Finding Text
• Criteria or specific requirement: Proper Documentation Finding 2023-1
• Condition: Document management and retention polices need to be
implemented and adhered to. Certain documents were
either missing or difficult to obtain.
• Context: At times requested documents were not found or were
only found after an exhaustive search.
• Effect: Internal control polices and procedures with respect to
document management and retention are not sufficient or are not in place which can affect the financial statements.
• Cause: Management has not instituted nor monitored a proper
document retention policy.
• Recommendation: Management should develop and consistently monitor a
document retention policy and ensure that the procedures are adhered to.
Management’s response: Mesa maintained an Amazon account that was used for the
purchase of approximately 20 small office supply orders totaling $2,170. This account was closed and access to receipts were lost. MESA utilizes a Missing Receipt Form in the event that a receipt is not available. This form was used in the case of these missing Amazon purchase receipts. On three (3) occasions, MESA did not have easy access to physical invoices for manual labor that were ultimately identified. On one (1) occasion, MESA was not able to identify an invoice associated with the delivery of an item. A Missing Receipt Form, evidence of communication regarding the services rendered, and
cost associated with the delivery was utilized to document
the expenditure.