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Audit Objective

Determine whether claims were properly audited prior to payment.

Key Findings

• The Board has not adopted a cash disbursement policy.
• Twenty-four claims totaling approximately $7,300, out of the 72 claims totaling approximately $524,000 in our sample, were not audited and approved by the Board prior to payment.

Key Recommendations

• Develop and adopt a cash disbursement policy to ensure all claims are subjected to an independent, thorough and deliberate review. Such a review should ensure that every claim contains enough supporting documentation to determine whether the amount to be paid represents actual and necessary expenditures.
• Ensure all claims are audited and approved prior to payment.

District officials agreed with our recommendations and indicated they planned to initiate corrective action.