Finding Text
Criteria: Activities should be reviewed and approved to determine if costs are allowable prior to disbursement.
Condition: Two disbursements out of ten tested were not supported by a signed manifest.
Cause: There was a lack of oversight by staff in providing manifests for management signature.
Effect: This is a significant deficiency in internal control over activities allowed and unallowed, and allowable costs/cost principles.
Questioned Costs: N/A
Recommendation: We recommend that all manifests be approved by the Town Manager, or Assistant Town Manager in his absence, prior to release of funds.
Management’s Response: All manifests should have been and will be signed by management. We have started more internal training with the Accounts Payable department to ensure manifests are
signed.