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Audit Objective

Determine whether District officials provided adequate oversight of cash disbursements and payroll processes.

Key Findings

District officials did not implement adequate internal controls over disbursements and payroll duties.

• In our audit sample, 30 claims (11 percent) totaling $73,865 were not approved by the department head and 15 claims (5 percent) totaling $69,670 were not approved by the claims auditor.
• The senior account clerk’s leave accrual records contained errors, and her sick leave balances exceeded the contractual maximum by 111 days.

Key Recommendations

• Implement internal controls to verify that checks, wire transfers and payroll disbursements are accurate and appropriate.
• Ensure the claims auditor receives all claims for payment and requires adequate support for each claim.

District officials generally agreed with our recommendations and indicated they have initiated, or planned to initiate, corrective action.