COMMON AUDIT ISSUES
Non-Travel Cash Advance Review
We have completed our annual series of Non-Travel Cash Advance Reviews for 2006. We continue to find inadequate internal controls and problems with reconciliation in some departments.
A few had problems with inadequate internal controls. Proper segregation of duties means the person that performs the reconciliation and processes advance reimbursements does not have signatory authority.
Some departments are still unclear on the importance of the periodic reconciliation to the authorized amount. The custodian of an advance, or their delegate, must routinely reconcile the balance in the bank account to the authorized advance amount. Ideally this should be done right after the monthly bank reconciliation. For a description of the reconciliation process, refer to Reconciling your cash or checking account to your Authorized Advance Balance .
To assist you in effectively managing your authorized advance, we have created an easy-to-use Non-Travel Cash Advance Self-Assessment questionnaire. We strongly encourage you to assess your current practices and implement any changes needed to ensure good oversight.
Business Services News - June 2006