Finding Text
Internal Control Material Weakness - Credit Card Transactions
Criteria: Management is responsible for implementing proper internal controls surrounding the cash
disbursement and expenditure process, including maintaining related invoices and receipts, documenting
approval of the expenditure and general ledger coding, and recording all credit card transactions into the
general ledger.
Condition: During our audit, we noted The Baltimore Station, Inc. (the Station) failed to maintain invoices
or receipts for certain credit card transactions.
Cause: Lack of oversight of credit card transactions in which receipts and invoices were unavailable for
each transaction.
Effect: Failure to properly review transactions could result in misuse of credit cards.
Recommendation: We recommend the Station revisit their policies and procedures for credit card usage to
ensure all invoices or receipts are maintained, disbursements and general ledger coding are reviewed and
approved, and all transactions are recorded timely and reconciled to the monthly statement.
Management's Response: See Corrective Action Plan