Report on and Audit of the Disbursements Process fo the City of Tallahassee

REPORT ON AN AUDIT OF THE DISBURSEMENTS PROCESS AUDIT PROJECT #9802 Roberta McManus, CPA, CIA, CGFO Interim City Auditor Joanne Becknell, CIA, CGFO Acting Senior Auditor Gordon R. Klein, CISA, CGFO Auditor II Auditor-In-Charge AUDITING DEPARTMENT March 1999 Table of Contents TABLE OF CONTENTS I. SCOPE AND OBJECTIVES............................................................................................1 II. METHODOLOGY ..........................................................................................................2 III. BACKGROUND............................................................................................................5 IV. CONDITION STATEMENTS AND MANAGEMENT ACTION PLANS ...............10 A. The City should strengthen controls to prevent duplicate payments ............10 1. Valid receiving reports.............................................................................13 2. Documentation authorizing payments......................................................14 3. Cancellation of paid invoices...................................................................15 4. Detailed requisitions/POs.........................................................................16 5. Invoice routing .........................................................................................17 B. The City should strengthen internal controls to ensure the integrity of financial reporting...................... ...