Comptroller Fiscal Year Memo Letter Head


M E M O R A N D U M

To:Internal Control Officers, Single Audit Liaisons, and Chief Fiscal Officers
From:Martin J. Benison, Comptroller
Date:April 17, 2009
Re:Internal Control Questionnaire and Department Representations Due May 6, 2009

Comptroller Memo# FY2009-29


 

Executive Summary

This memo announces the FY2009 Internal Control Questionnaire (ICQ). New in FY2009: the ICQ application will be accessed via our intranet site, PartnerNet. There are also new features for printing and completing the ICQ. See the attached Instructions for Completing the FY2009 Internal Control Questionnaire for details. Very important is a new subsection under Federal Funds which applies to any department receiving federal stimulus funds under The American Recovery and Reinvestment Act (ARRA). Departments are advised to complete the ICQ on or before May 6, 2009. Auditors and the Comptroller's Quality Assurance Bureau review ICQ responses each year and may contact department staff to follow up on some of their answers. Department management is responsible for implementing and maintaining effective internal controls. The ICQ's Representations Section (Q) confirms this to the Commonwealth.


A user must first have PartnerNet permission in order to access the ICQ. ALL CFOs, Single Audit Liaisons and Internal Control Officers have already been given access to both PartnerNet and the ICQ. Once these users log on to PartnerNet, they will be presented with a link to the ICQ application.

The Internal Control Officer, the Single Audit Liaison, and the Chief Fiscal Officer (CFO) should work closely with senior management to identify appropriate staff for providing responses to the ICQ questionnaire. Please collect and review all responses, then enter into the website application no later than May 6, 2009. Instructions on completing and submitting the ICQ are attached at the end of this memo.

The ICQ is designed to give both the Comptroller (CTR) and the auditors a status on departmental internal controls. During the Single Audit, auditors from KPMG, the State Auditor's Office (OSA), and CTR will review the internal controls of some departments in more depth. They will also visit departments to follow-up on prior year findings, review compliance with federal and state regulations, test selected transactions, and review cash and encumbrances. The auditors use department internal control plans and ICQ responses, along with other procedures, to render an opinion on the internal controls of the Commonwealth as a whole.

Departments Using Centralized Business Units
Some departments use centralized business units to perform functions for multiple departments including, but not limited to, human resources, payroll, accounting, and procurement. These departments should answer the questions as if they used a contractor to perform these functions. In the comments field of each relevant section, briefly describe the arrangement.

Representations
At the end of the ICQ questionnaire, we have incorporated the departmental representation section (Section Q). The Department Head, the CFO, and the Internal Control Officer must all read and approve the statements contained therein. Enter the approvers' names and official titles, and approval dates in Section Q of the ICQ form. Print this section, have each person sign it, and keep on file as your department's certification of the representations.

Internal controls are critical to create an environment that is accountable to the public, while being responsive to the needs and direction of senior management. The Internal Control Act, Chapter 647 of the Acts of 1989, mandates that each department document its internal controls in accordance with guidelines established by the Office of the Comptroller - see: Internal Control Guide .

The completed ICQ is due on or before May 6, 2009. Staff should plan to provide a copy to any auditors who visit your agency as part of the Statewide Single Audit. If you have any comments, questions, or suggestions about the ICQ, contact the Comptroller's Help Line at (617) 973-2468. Thank you in advance for your time and cooperation.

Attachments:

Instructions for Completion doc format of 2009_29_ICQ Instructions.doc

Internal Control Questionnaire in PartnerNet

 

cc:Department Heads
 MMARS Liaisons
 Payroll Directors
 General Counsels
 Internal Distribution