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Audit Objective

Determine whether the claims auditor audited and approved claims before payment.

Key Findings

The claims auditor did not:

• Receive claims paid by check disbursement for audit and approval until after payment and did not receive claims paid electronically for audit and approval.
• Audit and approve 116 claims we reviewed totaling $1.9 million (19 percent) until after the claims were paid, including five claims for travel reimbursements totaling $1,260 that were not submitted for payment within District policy timeframes.
• Audit and approve 20 electronic payments for credit card charges totaling $11,600 and nine postage claims totaling $11,442.

Key Recommendations

• Ensure all claims against the District, other than those allowed under law, are presented to the claims auditor for audit and approval before payment.
• Ensure each claim is accurate, properly supported, for a valid purpose and in compliance with required statues and policies.

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