Audit Objective 

Determine whether the Neptune Hose Company No. 1 of Dryden, Inc. (Company) disbursements were supported and properly authorized. 

Key Findings 

Company disbursements were not always supported or authorized prior to payment. We reviewed 171 disbursements totaling $381,186 and determined that 34 (20 percent) totaling $30,126 were not processed in accordance with the Company’s accounting manual. These disbursements had one or more issues, such as improperly authorized purchase orders or were unsupported. 

• Twenty-three disbursements totaling $24,875 were improperly authorized. Ten disbursements totaling $18,974 were approved after payment was made, six disbursements totaling $4,530 lacked a payment authorization date, and seven disbursements totaling $1,371 were not adequately supported. 
• Sixteen disbursements totaling $6,564 lacked adequate support such as itemized receipts or invoices. 
• Five Company members received unsupported mileage reimbursements totaling $2,573. 

Because disbursements were not always authorized or supported, officials approved payments without having sufficient documentation to support the expenses were appropriate and increased the risk for inaccurate or improper transactions. 

Key Recommendations 

• Adhere to the Company’s accounting manual. 
• Ensure all disbursements are adequately supported before they are paid. 

Company officials agreed with our recommendations and indicated they have begun to initiate corrective action.