Issue link: http://read.uberflip.com/i/546249
22 IGSA | 2015 147713GroAll13 1 7/10/14 4:28 PM 2015 YEARBOOK • recording function and preparing source documents (e.g. printing checks). • custody of asset, whether directly or indirectly (e.g. receiving payments in the mail or mailing payments to vendors). • reconciliation or audit (e.g. monthly bank reconciliations). 2. Bank Reconciliations and Control of Bank Statements: Monthly bank reconciliations should be performed on all cash accounts by someone who does not make bank deposits or initiate cash disbursements. This reconciliation should be performed before the end of the month in which the bank statement is received. All bank reconciliation should also be reviewed by a member of management to ensure that correct balances were used and that there are no unusual reconciling items. A member of management should also open the monthly bank statement and review it for any unusual items (e.g. checks with one signature) prior to giving the statement to the individual performing the reconciliation. 3. Petty Cash Reconciliation: The company should keep all petty cash in a secure lockbox. A simple log should be maintained with a record of when petty cash is disbursed, who petty cash was distributed to, and what the petty cash was used for. The log should also show when petty cash is added to the lockbox, and a reconciliation should be performed between checks on the bank statement made out to petty cash and deposits recorded on the petty cash log 4. Administrative Rights, Password, and Closing Dates in Accounting Software: Management's login should be the only login in your accounting system that has been given all administrative rights. Usernames and passwords should not be shared. Closing dates should also be used to ensure that data from prior periods cannot be modified once it has been finalized. 5. Implement Quarterly Independent Reviews of Internal Controls: The company should allow an independent review of accounting functions such as bank reconciliations. This review should include all locations at random times throughout the year. PG