A report on Carson City’s accounts payable process found a few areas for improvement.
The Audit Committee on Wednesday heard a report on testing of internal controls for the city’s purchasing and accounts payable by its internal auditor, Moss Adams LLP.
The auditor found issues with the process for verifying that goods and services paid for have been received.
In a sample test of 40, the firm found 32 exceptions.
The committee gave staff direction to follow up with another step in the process to document when goods or services are received.
The committee makes recommendations to the Board of Supervisors.
Another problem discussed was duplicate payments made to vendors when a good or service is paid for by a purchasing card and an invoice is subsequently received and paid.
The firm’s testing found one instance out of 40, and Nancy Paulson, Carson City chief financial officer, said it happens probably twice a year and the city has always received a refund from the vendors.
The problem, she said, is the purchasing card payments are processed monthly so invoices can come in and be paid before the p-card transaction is processed. But Paulson said once payments are processed any duplicates are flagged by the system.
The Audit Committee also determined areas of focus for Carson City’s internal auditor in 2018.
The projects include testing of internal controls for grants, which will also include a look at the city’s travel processes as grants pay for the bulk of it; large public works projects; and a look at security of financial systems.
The internal audit works it way through all city financial processes and the committee recommends the projects to the Board of Supervisors.