Internal Control Flow Charts

Detective ControlsStart

Quick Books: Job Cost Report

Customize Report: Specific Job, Date: Month in Question,

Paid Status,

Export to Excel

Sort by Paid

status then

Subtotal

Sort by Labor and material

then subtotal

Expenses

Customer Billing

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Give results to

Project Manager

1

This control is determined effective when the job expenses plus 20% profit is equal to the customer billing for the month. If the expenses do not equal the customer billing an understanding of why they do not match. Consistently using this method should result in effective monitoring of job costing.

Corrective ControlsStart

1

Monthly Job Loss

Monthly Job Gain

Calculate Dollar

Amount of Loss

Loss related to

labor

Loss related to materials

Question Project

Manager and Field Staff as to

loss

Bill for loss in next month

Calculate Dollar

Amount of Gain

Gain related to

labor

Gain related to materials

Question Project

Manager and Field Staff as to

gain

Gain Related to actual job profit or

materials to be purchased

Earmark cash as unearned

revenue for materials

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Corrective controls will be considered effective if the project is completed under budget and all monthly billing gains and losses are understood.

Manual Controls – Cash Flow Statement

Start

Quick Books: Check detail

report

Quick Books: deposit detail

report

Customize Report: Month in question

date range

Customize Report: Month in question

date range

Export to Excel

Export to Excel

Remove all total

lines and blanks from

checks

Code with specific short hand

Subtotal amounts based on

code

Transfer subtotals to yearly master sheet

Decide if any expense group has a high or low amount

Current Expenses

Past Expenses

Forecast future expenses and

make overhead decisions

Total deposits

Transfer totals yearly master sheet

Decide if any deposits were

high or low

Current Deposits

Past Deposits

Forecast deposits and

make overhead decisions

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Cash Flow Statement Continued

This control will also be deemed effective if there

is sufficient evidence in

order to forecast monthly

revenues and expenses.

The manual control will be deemed

effective if overhead is under control with a 20% of revenue.

Pre-Activity Controls: Invoice Entry

Start

Stamp received vendor

invoice with date and

then initial

Sort vendor invoices by brokered

trucks and vendor invoices

Sort again alphabetically

Enter vendor invoices into QuickBooks

Record: Vendor, Date, Amount, Job

attributed

Save and repeat steps

until all vendor

invoices are entered

Pre-activity controls will be considered effective when the monthly expenses for job costing can be accurately

verified by the field staff and Project Manager.

Operation Controls

Job Expense Report

Cash Flow statement /

analysis

Understanding of Gain/Loss on

Job Costs

Discussion with Field and

Office on gain/loss for

improvements

Next month

cost saving

measures

Conditional Lien Waivers

Needed

Unconditional Lien Waivers

Needed

Conditional Lien Waivers

Unconditional Lien Waivers

Earmark funds for

unconditional lien waivers

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Operation controls will be considered effective when the accounting records match the field work and all waivers are accounted.