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Audit Objective

Determine whether claims were adequately supported and properly audited before payment.

Key Findings

The claims auditor:

• Did not audit and approve 301 claims totaling more than $6.1 million before payment during the audit period.
• Did not sign the warrants on which 70 claims totaling $988,677 were listed to indicate audit and approval.
• Approved 16 claims totaling $835,152 for payment that were not sufficiently supported.

District officials did not:

• Ensure that the Board-adopted procurement policy was always followed.

Key Recommendations

• Ensure no claim, other than those allowed by law, is paid before audit and approval by the claims auditor.
• Conduct a thorough and deliberate audit of each claim before authorizing payment to ensure it is accurate and properly supported, and in compliance with required statutes and policies.
• Periodically report to the Board any deficiencies noted in the claims process.

District officials agreed with our recommendations and indicated that they have initiated corrective action.