[read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the School’s controls over debit card use for the period July 1, 2015 through February 28. 2017.

Key Findings

• The Board did not establish a comprehensive policy for debit cards to help ensure all charges were adequately supported and for business-related purposes.
• None of the debit card purchases included purchase requisitions or purchase orders to indicate prior approval or any indication that the Board reviewed charges.
• Although the School is exempt from paying sales tax on purchases, the Executive Director and Director of Finance repeatedly paid sales tax on debit card purchases.

Key Recommendations

• If the Board intends to continue the use of debit cards, adopt a debit card policy that describes the types and circumstances of the purchases allowed and provides guidance on the documentation required to support purchases.
• Ensure that purchases using debit cards are supported by purchase requisitions or purchase orders and evidence that the charges have been approved and reviewed by the Board.
• Minimize the use of debit cards for purchases where sales tax is incurred.