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(E)

(F)

Villisca Municipal Power Plant

Schedule of Findings

Year ended December 31, 2003

Response – We will have all bills presented for review and initialed by a Board member. We will have as a monthly agenda item at the Board of Trustees meeting, the review and approval of cash disbursements. Following the signature of the second person, invoices will be stamped paid and initialed. Disbursements will not be allowed to be paid without supporting vouchers and invoices. We will also acquire a copy of a near by County’s policy on travel and training, to use as a guideline.

Conclusion – Response accepted.

Credit Cards – The Power Plant approved the use of a credit card by certain employees

while on Power Plant business.

The

regulate

the

use

of

credit

cards

and

to

Power Plant has not adopted a formal policy to establish procedures for the proper accounting of

credit card supporting

charges. Total purchases of $2,705 documentation was not always

were made available.

with the credit card for which After obtaining supporting

documentation for certain charges, $103 of the charges were questionable. included as payments to Wal-Mart and Holiday Inn in finding 3.

They are

Recommendation – The Power Plant should adopt a formal written policy regulating the use of credit cards. The policy at a minimum should address who controls credit cards, who is authorized to use credit cards and for what purpose, as well as the types of supporting documentation required to substantiate charges.

Response – We will adopt a policy establishing credit card use including:

  • Recommending one account with two cards.

  • Credit cards are to be kept with the Secretary when not being used.

  • Receipts must support each transaction or the employee will be asked to

reimburse the Power Plant.

Conclusion – Response accepted.

Payroll – Time sheets were not approved/initialed by an independent individual to verify the actual hours worked. Also, hourly pay rates were not approved and documented in

the

minutes

record.

Additionally,

adequate

records

were

not

maintained

for

c o m p e n s a t o r y t i m e , v a c a t i o n o r s i c k l e a v e h o u r s f o r a l l e m p l o y e e s . T h e P o w e r P l a n t h a s the determined liability for earned sick leave and approximate vacation, not

compensatory time termination payments payable to employees at December 31, 2003. We were also unable to determine the propriety of the calculation of a compensatory time payout for one employee.

Recommendation – Time sheets should be reviewed by an independent individual to verify

actual hours worked.

Once reviewed, the independent individual

timesheet to document approval. Also, all wages its approval should be documented in the minutes

should record.

be

approved

should by the

initial

the

Board

and

In addition, the Power Plant should maintain adequate records documenting vacation, sick leave and compensatory time earned and used, so the termination payment payable or payout can be determined at anytime.

29

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