To fill in the Grantee Facing tab

1) In Row 2, starting with Cell C2, replace 'Name and Title #' with the Name and Title of employees
responsible for the listed procedures/functions. For example, "Jane Doe, CFO." Do not put department
titles in these columns, only individual names and/or titles are considered satisfactory.

2) In Columns C through L, place an "X" in each cell where an employee identified in Row 2 is responsible
for a procedure/function as part of their assigned role

3) If a process or procedure/function is not applicable enter "N/A"

4) Optional: Delete the contents of any unused 'Name and Title #' cells (row 2)

Contact your assigned Monitoring Officer if you have any questions.

 Program Volunteer
Process Procedure/Function Director Manager Coordinator
Receive cash/checks
Post receipts
Accounts
Approves bank desposits
Receivable
Banks the deposit
Reconcile accounts receivable
Custody of petty cash
Petty Cash Approve petty cash replenishments
Reconcile petty cash
Hire employees / volunteers
Update compensation and benefits
Approve timesheets

Payroll Prepare payroll and benefits distribution

Approve payroll and benefit distribution

Reconcile payroll and benefit
distribution
Prepare purchase order
Approve purchase order
Prepare payment request
Approve payment request
Custody of checks
Purchasing / Prepare checks
Accounts Payable Sign checks

Reconcile purchase order, invoice,

payment and receipt of goods/services
Mail / distributes checks
Verify receipt of goods / services

Cost Allocation
Calculate cost allocation of pooled
expenses
Track match contributions
Prepare organizational/program
financial reports
Approve organizational/program
Reporting / financial reports
Drawdowns Prepare annual single audit
Prepare federal financial reports
Approve federal financial reports
Submit federal financial reports
Draw funds from PMS
General Ledger Make/revise General Ledger Entries
Bank Account
Reconciliation Reconcile bank accounts
 Employee Name and Functional Title
Project Board
Front Desk Accountant Director Member Supervisors Freddy LeChat
X
X
X
X
X
 Instructions
All grantees assigned a FOFA or New to AmeriCorps activity must complete
the Segregation of Duties Worksheet. This workbook has been posted to
the Office of Monitoring's external website with the internal tabs hidden.
The Worksheet Review and Internal Control Analysis tabs must be
unhidden upon receipt of the completed worksheet.

The Worksheet Review tab is intended to flag functions that may be

insufficiently segregated within an organization. This tab groups common
duties into processes and uses formulas to pull data from the completed
Segregation of Duties Worksheet tab to:

1) Carry over the grantee's entries;

2) Identify instances where staff are assigned functions across Control

Categories. The formula in the Control Category Red Flag cells will read Yes
in red if an employee is assigned two or more functions across Control
Categories within a given process. This formula also factors the overarching
“Make/revise General Ledger Entries” and “Reconcile bank accounts”
functions into each process level analysis. When a red flag is identified, the
Cross Cutting Roles cell outline the corresponding Control Categories that
the individual is responsible for within that process. Note that red flags do
not automatically constitute findings. MOs are responsible for reviewing
the overall segregation of duties within each process to determine
whether the recipient has met the standard of establishing internal
controls that provide reasonable assurance against risk (see 2 CFR
200.303).

3) Carry over the grantee's entries into the Internal Control Analysis tab.
Instructions
The Internal Control Analysis tab facilitates a comparison of how Proper segregation of duties is a key internal c
tasks are assigned and segregated according to a grantee's entries or fraud by ensuring that no employee has the
in the Segregation of Duties Worksheet tab, their written financial in the normal course of their duties. Where ap
policies, interviews, and cost testing observations. Categories of recording, authorization, custod

On the Internal Control Analysis tab, column D will autopopulate • (R)ecording transactions
with information from the Worksheet Review tab. - When recording is combined with other cont
intentional misstatements going undetected.
1) This tab does not need to be completed if the recipient does • (A)uthorizing transaction
not have policies that explicitly cover the internal controls and - When authorization is combined with record
responsibilities outlined in the Segregation of Duties Worksheet. potentially exposing the recipient to unauthor
An RFI should be issued in that instance (see 01.07.02 for guidance • (C)ustody of assets
on compliance decisions). - When custody is combined with recording or
without detection.
2) In columns C, E, and F enter the title of the employee who is • (Rx) Reconciling transactions
assigned a given task according to the grantee's written financial - When reconciliation is combined with custod
policies, interview(s), and in cost testing observations. Note that or intentional misstatements going undetecte
cost testing may not touch every process and their associated
procedures/functions (i.e., cells for unobserved functions can be
left blank).

3) In column G, choose Yes, No, or N/A from the drop down to

identify whether the recipient is following their established
internal policies (question 01.07.02).

