Risk Matrix
Fire Department Accounts Receivable
Collection Process

"A" = Actual Control "P" = Proposed Control

              CONTROLS                                                              
    C-1 C-2 C-3 C-4 C-5 C-6 C-7 C-8 C-9 C-10 C-11 C-12 C-13 C-14 C-15 C-16 C-17 C-18 C-19 C-20 C-21 C-22 C-23 C-24 C-25 C-26 C-27 C-28 C-29 C-30 C-31 C-32 C-33 C-34 C-35 C-36 C-37
  THREATS Billing department's policies and procedures. Accounts Receivable Section's (ARS) periodic reminder memo to billing department. ARS's review of individual FMS invoices/reports. Presetting of invoice date by billing department. Use of FMS data mailer. Matching payment to invoice copy. update of customer address file. Customer complaint about delinquent notice. Review of monthly aging schedule of accounts receivable. ARS's verification and approval of the edit list from billing department. San Jose Municipal Code (SJMC) 4.24.030 requirements. Finance Administrative Manual (FAM) procedural requirements. Business Tax/BID Vax program tolerating minor ($5 or less) underpayment. Depositing unidentified revenue in a holding account. Review of check payment date against remittance date. Imposing penalty and interest on delinquent accounts. Referral to collection agency, City Attorney, etc. Keeping undeposited receipts in a locked fireproof safe inside a locked alarmed vault. Segregation of responsibilities for safe combination, keys to vault door and vault alarm in the Treasury Division. Keeping undeposited monies in a stationery safe with a burgular alarm. MAintenance of a tickler system to track follow-up accounts. Automatic interface between VAX system and FMS system. Finance/Accounting review of reconciliation of interface entries. Requirement that payment turned in must equal FMS Cash Collection approval reg. Preparing revenue voucher for payment turned in. Requirement that all pending adjustments be cleared monthly. Use of a customer number to identify correct customer record. Verification of entries on the FMS edit list. Vax system's capability to match account numbers with customer names. Requirement to make check payable to Treasury. Requirement to turn in over the counter cash payments directly to cashier, not to A/R clerk. Supervisory review and approval of FMS edit list. Reconciliation of interface entries to the VAX transactions. Use of password to access particular computer module. ISD procedures for protecting, retrieving, or replacing system records. Finance-Treasury procedure to route information directly to Accounting. Requirement that payment documents be attached to remittance.
T-1 Billable item is not billed. A                                                                        
T-2 Billable item is not billed promptly.   A A                                                                    
T-3 Billing is in error.     A                                                                    
T-4 Penalty on delinquent account is in error.   A A                                                                    
T-5 Penalty on delinquent account is not billed.   A A                                                                    
T-6 Invoice is not mailed promptly.   A   A                                                                  
T-7 Invoice is altered before mailing.     A   A A                                                              
T-8 Invoice is mailed to wrong address.             A A A                                                        
T-9 Invoice is not mailed.               A A                                                        
T-10 Adjustment is in error (invoice and/or record).     A             A                                                      
T-11 Adjustment is not properly authorized. A                                                                        
T-12 Write-off is not properly authorized.                     A A                                                  
T-13 Payment is in error.           A             A                                                
T-14 Payments made in error are returned to payor intact or held awaiting correction and not deposited.                           A                                              
T-15 Payment is not turned in.               A A     A                                                  
T-16 Payment is not turned in promptly.   A             A     A                                                  
T-17 Payment is not turned in intact. A             A A     A                                                  
T-18 Payment is not collected promptly.                 A             A A                                        
T-19 Payment is lost due to theft or fire.                                   A A A                                  
T-20 Collection from write-offs is not turned in.                       A                                                  
T-21 Collections/Payments are not deposited promptly.   A                   A                                                  
T-22 Collection follow-up takes too long.                             A           A                                
T-23 Invoice is not posted.                                           A   A                          
T-24 Payment is not posted.                                                 A A A                    
T-25 Adjustment is not posted.                                                       A                  
T-26 Invoice is posted in error.                                                         A   A            
T-27 Payment is posted in error.                                                         A   A            
T-28 Adjustment is posted in error.                                                           A A            
T-29 Invoice is not promptly posted.   A                                       A                              
T-30 Payment is not promptly posted.                                                 A A                      
T-31 Adjustment is not promptly posted. A                                                     A                  
T-32 Unauthorized source document is posted. A   A                                                                    
T-33 Payment is posted but employee keeps payment.                                                 A                        
T-34 Employee lapses Accounts Receivable.                                                 A             A          
T-35 Detail record is in error. A                                                                        
T-36 Control record is in error. A                                         A   A                          
T-37 Accounting record is not kept current.                                           A A                            
T-38 Age of accounts receivable balance is in error.                                           A A A                          
T-39 Detail record does not agree with control account.                                           A   A                          
T-40 Entry to A/R file is in error.                                               A                 A        
T-41 Entry to A/R file unauthorized.                                                                     A    
T-42 Accounting record is lost due to theft or fire.                                                                       A  
T-43 Accounting Division is not promptly notified of billing, payment and/or adjustment.                                           A                             A
T-44 Billed accounts are not included in the A/R system - Fire.                                           A                       A      
T-45 Postings to A/R are not reconciled to deposits.                                                 A                        

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