Weakness
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Recommendation
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There are no controls over branch managers issuing emergency purchase orders. The branch manager can decide when an "emergency" exists and she is permitted to choose a vendor subjectively. This opens the door to fraud and errors.
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A procedure for expediting emergency orders should be developed for the purchasing department that contains appropriate controls.
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Invoices are paid without agreeing them to purchase orders and receiving reports. Making payments without this comparison could result in payments for goods that were not ordered or that were not received.
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Require proper authorizations and verification documentation (agreement of invoices, purchase orders, and receiving report) prior to payment.
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There is no supporting documentation attached to the checks when they are forwarded to the treasurer for payment.
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Checks sent to the Treasurer for signature should be accompanied by all original supporting documents (invoice, purchase order and receiving report) so the Treasurer can verify that the payment is valid and appropriate.
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The supporting documents are not canceled after payment, allowing the possibility of a second payment of the same invoice.
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The invoices and other supporting documents should be canceled after the checks are signed.
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