Finding 1182083 (2025-001)

Criteria The Organization is responsible for the design and implementation of internal controls including controls over purchases. Condition The Organization's policy over credit cards is that the financial director or designated cardholder for each location will provide (or check out) cards to staff members for specific purchases as needed upon written request. The cards and all receipts are to be returned to the finance director when purchases are complete. The financial director or designated cardholder has authority to approve purchases up to $100. The executive director must approve any written requests for purchases over $100 up to $5,000. Anything over $5,000 is subject to board approval. Context During the audit, it was noted that the credit card purchasing policy regarding approvals was not being followed. Cause Management did not enforce the policy over credit card purchases as written. Credit card purchases are being made without approval. Recommendation We recommend that the Organization establish a more in depth approval process for all credit card purchases to enhance control over expenditures and reduce the risk of unauthorized or inappropriate purchases. The Organization should also reinforce policy awareness to all employees through training.