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Internal Audit Home 

  

Longwood University 
Internal Audit 
201 High Street 
Farmville, VA  23909 
Phone: (434)395-2283 
Fax: (434)395-2229 

1. Are the card(s) normally kept on site (locked drawer/safe) or carried by the authorized user (wallet/purse)?

• Ideal Answer: YES. Card location or card number should be accessible only for the authorized user(s).

2. Does on site location or authorized user (as specified in question one) provide adequate security?

• Ideal Answer: YES. Physically securing the card can reduce the risk of theft and unauthorized purchases.

3. Does the department maintain a current purchasing card (control) log?

• Ideal Answer: YES. A control log should be maintained to ensure all charges are accounted for and proper documentation retained.

4. Is all supporting documentation filed by cardholder, by date or a combination of both?

• Ideal Answer: YES. Supporting documentation must be traceable to each AMEX transaction in the event of an audit.

5. Are all receipts adequate enough to identify what was purchased?

• Ideal Answer: YES. All receipts should provide a clear explanation as to what was purchased for the site manager. If the receipt is not adequate enough to identify what was purchased (indecipherable description); the purchaser must add a description.

6. If purchases are made on this card and the charges transferred to other funds (especially federal grants or contracts); do you maintain proper documentation for the purchase and transfer?

• Ideal Answer: YES. The person requesting the purchase must submit a standard form that identifies the item, funding to be charged, and written authorization before the purchase is made. In the absence of a standard form, a department must require in writing (or by email) the same item, funding, and authorization information.

Only authorized individuals can approve expenditure of project funds. Therefore, any purchase to be transferred must be approved by an authorized individual.

7. Are all transactions conducted and charge receipts signed by the authorized cardholder or a designated user?

• Ideal Answer: YES. Only authorized users may sign for purchasing card transactions, including orders via web and phone.

8. Are all purchases appropriate; that is, according to the terms of the Longwood University Purchasing Cardholder Agreement?

• Ideal Answer: YES. See Materiel Management

9. Are cardholders appraised of the need to review statements on a regular basis?

• Ideal Answer: YES. Cardholder review of the statements assures proper accountability over all authorized charges. By routinely verifying, the cardholder can immediately identify any erroneous charges or abusive transactions. (i.e. compliance with state contracts, sales tax, etc.)

10. Does the cardholder know how to dispute an unauthorized charge?

• Ideal Answer: YES. It is critical to review your statement to identify any unauthorized charges, allowing disputes to be addressed in a timely manner.

11. Are source documents reconciled to statement on a monthly basis?

• Ideal Answer: YES. Reconciling the source documents (receipts) to the monthly statement assures proper accountability over all approved charges. By routinely reconciling, one can immediately identify any erroneous charges or abusive transactions.

12. Is the reconciliation done independently (i.e. the reconciler is not a "designated user" or has access to the card)?

• Ideal Answer: YES. There should be an independent reconciliation and review for appropriateness of supporting documentation to the statement on a monthly basis. The possibilities of errors and/or inappropriate charges could occur without your detection.

13. Is the reconciliation reviewed periodically by a supervisor or an independent party?

• Ideal Answer: YES. The occasional review and initialing of the reconciliation by a supervisor or independent party would accomplish this requirement. This provides oversight of the process to ensure it is being done, on a timely basis.

14. Has the card ever been charged for a purchase that was not received (a backorder) before the charge was paid.

• Ideal Answer: NO. In most cases, your card will not be charged until the goods are actually shipped. However, if this has happened, the receipt of the item or eventual credit (if not received) needs to be cross-referenced to the earlier purchase.

15. Is the departmental records retention period five years for supporting documentation?

• Ideal Answer: YES. Departments must maintain all records, receipts, logs, etc. on site for the current fiscal year (plus the 4 previous fiscal years).