Audit of Accounts Receivable

• The Department has a departmental credit policy in place.

• The roles and responsibilities of stakeholders are well defined.

• The Department has put in place a receivables management plan.

• A framework of internal controls for accounts receivables is in place.
  • Financial system
  • Segregation of duties
  • Audit trails
  • Monitoring mechanisms

• The procedures are communicated to the employees responsible for the administration of accounts receivable.

• The level of experience and training of those who administer accounts receivable are appropriate.

• Accounts receivable transactions are classified, recorded and reported accurately and promptly, in accordance with government accounting and financial reporting standards.

• Reconciliation of accounts is done regularly and errors that are identified are followed up.

• Periodic management reports are prepared and presented to senior management.

• The Department recognizes receivables promptly.

• A process is in place to allow receivables to be identified promptly and customers to be invoiced.

Deposits

• Deposits are made promptly and assets are protected.

• The Department charges interest and applies administrative charges when appropriate.

Collections

• The Department pursues collections vigorously.

Bad debts

• Actions with respect to any write-off, remission, forigveness, or waiver of debts are taken on a timely basis in accordance with relevant regulations, Treasury Board policies and guidelines.

• Allowances for doubtful accounts are estimated in accordance with the Policy on Allowances for Valuation of Assets and Liabilities.

Year-end Procedures

• Year-end procedures are followed.