minnesotamanagementbudgetanddepartmentof.docVIP

Minnesota Management Budget and Department of Administration MAPS Policy and Procedures Minnesota Management Budget, Agency Assistance Issued: August 29, 1995 Number: 0803-01 Revised: July 1, 2009 Payment Requests, Preparation, and Approval Objective To ensure payments are processed accurately and in an appropriate and timely manner. Policy Agencies shall comply with the procedures outlined below develop their own internal policies to determine guidelines for processing payment requests.? The policy shall address the following: Payments are made to vendors in a timely manner, in accordance with Minnesota Statute 16A.124. Payments are made to the correct vendor/recipient from the correct funding sources and fiscal year. The liability date (record date) is recorded accurately to ensure payments are recorded in the proper fiscal year and liabilities at year-end are accurately presented in the state’s financial statements. Payments are entered in the appropriate system as required by MAPS Operating Policy and Procedure 0702-01, Encumbrances in MAPS and Point of Entry. Additionally, the policy shall provide for: Internal controls Risk mitigation procedures Supporting documentation retention Procedures Internal Controls Internal and Compensating ControlsAgency management shall maintain a system of effective internal controls as they relate to financial activities.? These controls shall be documented and periodically evaluated to ensure that they are adequately designed, properly implemented and functioning effective.? Small agencies and boards, which have limited staff, may compensate for a lack in the separation of duties by establishing a review and approval process external to MAPS. Staffing limitations may prevent an agency from adequately separating incompatible functions. In those instances, compensating controls such as independent reviews must be established. Examples of independent reviews include but are not limited to: electronic and