Finding Text
Repeat of prior year findings: 2024-001 Criteria: The Corporation should ensure internal controls surrounding expenditure requisitions are followed by staff to ensure accruals of expenditures are timely recorded. Condition and Context: The property manager did not timely submit expenditure requisitions to the business office and authorized expenditures prior to receiving authorization. Upon receipt of the invoices for the expenditures, the business office reviewed and challenged the costs resulting in delayed recording of accruals and expenditures in the wrong period. Effect: Expenses of $8,237 were recorded in the wrong period. Cause: Property manager not following policies and procedures and untimely invoicing by the vendors. Recommendation: The business office should continuously train and enforce policies and procedures to ensure internal controls are followed by staff throughout the organization. Views of Responsible Officials and Planned Corrective Action Plan: The Controller meets monthly with IHC management team to review financial statements along with requisitions and approvals for open Po’s/Invoices. During this time, she also reviews whether there are services rendered that were not entered as a requisition or for which we did not receive a check request. The property management team will alter how the requisitions are done. The property manager in the field will send notification to Operations Managers each time a vendor is called to perform a service at the location. The Operations Manager will enter a default requisition to alert the Business Office. This will then be in our system to validate an accrual is made and/or contact vendor or IHC staff to obtain invoices from vendor. There are some vendors who are smaller or less automated in their own processes. This sometimes creates a large gap from time service if performed to when they invoice Inglis.