Determine whether internal controls over the claims audit and payment process were adequately designed and operating effectively.
- The Board of Supervisors (Board) and the Board of Health (BOH) did not audit their respective claims before payment.
- Our review of 382 claims totaling $3.5 million disclosed that 121 claims totaling $752,749 lacked adequate support or documentation showing receipt of goods or services. In addition, claims totaling $1.3 million were paid without Board approval.
- The Treasurer did not control the check signing process for computer generated checks and allowed a credit card vendor to directly withdraw $1.9 million in monthly payments from a County bank account.
- Ensure all claims are audited and approved prior to payment when required by law.
- Ensure all claims contain sufficient detail and supporting documentation prior to approval.
- Ensure the Treasurer controls her signature when it is applied to checks.
- Discontinue allowing the credit card vendor to directly withdraw funds from County bank accounts.
County officials disagreed with certain aspects of our findings and recommendations, but indicated they have initiated or planned to initiate corrective action. Appendix B includes our comments on issues raised in the County’s response letter.