Impacted Requirements: Approval for credit card expenditures must be obtained before any purchases are made.
Recommended Follow-up: Implement procedures for written approval on all credit card expenditures to prevent fraud.
Finding Text
Significant Deficiency. As discussed in Finding 2024-001, approval/authorization for credit card expenditures are
required before purchase. Some credit card transactions were discovered to not be approved during our audit
procedures. Because of the failure to require approval from the proper level of management, fraudulent purchases
could be made without knowledge of management. Procedures should be implemented requiring written approval
of all expenditures.
Corrective Action Plan
Management intends to revise purchase order
policies and procedures included in our finance policies and procedures to ensure that purchases receive prior
approval before the purchase is made.