As noted, KSU accounting system (Banner) has general controls currently in place that does not allow requisitions (auto rejects) which are overbudgeted to be processed without; 1. budget transfer and/or 2. budget override. Only authorized approvers can perform overrides (mitigating control) once approved from VP of Finance and Administration/CFO.
When the requisition is over budget the original requestor must submit a budget transfer to the budget manager; the requestor is not permitted to make their own transfers. The budget manager obtains prior approval from the VP of Finance and Administration/CFO prior to making the transfer.
KSU will implement monitoring controls to ensure purchase orders are not circumvented. Monitoring controls are actions performed at the management level designed to provide assurance that information on the operations is appropriate, appears reasonable, and is consistently prepared.
KSU has implemented a monitoring internal control for invoices without PO's. The Controller has established a process in which exception reports are reviewed for any invoices without a PO. We will continue to reenforce adherence to the stated policy of "NO PO, NO PAY".
KSU has conducted training on procurement processes and procedures noting exceptions.
KSU is in the process of revising the credit card policy to include review and approval of credit card purchases.
Upon reviewed of reliance on credit cards to meet daily operational needs, KSU has decreased the usage of credit cards. All credit card purchases are required to be reviewed and approved by supervisors. Also, the Purchasing Director and AVP of Finance and Administration have initiated a second level of review and approval which requires supporting documents for justification of purchase. Additionally, credit card usage by executive level staff, including the president, shall be routinely reviewed by internal audit and a report made periodically to the