Audit Process

Overview


The purpose of conducting an audit is to review cardholder transactions and department’s business processes for efficiency and policy compliance, including but not limited to:

  • Adequacy of supporting documentation and retention of required backup documentation.
  • Proper application of sales and use tax
  • Timely reconciliation and approval of purchases
  • Compliance with policies concerning training, restricted items, personal use, split purchases, conflict of interest, and entertainment expenses
  • Monitoring for fraudulent/suspicious activity

Depending on the outcome of our audit results, we will recommend, evaluate, and follow up on any action plans required of the user's department to lower the level of errors and increase policy compliance through additional training. In addition, a follow up audit may be necessary and/or we may pursue further action depending on the severity of the audit results.

 

The Process


Audits are conducted throughout the year. When a transaction is selected for assessment, the department is contacted by email with a request for scanned copies of supporting documentation. The department is generally allowed one week to provide documentation, including supporting documents for the specific transaction.

Departments are required to provide transaction documentation to the card program staff upon request. Penalties may apply for individuals and/or department found to be out of compliance.

Upon completion of the assessment, findings and recommendations are sent by email to department management and the individuals involved. Periodic reports will be provided to campus and department administration to summarize findings and analyze compliance.

Common Audit Observations:

•    Failure to properly reconcile sales and use tax
•    Failure to reconcile and/or approve transactions and late approvals
•    Safeguarding card account numbers
•    Incomplete or lack of Meeting and Entertainment (supplemental form)

 

Consequences of Non-Compliance


Depending on the type of policy infraction(s) found, penalties may apply to cardholders, and/or approvers. Repeated non-compliance will result in an escalating series of consequences, including notification to
higher levels of administration.

There may be consequences for the business unit as well, depending on the frequency, severity and scope of the problems found. All penalities are enforced at the discretion of Card Program Services including:

•    A written warning
•    Temporary suspension of Cardholder’s account
•    Revocation of P-Card and delegated purchasing authority
•    Additional action by the Cardholder’s department
•    Individual could be held criminally liable
•    Retraining