The internal controls over APS' Purchasing Card Operation are weak or non-existent. Transaction logs are not always received in a timely manner and sometime are recorded without proper review as to propriety of expenditure or account nature. Detailed receipts are never filed nor referenced to vouchers in Finance Division. Thus, specific transactions are generally not recorded nor reference to the general ledger. Vendor names do not appear on any accounting entries to the Management Information System.
Limited data is received and reviewed in Finance to ensure accurate recording of fixed assets.
Thus, fixed assets purchased may not be recorded and financial statements overstate operating expenses and understate fixed assets. This practice increases the risk of asset losses. The existing system of internal control over fixed assets purchased with the purchasing card is very weak or non-existent. No signature for approval appears on the Transaction Log for payment authorization. Require cardholders to adhere to prescribed policies and procedures to acquire fixed assets.