Office of Internal Audit > Self-Assessment of Internal Controls

Office of Internal Audit
PO Box 1510
Pembroke, NC 28372

Phone: 910.775.4403
Fax: 910.521.6176
Email: larry.jacobs@uncp.edu

Location: Lumbee Hall, Room 324
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Compliance with IRS Information Return Reporting

Name:
Title:
Phone Number:
Department:
Date Submitted:
Form: Compliance with IRS Information Return Reporting
Fiscal Year-End: 2005

Note: The following documentation questions concern all Information Return Reporting Forms.

A. Documentation:
Yes	N/A	No
			1. Is there a formal plan of organization under which responsibilities are assigned for identifying Form 1099 reportable payments and reportable payees? Name of person responsible: Title:
			2. Does the agency have written instructions available for responsible agency personnel to use as a guide for consistent, accurate, preparation of IRS Forms 1099 at calendar year-end?
			3. Does the formal plan identify the specific individuals responsible for "flagging" transactions for subsequent Form 1099 reporting to the IRS?
			4. Does the formal schedule have target dates for completing tasks associated with calendar year Form 1099 reporting?
			5. Have policies and procedures been established concerning calendar year-end cutoff of 1099 accounting transactions?
			6. Have policies and procedures been established concerning agency follow up on IRS Error Listings (CP2100 Notices)?
			7. Do agency policies and procedures require that Backup Withholding take place as required by IRS regulations?
Comments for section A. (please specify question number)

Note: The remaining questions concern individual Information Return Reporting Forms. 1099-A
B. Recording and Execution of Transactions and Events:
Yes	N/A	No
			1. Does the entity lend money secured by property? (Property meaning real, tangible or intangible.)
			2. Has your agency ever acquired an interest in property in full or partial satisfaction of debt on that property?
			3. Has your agency ever acquired an interest in loaned property for the reason that you had money on that property and the property was subsequently abandoned?
			4. If yes to 2 or 3 above, did you issue IRS Form 1099-A?
			5. If Form 1099-A is issued, did the entity report the amount of indebtedness at the time of acquisition and the amount of indebtedness satisfied in the acquisition?
Comments for section B. (please specify question number)

1099-G
C: Recording and Execution of Transaction and Events
Yes	N/A	No
			1. Has the entity made payments such as unemployment compensation or state and local tax refunds at $10.00 or more?
			2. Has the entity withheld federal income tax under the backup withholding rules?
			3. Has the entity made any taxable grants under a program administered by a federal, state, or local program to provide subsidized energy financing or grants for projects designed to conserve energy?
			4. Has the entity made payments of taxable grants in the amount of $600.00 or more? (Including amounts your agency or university handled a nominee capacity such as Department of Agriculture payments.)
			5. Are 1099-G's issued for any yes answers to the above questions?
Comments for section C. (please specify question number)

1099-INT
D: Recording and Execution of Transaction and Events
Yes	N/A	No
			1. Does the agency have "pooled" funds held in a trustee capacity for students, inmates, patients, minors and others, that are invested in interest bearing accounts?
			2. Did the pooled funds earn interest of $10.00 or more for any individual payee?
			3. Does the actual owner's name appear on the interest information return prepared by the bank?
			4. If yes to questions 1 and 2, did the agency issue a 1099-Int?
			5. If yes to question 3, did the agency inquire with the bank whether or not the bank issued the appropriate 1099-INT?
Comments for section D. (please specify question number)

1099-MISC
E: Recording and Execution of Transaction and Events
Yes	N/A	No
			1. Did the entity make payments of $10.00 or more for royalties?
			2. Did the entity make payments of $600.00 or more for rent, including rent of office space, machine rentals, pasture rentals etc.? (Public housing agencies must report rental assistance payments made to owners of housing projects.)
			3. Did the entity make payments of $600.00 or more for fees, commissions, or other forms of compensation to persons not treated as your employees for services rendered in your trade or business?
			4. In connection with medical assistance programs, or health, accident and sickness insurance programs, make payments of $600.00 or more to physicians or other suppliers or providers of health care services?
			5. Did the entity withhold federal income tax on miscellaneous income under the backup withholding rules?
			6. If yes to the above questions, did the entity issue a 1099-MISC?
Comments for section E. (please specify question number)

1099-S
F: Recording and Execution of Transaction and Events
Yes	N/A	No
			1. Did the entity have a transaction that consisted in whole or in part of the sale or exchange for money, indebtedness, property, or services, or any present or future ownership interest in the following: a) Improved or unimproved land, including airspace; b) Inherently permanent structures, including any residential, commercial, or industrial building; c) A condominium unit and its appurtenant fixtures and common elements, including land; d) Stock in a cooperative housing corporation; or e) Payments of timber royalties made under a"pay-as-cut" contract, reportable under section 6050N.
			2. Did the entity purchase real estate under threat or imminence of seizure, requisition, or condemnation is generally a reportable transaction?
			3. Was the purchase generally a reportable transaction for a governmental entity?
			4. Was the entity or employees, responsible for closing any real estate transactions under the real estate reporting hierarchy?
			5. If yes to the above questions, did the entity issue a 1099-S?
Comments for section F. (please specify question number)

1098
G: Recording and Execution of Transaction and Events
Yes	N/A	No
			1. Did the entity receive mortgage interest of $600.00 or more from an individual on any one mortgage during the year? (This includes a governmental unit and a cooperative housing corporation receiving mortgage interest of $600.00 or more from an individual.)
			2. If yes to above, did the entity issue a form 1098?

Comments for section G. (please specify question number)

By clicking the Submit button, I do hereby certify, to the best of my knowledge, that the answers provided in this self-assessment of internal control is a true representation of the operations of this department.

Updated: Friday, July 22, 2005

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