Finding Text
Criteria : Internal controls should be in place that provide for properly documented review and approval of federal
expenditures by an appropriate level of management outside of the accounts payable and cash disbursement
process. This is a repeat finding.
Condition: During our audit, we noted that there is a lack of segregation of duties in the accounts payable and
cash disbursement process. We noted that one employee had the ability to receive invoices, record expenses in
the general ledger, write and sign checks, and reconcile internal accounting records.
Cause: Due to a limited number of staff, incompatible work functions in the accounts payable and cash
disbursements process were performed by the same individual and lacked the appropriate review and approval
by an individual outside of that immediate accounting function.
Effect : Cash disbursements were processed for payment that lacked a documented review and approval by
management personnel.
Recommendations: We recommend that the functions associated with accounts payable and cash
disbursements process be segregated to the extent possible. All invoices should have a documented approval
for payment by management personnel outside of the accounts payable and cash disbursements function.
Views of Responsible Officials and Planned Corrective Actions: The Authority acknowledges the finding and has
implemented procedures to address the items noted.