Mattituck-Cutchogue Union Free School District - Claims Processing (2018M-131)

Issued Date
September 28, 2018

[read complete report - pdf]

Audit Objective

Determine whether claims were adequately documented, for appropriate purposes and properly audited and approved before payment.

Key Findings

  • The controls over claims processing were not always effective. As a result, the purchasing agent approved 12 purchase orders (6 percent) for purchases totaling $61,109 after the goods and services were ordered.
  • The claims auditor approved the claims for these 12 purchases with supporting documentation that included confirming purchase orders (i.e., purchase orders issued after the goods or services have already been ordered or received).

Key Recommendations

  • Enforce the District’s policy that does not allow confirming purchase orders.
  • Approve claims for payment after appropriate procurement policy procedures are followed.

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