University of Nebraska Kearney

Purchasing/Spending Process:  AP Audits

Authorization and Approval Review.  It is the responsibility of each University department to ensure that all purchases by the department are properly authorized and that claims submitted for payment through Accounts Payable are approved by the person(s) responsible for the cost object(s) being charged.  Signatures on payment claims are subject to periodic review by Finance Office personnel to determine that those signatures are appropriate and that any delegation of authority is documented in writing in department records.

Purchasing Card Review.   A weekly review is conducted by Accounts Payable to determine that all purchasing card transactions posted into SAP comply with University policy and that the data entered is appropriate.  In addition, regular periodic reviews of purchasing card documentation are made by the Internal Auditor to ensure that required documentation is being maintained at the department level, is being retained in compliance with the University's records retention schedule, and that the documentation supports allowable expenses charged to the purchasing card per University policy.

SAP Review.  All expenditures entered into the SAP Accounts Payable system are reviewed at the time of posting to determine that the data entered into SAP agrees with the supporting documentation, that the general ledger coding is appropriate, and that the vendor master records for vendors subject to tax reporting are set up correctly.  When exceptions are noted, contemporaneous corrections are made, if possible. Otherwise the University department is contacted to assist in making corrections.

State of Nebraska Review.  The State of Nebraska has designated the purchase of certain goods/services as "audit-sensitive" purchases. These purchases require a special review to determine whether they comply with State and/or IRS guidelines and whether adequate documentation has been submitted to support that determination.  When exceptions are noted, the University department is contacted to assist in correcting those exceptions.