BOP Program Statement 8510.02 § 32

specific control requirements for identified segments of

accounting and procurement activity:

a. Cash Receipts. Controls include requirements for safe-keeping facilities that will prevent unauthorized access to cash

items and other cash control documents received or on hand.

Procedures should ensure that staff processing incoming mail are

not involved with the recording or deposit of cash items.

— Prompt recording by accounting personnel and deposit of

cash items by the accounts receivable manager should be

ensured.

— Procedures must be established to ensure proper

recording and documentation of all transactions

involving billings. The accounts receivable manager

must ensure that the billing has been properly signed

and recorded, and that all charge-backs are promptly

investigated and resolved.

b. Cash Disbursements. Controls include identifying the

specific documents required to support each disbursement action

including the procurement actions leading to the cash

disbursement.

— Accounting personnel should verify the transactions

involved in the disbursement action are proper.

— Accountants should review and approve voucher schedules

and support documents for accuracy, adequacy of

document support, and propriety of payment.

The sub-certifying officer(s) are responsible for final review

of all vouchers prior to certification. UNICOR will not adopt a

statistical sampling method of review due to the low volume of

vouchers processed at each location. Post payment sampling of

paid vouchers is required of UNICOR's management and by internal

program review staff.

c. Accounts Receivable. Accounts receivable staff must ensure

that all receivables are recorded accurately and promptly. Such

recordings should be based upon pre-established documentary

support such as shipping transactions and sales invoices.

— Finance staff must ensure that all receipt recordings

have adequate support documentation and all receipt

deviations from amount set-up are reconciled and

adjusted satisfactorily.

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— Accounts receivable staff should provide periodic

reports of aged receivables and ensure that timely

collection activity has been taken. Specific

collection problems should be noted in the report.

— Accounts receivable staff and, when necessary, Business

Managers, SOIs, and Program Managers should review the

aged receivables report, the collection action taken,

and provide recommendations to solve noted collection

problems.

— Accounts Receivable staff should process write-offs,

conversions, and settlements or forgiveness of

receivables subject to delegated approval.

— Invoicing staff must ensure that all electronic

billings, including charge-backs, are recorded and

documented properly.

— Accounts receivable staff must ensure that all

electronic billings that are paid during a billing

cycle are recorded clearly as paid for the month’s

business in which they are accomplished.

— Accounts receivable staff must ensure that prompt

billings occur when a shipment is made.

d. Capital Assets and Materials Inventories

— The FMB should provide instructions that distinguish

between a capital asset and operating expenditures for

accounting purposes.

— SOIs should ensure that only authorized and needed

property is ordered.

— Accounting personnel should ensure that all receipts of

property are timely and recorded accurately. Such

recordings should be based upon pre-established

document support requirements and adequate control

identification and responsibility assignment.

— Accounting personnel must ensure the detailed master

asset records are maintained for individual capital

assets. These records must be compared periodically

and reconciled to physical inventory.

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— Business Managers must ensure that periodic physical

inventories are performed to verify the existence and

condition of property and inventories. The physical

count must be performed by UNICOR personnel who are not

involved in the record keeping, physical control, or

management of the property or inventory. These counts

must be timely, accurate, and complete.

— The Business Manager must ensure that the accounting

records are adjusted to conform with the results of the

physical inventories.

— SOIs and Branch Managers must ensure physical security

measures are commensurate with the size, type, and

value of property.

— Business Managers must ensure the timely reporting of

all issues, transfers, retirements, losses, and other

variances.

— The warehouse person must inspect all goods received

and report the receipt in the automated system. A

quality assurance employee is responsible for formally

inspecting the goods received noting his or her

findings on the material receipt document.

e. Payables

(1) Accounting personnel must ensure that all payables and

other claims against the Government are recorded promptly and

accurately. Prompt recording is based upon effective

implementation of UNICOR's accrual accounting system.

— Liabilities are established when goods or services

are received whether accompanied by an invoice.

While inmate payrolls do not become a part of the accounting

records until month-end, they are considered to be encumbrances

if all amounts owing whether or not paid are recorded at that

time. Similarly, utility bills, civilian payroll accruals

compensation, etc. are limited to month-end recording to

facilitate the recording process while assuring that all existent

payables are recorded for financial statement presentation

purposes.

(2) Accounting personnel must ensure that recorded payables

have necessary support documentation (i.e. requests for

purchases, purchase orders, material documents, and invoices.)

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(3) Accounting personnel must ensure that all payables are

liquidated promptly assuring that cash discount terms are met and

discounts taken or justification for not taking discounts is

effectively annotated on payable documents.

f. Finished Goods

(1) A quality assurance employee must ensure the quality of

goods are maintained during the production process.

(2) Factory Managers have the primary responsibility for

controlling finished goods. They must process transactions

moving goods from production to finished goods inventory

promptly. Generally, the Factory Manager is responsible for

communicating when an order is ready to ship.

However, there are instances when the Factory Manager is not

in a position to advise whether a shipment should be made:

— items are produced for stock;

— the contract with the customer requires that

shipments be made in large quantities.

Then, the responsibility for directing a shipment is placed

on the local employee having knowledge when the shipment should

be made (i.e., Business Manager or Shipping Supervisor.)

(3) Products must be packed properly to avoid shipping

damage. Instruction labels should be attached advising the need

for prompt inspection, handling of noted damage or product

defects, and identification of the unit responsible for payment.

(4) The shipping supervisor processes shipping transactions

and accounts receivable staff must review them daily for

invoicing.