174-18 Corrective Action Plan.pdf

174-18 2017 Audit Corrective Action Plan Purchasing FINDING: During our internal control testing over cash disbursements, we identified several instances in which the Township did not properly encumber funds prior to placing an order with a vendor for the procurement of goods or services. This was mainly the result of departments not following Township procedures in the ordering of goods and services. RECOMMENDATION: It is recommended that the Township properly encumber funds prior to procuring goods and/or services. EXPLANATION: A number of departments have on occasion, not been compliant with the Township’s Purchasing Manual procedures, making purchases prior to obtaining a purchase order. CORRECTIVE ACTION PLAN: The Township will institute additional internal controls to monitor such activity, provide training to employees to prevent such violations in the future and consider disciplinary action for those that are not compliant with this requirement.