1 Colo. Code Regs. § 101-1-1-1

Current through Register Vol. 47, No. 19, October 10, 2024

Rule 1 CCR 101-1-1-1 - ACCOUNTING PRINCIPLES AND STANDARDS

1.AUTHORITY

§24-30-202(12), C.R.S. (Accrual System of Accounting)

2.DEFINITIONS

2.1. GAAP - Generally accepted accounting principles, as adopted by the Governmental Accounting Standards Board

3.RULE

The accounting principles of the State shall be based on GAAP. In addition, all applicable statutory provisions shall be met.

When a conflict between statutory provisions and GAAP exists, GAAP takes precedence in financial reporting.

When it is necessary to report compliance of financial transactions with statutory requirements, supplemental schedules may be used. Preparation of separate statutory based reports may also be necessary. INTERNAL CONTROLS

4.AUTHORITY

§24-17-102(1), C.R.S. (Internal Controls)

§24-17-103, C.R.S. (Annual Internal Control Report)

§18-4-401, C.R.S. (Theft)

§18-8-407, C.R.S. (Embezzlement of Public Property)

§§ 24-17-101 - 24-17-104, C.R.S. (State Department Financial Responsibility and Accountability Act)

5.DEFINITIONS

5.1. Commitment Voucher - See Fiscal Rule 3-1 (Commitment Vouchers) and State Contract, Grant Agreement, and Small Purchase Documentation.

5.2. Fraud - Misstatements Arising from Fraudulent Financial Reporting, Misstatements Arising from Intentional Misappropriation of Assets, and theft or embezzlement of public property.

5.3. Misstatements Arising from Fraudulent Financial Reporting - Intentional misstatements, or omissions of amounts or disclosures in financial statements, with the intent to deceive financial statement users.

5.4. Misstatements Arising from Intentional Misappropriation of Assets - The theft of an entity's assets where the effect of the theft causes the basic financial statements not to be presented in conformity with GAAP, as defined in Fiscal Rule 1-1 (Accounting Principles and Standards).

5.5. Pre-audit - A review for compliance with applicable statutes, Fiscal Rules, and other regulations, and adherence to accepted business practices by a State Agency or Institution of Higher Education.

5.5.1. Pre-audit of a Commitment Voucher originating in the same State Agency or Institution of Higher Education includes an examination of budget, compliance, and documentation in order to verify and substantiate a transaction before the Commitment Voucher is recorded and paid.

5.5.2. Pre-audit of interagency transactions that require a Commitment Voucher:

5.5.2.1. For the billing State Agency or Institution of Higher Education, Pre-audit includes the same responsibilities as Pre-audit of a commitment voucher originating in the same State Agency or Institution of Higher Education.

5.5.2.2. For the paying State Agency or Institution of Higher Education, Pre-audit includes a review of the budget and compliance. The paying State Agency or Institution of Higher Education may rely on the billing agency to verify and substantiate the transaction.

5.5.3. Pre-audit of certified information

5.5.3.1. For the State Agency or Institution of Higher Education that prepares the certified information, Pre-audit includes an examination of the budget if applicable, compliance, documentation, and procedures to verify the accuracy of the information before the State Agency or Institution of Higher Education certifies the information.

5.5.3.2. The agency that receives the certified information may rely on the Pre-audit conducted by the State Agency or Institution of Higher Education that prepares that information.

6.RULE

6.1. State Agencies and Institutions of Higher Education have the responsibility for the design and implementation of programs and controls to prevent, deter, and detect Fraud.

6.2. Any suspected Misstatements Arising from Fraudulent Financial Reporting shall be reported in writing to the State Controller as soon as it is discovered.

6.3. Any suspected theft or embezzlement of State funds or assets or sensitive State financial information shall immediately be reported to the Chief Executive Officer, or delegate, and the Chief Fiscal Officer of the State Agency or Institution of Higher Education where the theft or embezzlement may have occurred and appropriate action shall be taken by the State Agency or Institution of Higher Education. The Chief Fiscal Officer or controller of a Principal Department shall report in writing and in a timely manner the following to the State Controller:

6.3.1. A suspected theft or embezzlement of State funds or assets totaling $5,000 or more per incident;

6.3.2. All suspected theft of sensitive State financial information; and

6.3.3. The results of any investigation or follow-up including corrective measures implemented to prevent or reduce the likelihood of future occurrences.

6.4. When complying with §24-17-101, et seq., C.R.S., the form, content, and due date of the written statement shall be determined by the State Controller.

6.5. A State Agency or Institution of Higher Education shall complete a pre-audit of all accounting documents and financial transactions prior to recording the documents on the State Financial System or on a State Agency or Institution of Higher Education Financial System., and prior to making payment. State Agencies and Institutions of Higher Education shall implement internal accounting and administrative controls that reasonably ensure that financial transactions are accurate, reliable, conform to the Fiscal Rules, and reflect the underlying realities of the accounting transaction (substance rather than form). A State Agency or Institution of Higher Education shall consider the factors of risk, cost, and business requirements when establishing these internal controls.

1 CCR 101-1-1-1

41 CR 19, October 10, 2018, effective 11/1/2018

45 CR 11, June 10, 2022, effective 7/1/2022

46 CR 11, June 10, 2023, effective 7/1/2023

47 CR 08, April 25, 2024, effective 7/1/2024