4) In column H, notate any information you deem pertinent to the

review.
 Control Categories
of duties is a key internal control intended to minimize the occurrence of errors
that no employee has the ability to both perpetrate and conceal errors or fraud
of their duties. Where applicable, duties should be split across the Control
ing, authorization, custody and reconciliation -

combined with other control categories, there’s a risk of errors, omissions, or

ments going undetected.

n is combined with recording or custody, it bypasses an essential control,

the recipient to unauthorized or fraudulent activities.

mbined with recording or authorization, it becomes easier to manipulate assets

n is combined with custody or authorization, there’s a risk of errors, omissions,

tements going undetected.
 Control
Process Procedure/Function
Categories
C Receive cash/checks
R Post receipts
Accounts
A Approves bank desposits
Receivable
C Banks the deposit
RX Reconcile accounts receivable
FOFA 01.07.01: Control Category Red Flag

Cross Cutting Roles

C Custody of petty cash

Petty Cash A Approve petty cash replenishments
RX Reconcile petty cash
FOFA 01.07.01: Control Category Red Flag

Cross Cutting Roles

R Hire employees / volunteers

A Approve compensation and benefits
A Approve timesheets
Payroll
R Prepare payroll and benefits distribution
A Approve payroll and benefit distribution
RX Reconcile payroll and benefit distribution
FOFA 01.07.01: Control Category Red Flag

Cross Cutting Roles

R Prepare purchase order

A Approve purchase order
R Prepare payment request
A Approve payment request
C Custody of checks
Purchasing / R Prepare payment (e.g., check, electronic payment, etc.)
Accounts Payable A Approve payment (e.g., check, electronic payment, etc.)
Reconcile purchase order, invoice, payment and receipt
RX of goods/services
Mail / distributes payment (e.g., check, electronic
C payment, etc.)
C Verify receipt of goods / services
FOFA 01.07.01: Control Category Red Flag

Cross Cutting Roles

Cost Allocation
R Calculate cost allocation of pooled expenses
FOFA 01.07.01: Control Category Red Flag

Cross Cutting Roles

R Track match contributions

R Prepare organizational/program financial reports
A Approve organizational/program financial reports
Reporting / R Prepare annual single audit
Drawdowns R Prepare federal financial reports
A Approve federal financial reports
R Submit federal financial reports
A Draw funds from PMS
FOFA 01.07.01: Control Category Red Flag

Cross Cutting Roles

General Ledger
R. Ledger Make/revise General Ledger Entries

Bank Account
Reconciliation
Rx. Accounts Reconcile bank accounts
 Staff Assigned

Director Program Manager Volunteer Coordinator

Front Desk Accountant Project Director
X
X
X
X
X
Yes No

C, R, Rx
 When the “Control Category Red Flag” row display
Board Member Supervisors Freddy LeChat issue. This is because the employee listed in cell 2 o
cutting Control Categories. Additionally, this emplo
ledger entries and reconciling bank accounts.
perpetrate and conceal errors or fraud in the norm

The Cross Cutting Roles row lists which categories o

two overarching roles (R. Ledger and Rx. Accounts)
compliance decision for 01.07.01.

Note that red flags do not constitute automatic fin

segregation of duties within each process to determ
establishing internal controls that provide reasonab

COSO Control Categories

R - Record
A - Authorize
C - Custody
RX - Reconcile
R. Ledger - Makes/revises General Ledger Entries
Rx. Accounts - Reconciles bank accounts
 Notes
ol Category Red Flag” row displays “Yes”, highlighted in red, it could signal a potential
use the employee listed in cell 2 of that column has been assigned two or more cross-
tegories. Additionally, this employee may also be responsible for making general
d reconciling bank accounts. At a baseline, no employee should have the ability to both
nceal errors or fraud in the normal course of their duties.

Roles row lists which categories of tasks are assigned to the employee, including the
oles (R. Ledger and Rx. Accounts). This information should be used to inform the
on for 01.07.01.

s do not constitute automatic findings. MOs are responsible for reviewing the overall
ties within each process to determine whether the recipient has met the standard of
nal controls that provide reasonable assurance against risk (see 2 CFR 200.303).

COSO Control Categories

/revises General Ledger Entries

conciles bank accounts
 Finance Policy Answer Worksheet Answer
Process Procedure/Function
(01.07.02) (01.07.02)

Receive cash/checks Front Desk

Post receipts Front Desk

Accounts
Approves bank desposits Accountant
Receivable
Banks the deposit Front Desk

Reconcile accounts receivable Front Desk

Custody of petty cash

Approve petty cash replenishments

Petty Cash

Reconcile petty cash

Hire employees / volunteers Accountant

Update compensation and benefits Accountant

Approve timesheets Supervisors

Payroll
Prepare payroll and benefits distribution Accountant

Approve payroll and benefit distribution Supervisors

Reconcile payroll and benefit distribution Freddy

Prepare purchase order

 Approve purchase order

Prepare payment request

Approve payment request

Custody of checks
Purchasing
Prepare checks

Sign checks
Reconcile purchase order, invoice,
payment and receipt of goods/services
Mail / distributes checks

Verify receipt of goods / services

Calculate cost allocation of pooled

Cost Allocation
expenses

Track match contributions

Prepare organizational/program financial

reports
Approve organizational/program
financial reports

Reporting / Prepare annual single audit

Drawdowns
Prepare federal financial reports

Approve federal financial reports

Submit federal financial reports

Draw funds from PMS

General Ledger Make/revise General Ledger Entries

Bank Account
Reconcile bank accounts
Reconciliation
 Does the sponsor's/grantee's written financial policies
Who is identified in
Who is identified in explicitly state the internal controls in place, consistent
Cost Testing
the interview with the worksheet's results and with the required staff
Observations
interviews? (Y/N) (01.07.02)
Monitoring Officer Notes, including any
pertinent information.
(01.07.02)