Provide a brief description of the transaction cycle. The key internal control and/or operational risks, are summarized below:
Risk | Existing Control Processes | Control Risk Value | Operational Risk |
Sales not "billed" by units and/or tracked in AR systems: Misappropriation of payments and inaccuracies in the general ledger can occur when funds are received but cannot be matched to an invoice. Payments could be misappropriated if no record of expected payment exists. | We have been working hard on identifying all areas in SCL that do occasional "sales" to ensure they create invoices and track AR. (Example, Athletics has fees for athletes in certain sports, there are no invoices for these, they turn in spreadsheets with names, amounts and check numbers of payment with a stack of checks). Most of our units that have volume sales use appropriate systems and record to AR with collections efforts, etc. It is the one-off "sales" that we often find out about when a check shows up that we are trying to get better control over. Much of this is educating the unit staff on proper internal procedures and policy. | Low | Low |