Finding 3192 (2023-002)

2023-002: Internal Control Purchase Order Approval Criteria: The District should follow its Grant Management Procedures over requisition and purchase orders. Condition & Cause: During our testing over grant expenditures, we found 2 out of 25 transactions tested, that the invoice date preceded the date of the final approved purchase order. Additionally, we found that for one project, the District was not preparing and approving the appropriate supporting vouchers, including signed perjury statements, for payments subsequent to the originial voucher/payment on the project. Effect: The District could make purchases prior to proper authorization. Repeat Finding: No. Recommendation: In accordance with the District's policy, the District should not receive goods and services prior to final approval of the purchase order. Additionally, the District should prepare a separate voucher for each individual check/payment. Responsible Official's Response: Please see the last page for maangement's response as prepared on District letterhead.