Finding Text
Criteria: The policies and procedures of the City state that invoices must be approved by the department head or an individual who has been given authority by the department head before payment is made (with the exclusion of utilities and other data sensitive billings).
Condition: During our testing of internal control over compliance, we identified two invoices to which approval was not properly documented prior to payment.
Cause and effect: The lack of approval documented on the identified invoices indicates that payments can be made to vendors without being approved by department heads or individuals who have been given such authority by the department head.
Identification of repeat finding: This is not a repeat finding.
Recommendation: The City should follow established policies and procedures concerning obtaining approval prior to payment.
View of responsible officials: The City does not concur – see corrective action plan..
View of responsible officials: The City of Homewood, Alabama will strive to submit its Single Audit Reporting Package to the federal audit clearinghouse no later than nine months after the fiscal year end for all future funds received from the federal government.