Rachlin, Cohen & Holtz # 1 - Laserfiche WebLink

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VILLAGE OF ABC, FLORIDA SCHEDULE OF FINDINGS AND <2UESTIONED COSTS Reportahle Condition 06-0J Village Credit Cards Condition When performing a test over the process of the Village personnel and their use of Village issued credit cards, we noted in various instances that there was no support attached or in adequate SUPPO[1 attached to the credit card statement identifying the business purpose of the transaction. In those instances, sign offs of responsible officials were noted on the credit card statement In addition, we noted that the Village docs not have a written credit card policy so there is no standardized adherence to Village policies and procedures. Criteria The Village has the responsibility to safeguard their assets from loss or misuse. Ca II S e Lack of adequate internal controls over credit cards stemming from lack of a written defined policy. Even with a formal policy, internal controls would havc to be in place to ensure compliance with the stated pol icies. Effect Inadequately supported transactions of expenses paid with the Village credit cards. Recommendation We recollllllcnd that the Villagc establish written policies and procedurcs for the proper safeguarding and usage of the Village credit card. Examples of what the written policy may include are as follows: adequate oversight and internal controls should include safeguarding the actual credit card; ensuring only authorized personnel havc access to the credit card; sufficient documcntation of all credit cards purchases should bc maintained in the form of invoices ~\l1d/or reccipts and in the rare instance where a receipt is lost or cannot be obtained, s sign off by a responsible Village omcial; monthly credit cards statcments should be reconciled to the receipts on hand by a person other than the individual who are authorized to usc the crcdit card and documcntation should support a valid business purposc; payments should be remitted to the credit card vendor in a timcly fashion to avoid late fees and charges. Compliance 06-02 Cash Dishu rsements Condition When performing our tests over cash disbursemcnts, we noted aile (I) instancc whcre a check for $160,000 was not signed by two authorized signatories as prescribed by the Village's Resolution. Also, we noted two (2) checks that were less thall $10,000 each hadllo signature and werc cashed by the bank. " - .)-