Finding Text
#2023-002 – Material Weakness – Compliance Requirement Activities - Allowed or Unallowed
Abandoned Mine Land Reclamation Program 15.252
Criteria
Proper internal control procedures include review and approval of expenditure documentation such as purchase orders and invoices prior to entering expenditures into the system for payment processing. Invoices should also be reviewed for mathematical accuracy to ensure that the Commission and the grant are properly charged.
Condition
For one of the six payments examined, there was no approval of the supporting invoice or purchase order. Approval occurred with the check signature of the Director of Administration and Finance. In addition, for two of the six payments, the invoices had mathematical errors.
Cause
Due to oversight, one payment was not approved in accordance with the Commission’s internal control procedures, prior to submission for payment. Additionally, the Commission does not have procedures in place to review invoices for mathematical accuracy prior to payment.
Effect
Lack of review and approval of invoices can result in unallowable costs charged to the grant program.
Questioned Costs
None
Perspective Information
The Commission recalculated all invoices from the vendor and noted four invoices with errors during the year ended June 30, 2023, resulting in an overcharge to the grant of $1,001.
Identification as a Repeat Finding
There was no similar finding in the prior year.
Recommendation
We recommend that the Commission approve all invoices in accordance with the Commission’s internal control procedures. We also recommend that the Commission review invoices for mathematical accuracy prior to payment.
View of Responsible Officials and Planned Corrective Action
The Commission has contacted the vendor to resolve the billing errors and will implement procedures internally to oversee the verification of the accuracy of invoices going forward.