Subject:
Certifying Controls over the Agency’s Payment Process
Reference:
Guide to Financial Operations:
Chapter XII, Section 4.B - Certification of Vouchers
Chapter XII, Section 4.D - Certification of Internal Controls over the Payment Process
Chapter XIII, Section 2.C - Expense Report Certification
Guidance:
Title 2, Chapter I, Part 6, Section 6.6 of the New York Codes, Rules and Regulations requires the head of an agency to certify to the Comptroller annually, or at any time there is a new head of the agency, that the agency has sufficient internal controls over the payment process to ensure claims are appropriate to pay. Agency heads may use a variety of resources and techniques to obtain assurance about the internal controls over the payment process as a basis for that certification.
This certification requirement is separate and distinct from DOB’s annual Internal Control Summary and Certification.
Section 110 of New York State Finance Law requires the head of the agency certify or approve vouchers for submission to the Comptroller for audit. Other individuals may also approve vouchers if the head of the agency, or a designee, has granted that authority by a rule or written directive filed with the Comptroller. Section 110 also requires the designee be identified in writing and filed with the Comptroller. Agencies are required to have proper internal controls over the designation of Voucher Authorizers, including appropriate system access controls.
Update:
The Guide to Financial Operations Chapter XII, Section 4.D - Certification of Internal Controls over the Payment Process has been updated to provide agencies with an internal controls audit program to consider using for the 2023 certification.
The 2023 certification has been extended to be due on or before June 30, 2023. For this certification, in addition to certifying the internal controls over the payment process and the voucher authorizer designation process, agencies (including customers of the Business Service Center) should also assess controls over the credit card reconciliation process for Statewide credit card transactions.
For more information, see Guide to Financial Operations Chapter XII, Section 4.D - Certification of Internal Controls over the Payment Process.