Finding Text
Criteria
The building leader and the business office approve invoices.
Condition
Controls in place were not adequate to ensure that expenditures were approved by the building leader.
Context
During our testing, we noted multiple invoices without proper approval.
Cause and Effect
The established internal control procedures related to approving an invoice were overlooked in several instances. The effect of unapproved invoices can cause unauthorized disbursements or budget overruns.
Recommendation
We recommend that the Academy implement procedures to ensure each invoice has the proper approval before payment.
Management’s Response
Management has procured New ERP software that supports clear invoicing and purchasing approval processes within the system. Management will have individual training with building leaders to refine the purchasing approval process through the new accounting software, as well as training with front office staff on the collection of the appropriate paperwork upon receipt of deliveries.