Synopsis of Internal Audit Report Findings

Synopsis of Internal Audit Report Findings #1 Financial Reporting Finding: Detailed, timely financial reports are not consistently provided to responsible persons, including Principal Investigators. Consequently, the responsible person does not have the opportunity to review the appropriateness of the financial activity recorded in FRS, the University’s official accounting system. As a result, the auditor found amounts inappropriately charged to University accounts (s/b University Foundation), personal expenses and unallowable purchases. Recommendation: Provide detailed monthly financial reports (FBM090 & FBM091) to responsible persons to enable them to effectively manage financial resources and to monitor for appropriate use of funds and errors in need of correction. Also, the responsible person should be provided with bi-weekly Payroll Expenditure Listings (PEL) to identify any erroneous personal services charged to their accounts. Learning Points: On a monthly basis, the responsible person for each account should perform a careful review of the FBM 090/091 report for transactional activity and account balances. If shadow bookkeeping reports are provided, they should be reconciled to the FRS account balance and any differences explained in detail. Payroll-related Risks Finding: Timekeeping records were not always prepared in accordance with University policies and signed by the employee and supervisor to show agreement ...