Finding Text
A. Internal Control: ML ? 2022-01 Purchase Orders Criteria: The Organization?s financial policies and procedures require that for most purchases, a purchase order be made and approved by the appropriate level of management before the order is placed with a vendor. Only certain purchases such as utilities are exempt from this requirement. Condition: While the Organization did use purchase orders consistently on all purchases tested, we noted one instance where the purchase order was issued after the purchase was made. Cause: The Organization?s policy regarding purchases orders were not followed for one purchase tested. Effect: Although not noted in any of the items tested, failure to follow the Organization?s policy may lead to unauthorized or improper purchases. Recommendation: We recommend that the Organization adhere to the purchase order policy and provide additional training and oversight as necessary. Views of Responsible officials: See corrective action plan for views of responsible officials.