Finding Text
Condition:
The Organization did not obtain detailed receipts to support certain employee reimbursements.
Criteria:
Controls are not in place to ensure all reimbursements are properly supported and classified.
Cause:
We noted that the Organization self-constructed several assets during the year which included
construction supplies purchased directly by the Organization’s employees from a local vendor
using personal funds. Documentation was then submitted to the Organization for reimbursement.
We noted certain instances where the employee reimbursement requests were supported by
monthly statements of account rather than itemized invoices.
Effect:
Amounts may be reimbursed without proper supporting documentation and items purchased may
not benefit the Organization.
Recommendation:
We recommend the Organization request and receive detailed invoices for all employee
reimbursements which include amounts, descriptions of items purchased, and delivery locations, if
applicable. We also recommend the Organization pay vendors directly when a significant project
is undertaken.
Views of Responsible Officials and Planned Corrective Action:
Corrective action has already been taken. Appalachian Headwaters requests and receives detailed
invoices for all employee reimbursements which include amounts, descriptions of items purchased,
and delivery locations, when possible. Appalachian Headwaters pays vendors directly whenever
possible.
Context:
Of 25 expenses selected for testing, a reimbursement to the employee of $18,752 was determined
to be a duplicate payment for an earlier reimbursement. One of the payments was supported by a
summarized statement of account from the vendor, and further analysis of the vendor’s statements
indicate that the duplicate payment was not credited to the Organization’s account.
Questioned Costs:
N/A - Below reporting threshold.