Spring 2014 issue of Horizons

PUBLIC SECTOR

Analyze payments: ∙ Sent to P.O. boxes

Match the vendor master file against the employee master file on: ∙ Addresses to identify vendors with employees’ addresses ∙ Contact information (such as name or phone number) to identify vendors with employee relationships and/or shell companies set up by employees

∙ Split invoices and purchase orders below approval thresholds

∙ Timeliness of invoice payment

∙ Discounts taken

Search the cash disbursement register for unusual disbursements (based on description and time of day) RubinBrown recommends that management re-perform these analytics at least once a year. Each year, management can improve on the analysis by learning from the previous year’s results. The result will be a resilient set of controls over spending and vendor management that helps deter and detect abusive spending within your organization.

∙ Bank routing numbers to identify vendors with the same bank account as employees

Within the ERP system and/or the payment card system: ∙ Search for duplicate payments made to vendors based on the payment amount, date of payment and/or similar vendor names (such as XYZ, LLP and Xyz, LLC)

∙ Categorize and summarize disbursements/ payment by payment type and by vendor

Perform a variance analysis for: ∙ Purchase order amounts to invoice amounts

∙ Orders that are out of sequence or irregular dates

∙ Vendor balances greater than credit terms

RubinBrown’s Public Sector Services Group Through our extensive list of clients, including many cities and governmental entities, we understand the issues unique to the public sector.

Jeff Winter, CPA — St. Louis Partner-In-Charge Public Sector Services Group 314.290.3408 jeff.winter@rubinbrown.com

Cheryl Wallace, CPA — Denver Partner Public Sector Services Group 303.952.1288 cheryl.wallace@rubinbrown.com

Kaleb Lilly, CPA — Kansas City Partner Public Sector Services Group 913.499.4417 kaleb.lilly@rubinbrown.com

Ted Williamson, CPA — St. Louis Partner Public Sector Services Group 314.678.3534 ted.williamson@rubinbrown.com

page 54 | horizons Spring 2014