Common audit issues

Deposits not made within 7 days of collection.

Ø     According to Wisconsin State Statute 20.906 (1): "Frequency of deposits. Unless otherwise provided by law, all moneys collected or received by any state agency for or in behalf of the state or which is required by law to be turned into the state treasury shall be deposited in or transmitted to the state treasury at least once a week and also at other times as required by the governor or the state treasurer and shall be accompanied by a statement in such form as the treasurer may prescribe showing the amount of such collection and from whom and for what purpose or on what account the same was received. All moneys paid into the treasury shall be credited to the general purpose revenues of the general fund unless otherwise specifically provided by law."

Invoices being approved by initials.

Ø     Initials are easily forged and could allow for unauthorized payments. Invoices should have a signed approval.

Lack of supporting documentation for deposits.

Ø     Supporting documentation should be kept for all deposits so that they can be reconciled and to leave a good audit trail.

Expenses and revenues are not reconciled to the financial statements.

Ø     Expenses and revenues should be reconciled to the financial statements to ensure that the transactions are being processed for the correct amounts.

Inventory records not properly maintained.

Ø     There should be a inventory record set up to track inventories. The inventory record should be updated regularly to ensure its accuracy. Properly maintained inventory records help to safegaurd an organization's assets.

Ø     Capital equipment inventory records should also be updated regularly to ensure their accuracy. For a current definition of what is considered to be capital equipment go to http://www.uwsa.edu/fadmin/fppp/fppp33.htm.