Purchasing Card Audits
Purchasing Card audits are performed randomly, with higher volume cardholders
more likely to be selected due to both transaction and dollar volume. As
part of the audit, we review the source documents (original receipts) for
selected transactions, the related logs, and reports from the on-line Paymentnet
system. Our primary objective is to render an assessment of compliance with
University guidelines as well as those dictated in the Purchasing Card Policies
and Procedures. We also review the control system in place for card use,
approvals, and adequacy of the source documentation for the selected transactions.
To help you assess your own controls and compliance, the following are
recurring issues that have resulted in audit recommendations to improve
accountability and compliance.
Approvers:
• On-line transactions are not approved.
• The original receipts are not reviewed when transactions are approved.
This can result in approval of questionable or unallowable purchases.
• Approving transactions that do not have the business purpose readily
evident.
• The approver is also a cardholder and approving his/her own transactions.
Thus, even one purchase on the card would place the approver in a conflict
of interest since he/she would be passing judgment on his/her own card
activity.
• The approver does not question the propriety of transactions.
Cardholders:
• On-line transactions are not reviewed. This is a key control that
will immediately alert the cardholder to any unauthorized card transactions.
• The original receipts are not retained. If this is a recurring
problem and undocumented purchases cannot be clearly explained, card privileges
may be revoked. The cardholder can be held financially liable for purchases
without properly documented receipts.
• The business purpose is not documented when the receipt or the
order confirmation does not provide an adequate explanation. (Also, not
performing screen prints of items ordered on-line or printing the confirmation
notice.)
• The detailed receipt showing each item purchased is not retained.
• Using the card to pay for food at business meetings. The purchasing
card can not be used for meals at restaurants. In order to purchase food
for a business meeting, the meeting must be held in the department, there
must be a complete agenda, list of the participants, and an explanation
of why food was being provided.
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