ARMICS - Process/Transaction-level Assessment
Significant Process:PHAREDS
Template completed by:Testing performed by:
Task / Potential Risk Event / Potential Problem orMisstatement / Risk Event
Likelihood
before controls / Control Activities / Control Objectives / Test of Control / Control Test Results / Risk Event
Likelihood
after controls
List your process
steps here. This can
be used to write
desk procedures.
Task steps should
match procedures -
otherwise update
procedures. / What can happen to
mess up the process or
prevent it - look at the
risks with each step.
For example, keying -
human error (misskey) / For example -
information in
database is wrong. / Human error is
always high
likelihood.
Choose Low,
medium or high / What have you put in place to
make sure that the potential risk
event doesn't happen, or is
caught timely? Second set of eyes
verifying data entry and
comparing to source
documentation? (evidenced by
sign off and review) You can have
a control activity that covers
several task steps. / Stewardship of assets, to
ensure accurate financial
data, etc. etc. / How do you know your
control activity is working?
Pull a sample, check for
review (should be signed
and dated). Indicate
sample size etc. For
example, Cardinal
reconciliations - pull 4
months / Put who performed
tests and what the
results were. For
example, 10 grant files
pulled, one was missing
the sign off stamp for
verification of data. Put
date testing was done. / High, medium
or low. This
lets you have
an idea of what
your risk still is
after controls
are in place.
FA/PA create
PHAREDS/ NOAEPAF / Innappropriate access
granted / Limiting access to
personal information
breached / Low / Request for security access to
Banner forms are made by
supervisor upon completion of
required training. / Safeguarding/securing
financial and personal
data / Periodically review
security access for
employees and ensure all
access is needed for job
functions. A review was
conducted of 5 employees
EWPs and security access
to Banner. / Jane Doe conducted the
review. Based on the
review of 5 employee
EWPs and banner access
all employees had the
proper access to Banner
forms. 4/30/15;
8/31/15; 12/31/15 / Low
Staff determines if
PHAREDS
adjustment is
needed / Failure to recognize
that an adjustment is
needed / Inaccurate financial
records / Medium / Review of personnel module of
finance database, monthy SAS
WRS reports; email confirmation
or phone notation of requested
changes / Reliability of HR or
financial data/reporting / Pull a sample (10) of the
personnel module reviews
and monthly SAS WRS
reports to ensure all
adjustments were
completed/reviewed.Pull
a sample (10) of
supporting
documentation to verify it
supports the change and
is on file. / Jane Doe completed the
verification. Based on
the review of 10
modules/reports all
PHAREDS adjustments
were completed.
Supporting
documentation was on
file and supported the
adjustments made.
12/31/15 / Medium
ARMICS - Process/Transaction-level Assessment
Significant Process:PHAREDS
Template completed by:Testing performed by:
Task / Potential Risk Event / Potential Problem orMisstatement / Risk Event
Likelihood
before controls / Control Activities / Control Objectives / Test of Control / Control Test Results / Risk Event
Likelihood
after controls
PHAREDS processed
beyond university
policy time allowance / Violation of university
policy / Low / Review of university policy and
pay periods; confirmation via
email with G & C for unique
situations / Compliance with State
and University policy;
Reliability of HR or
financial data/reporting / Pull a sample of 10
processed PHAREDS,
review to ensure
processed within allotted
time per university policy. / Based on the review
conducted by the Jane
Doe all processed
PHAREDS adjustments
were completed within
the allotted time per
university policy.
12/31/15 / Low
FA/PA enters
PHAREDS
redistribution / Incorrect FOAPAL or
"V" number entered / Inaccurate financial
records / Low / Verify correct index prior to
completion; use index to populate
remaining fields; use NBAJOBS to
verify correct V# for employee / Reliability of HR or
financial data/reporting / Review 10 processed
PHAREDS and ensure
information was entered
correctly. / Based on review
conducted by Jane Doe
all 10 PHAREDS were
entered
correctly.12/31/15 / Low
FA/PA approves
PHAREDS
redistribution / Transaction is not
completed and posted / Inaccurate financial
records / Low / Follow instructions to completion
of submittal; review Banner for
status of transaction, review by
university payroll authority. / Reliability of HR or
financial data/reporting / 10 processed PHAREDS
were pulled and verified
to ensure proper posting
in Banner. / Jane Doe verified 10
processed PHAREDS and
all were posted corretly
in Banner. 12/31/15 / Low
FA/PA processes
NOAEPAF outside of
allowable time
restrictions / Distribution outside
allowable pay period
restrictions / Inaccurate financial
records / Low / Banner will reject entry if outside
allowable last paid date / Reliability of HR or
financial data/reporting / Review 10 processed
PHAREDS ensure they
were processed within
allowable pay period
restrictions. / Jane Doe reviewed 10
processed PHAREDS and
all were processed
within the allowable pay
period
restrictions.12/31/15 / Low
FA/PA approves
NOAEPAF
distributions
overiding previously
entered future
distribution / Future payrolls may be
incorrect / Inaccurate financial
records / Medium / Review of NBAJOBS, review
personnel module of finance
database, monthly index
reconciliation / Reliability of HR or
financial data/reporting / Pull a sample of 10
processed PHAREDS and
ensure that distributions
are entered correctly. Pull
4 monthly index
reconciliations to ensure
completion and accuracy. / Jane Doe reviewed 10
processed PHAREDS and
distributions were
entered correctly. 4
monthly index
reconciliations were
completed and were
accurate. 12/31/15 / Medium
ARMICS - Process/Transaction-level Assessment
Significant Process:PHAREDS
Template completed by:Testing performed by:
Task / Potential Risk Event / Potential Problem orMisstatement / Risk Event
Likelihood
before controls / Control Activities / Control Objectives / Test of Control / Control Test Results / Risk Event
Likelihood
after controls
When a department
salary for a person
with a different
home department,
PA contacts home
department for
salary and allocation
% / May over or under pay
an individual; may pay
longer than needed / Inaccurate financial
records; loss of
money in the
department / Medium / Fiscal coordinators confirm salary
amount, percent and time periods
with home dept and maintain
documentation for support.
Monthly reconciliation of Banner
and SAS reports to confirm
accuracy of salary payment. / Reliability of HR or
financial data/reporting / Review 4 monthly index
reconciliations to verify
accuracy of salary
payments. Also, review
documentation. / Jane Doe: 4 months
reconciliations were
reviewed to confirm
accuracy of salary
payments. All payments
were correct. 12/31/15 / Medium