Finding Text
Type of finding: Significant weakness in Internal Controls over cash disbursements.
Condition: The Organization’s internal controls require a purchase order and or a check request for all non-payroll cash disbursements. When testing cash disbursements, it was noted this procedure was not always followed; however they did have an overriding control of review of bill, and allowability to budget before any checks were signed.
Criteria: Strong internal controls requires authorization and approval of all purchases made by the Organization.
Context: The Organization’s internal controls require authorization and approval for all non-payroll cash disbursements but they were not always followed.
Cause
Not following all the authorization and approval could allow an improper payment to be made.
Recommendation: Require all non-payroll purchases to have a purchase order and/or a check request.
Planned corrective actions:
The Organization had implemented a new purchase order system and have simplified the check requests to make it easier to follow and will use for all non payroll, and non reoccurring purchases.