Final Paper

Executive Summary:

Introduction:

1) Lack of Training on System of Record:

2) Separation of Duties

3) Discover card Convenience Checks:

4) Rubber Stamping:

5) Lack of Audit:

While Joe

Body

The

This is part of the fraud investigation report and below individuals were interviewed.

Procedures:

In addition to conducting interviews, the fraud investigation team reviewed the current procedures in the areas procurement and payroll.

Procurement:

1. Supervisor completes Purchase Order including the following required information and sends to Accounting Technician for processing:

a. Recommended Vendor

b. Description of item (s) or services required.

c. Quantity

d. Estimated price per unit

e. Budget/Accounting Code

f. Signature and date

2. Accounting Technician

a. Receives Purchase Order

b. Enters Purchase Order Number and date into Purchase Order Journal

c. Determines Verifies inventory isn’t sufficient to meet request

d. Determines purchase process

i. Small purchase under $100 – Non-competitive local purchase

ii. $100 - $499 – Documented price comparison

iii. Over $500 – Financial Manager approval to solicit at least 3 formal competitive bids.

iv. Financial Manager approval signature on Purchase Order

e. Orders item/service via copy of Purchase Order

f. Receives supplies and initials packing slip.

g. Accepts services as completed and initials vendor invoice

h. Files all paperwork in individual vendor file

i. Notes items or services received on office copy of Purchase Order.

3. Posts Accounts Payable

i. Credits account Payable

ii. Debits Asset Account

4. Processes Invoice

a. Compares invoice to packing slip/purchase

b. Processes electronic payment or cash payment (Petty cash fund)

c. Debits Accounts Payable

Credits Cash

(Field Offices require prior approval to use local checking accounts.)

Payroll:

1. Employee completes time sheet

a. Name

b. Employee Number

c. Date of work charged

d. Organization Code

i. 000 –Headquarters

ii. 001 – 010 Region Number

iii. 01 – 052 – Field Office See Organization Manual

1. Note Wyoming is 050

e. Activity code

i. 0001 –Administration – fill out time for administration

ii. 002 - Vacation

iii. 003 - Sick Leave

iv. 004 - Comprehensive Leave – paid by more time off they will 90 hours per week and they wont work on summers

v. Survey

vi. Design

vii. Construction

viii. Other – Explain in comments section on back

f. Comments: Add comments including name/location of training

g. Signature and date submitted to supervisor

2. Supervisor

a. Sign and date

3. Accounting Technician

a. Review for completeness

b. Enter into Payroll System

c. Initial and date

d. Prepare ad hoc payroll reports as requested

Results

Procurement:

Payroll:

Follow-Up Recommendtions:

Conclusions in Report: