Finding Text
2023-003 Lack of Support for Credit Card Charges for Former Employees
Significant Deficiency
Criteria – Management is responsible for establishing and maintaining internal controls over organizational credit cards in order to safeguard the assets of the Organization. A key element of internal control is the review and approval of supporting documentation submitted by employees for credit card transactions.
Condition – The Organization designed a control which required documentation, review and approval for credit card charges. However, this control was not enforced and credit card charges were paid by the Organization without any support showing the costs related to the Organization.
Cause – During the transition between Executive Directors, the Interim Executive Director waived this requirement to increase morale.
Effect – The Organization may have reimbursed costs that were not for the benefit of the Organization.
Recommendation – We recommend the Organization reinstate the policy and educate its employees regarding Organization credit card charges, and then make sure to enforce the policy. The Organization should consider reviewing and updating their policies and procedures.
Auditee's comments and response – Management agrees with the finding. Management has re-instated the credit card receipt policy and has begun to enforce this policy. Management is also taking action to review current policies and procedures surrounding employee credit cards and reimbursements.
Responsible party for corrective action: Laura Straw, Finance Director
Repeat Finding: No