Attachment No. 16 Financial Questionnaire.pdf

ATTACHMENT No.

FINANCIAL QUESTIONNAIRE:

EVALUATION OF FINANCIAL MANAGEMENT SYSTEMS

Financial management system requirements for contractor/grantee organizations of the National Institutes of Health (NIH) are addressed in Title 45 Code of Federal Regulations (CFR) Part

74.21. Contractor/grantee organizations are expected to have certain systems, policies, and procedures in place for managing their own funds, equipment, and personnel. A system of clear roles and responsibilities should be delineated within the organization, and should include the financial management systems. These systems include, but are not limited to, accounting, internal controls, and budgetary controls. Demonstration of an organization’s management capabilities is one of the evaluative criteria used in the administrative review process prior to issuance of an award. To encourage uniformity in the review of an organization’s financial management system, we have developed a questionnaire entitled "Evaluation of Financial Management Systems." The questionnaire is a tool designed to assist both you and NIH staff in assessing your organization’s management capabilities. Concerns related to your organization’s management capabilities must be addressed and resolved as a condition for award.

EVALUATION OF FINANCIAL MANAGEMENT SYSTEMS

YES NO COMMENT

A. GENERAL

INFORMATION

1. Does your organization have current cost-reimbursable contracts with any federal agency? If so, please provide a list and the agency point of contact.

2. Has any aspect of your organization’s activities been recently audited by a Government agency or independent public accountant? If yes, please provide copy of audit report.

3. Has your organization or any key scientific/professional employee ever been suspended/debarred from participation or award of a federal contract? Please address.

B. ACCOUNTING SYSTEM:

1. Does your organization maintain a chart of accounts?

2. Is a double entry accounting system used?

ATTACHMENT No. 20

3. Does your accounting system include the basic books of account, i.e., general ledger, operating ledger, project cost ledger (e.g., subsidiary ledger containing data by cost element for each project), payroll journal, purchase journal, etc…? If not, describe the books of account maintained.

Please document the books of account maintained in your accounting system.

4. Does your accounting system provide for the recording of expenditures for each program by required budget cost categories?

5. Does your accounting system identify receipt and disbursement for each contract/grant project?

6. Does the organization prepare financial statements at least annually? If not, how often?

7. Do you have an established payroll distribution and/or time or effort reporting system? How do employees account for their time and effort? Please explain.

8. Does your payroll distribution system utilize either plan-confirmation, after the fact activity records, or multiple confirmation records?

C. FINANCIAL

CAPABILITY:

1. Please provide a copy of your latest audited financial statements for your most recent accounting year.

ATTACHMENT No. 20

2. Does your organization have an established line(s) of credit? If so, identify source and amount.

D. BUDGETARY

CONTROLS:

1. Are there budgetary controls in effect to preclude incurring obligations in excess of (e.g., comparison of budget with actual expenditures on a monthly basis):

a. Total available for award;

and

b. Total funds available for any cost category if restricted by terms of the award.

2. Does the organization use an operating budget to control project funds?

E. INTERNAL CONTROLS

1. What safeguards have been instituted to ensure adequate internal controls in the company? Please describe. Some examples might be:

a. Accounting entries are supported by appropriate documentation; e.g. purchase orders and vouchers.

b. Separation of responsibility in the receipt, payment, and recording of cash.

c. Other