Common Audit Issues
Deposits not made within 7 days of collection
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
Initials are easily forged and could allow for unauthorized
payments. Invoices should have a signed approval.
Lack of supporting documentation for deposits
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
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
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. 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.
