Strengths
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Weaknesses
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Authorization
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Excel has a formal statement of policies and procedures for agent reimbursements.
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There is no limit on the agent’s total weekly expenditures or cash advances.
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Expense reports must be approved by the Branch Manager prior to payment.
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Expense reimbursement checks are sent to the Branch Manager for distribution rather than to the agent. This allows the Branch Manager to submit a fictitious expense reimbursement for a former agent or one on vacation and then cash the check.
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Recording
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Accounting receives approved expense reports and cash advance forms. This facilitates the correct recording of all authorized transactions.
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The Branch Manager does not retain a copy of expense reports or cash advances for audit purposes.
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The expense report is not checked for mathematical accuracy.
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Safeguarding
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Expense reimbursement checks are issued by the cash disbursements department.
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A copy of the Cash Advance Approval form should be sent to the Branch Office Cashier so it can compare it with the one submitted by the agent.
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Cash disbursements are made only after receipt of an approved expense report or Cash Advance Approval form.
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Supporting documentation is not required for all expenditures.
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Reconciliation
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Internal Audit compares reimbursement checks with expense report totals less cash advances in the home office.
Reconciliation differences are investigated.
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There is no reconciliation of Branch Office Cashier disbursements with Cash Advance Approval forms.
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