and the Financial System will be done no less than every six

months.

This will detail any reconciling items between the two and

identify both property that has been purchased/received but not

tagged and property received/tagged but not paid for.

This Formal

reconciliation will be done not less than semi-annually.

 

 

  

 

By: Controller