FINANCIAL MANAGEMENT: Improving Payment Request Controls Could Provide a Better Value for Purchases and Protect the Company’s Interests

Our objective for this report was to assess the effectiveness of the company’s controls over payment requests. The company has a process that allows its employees to expeditiously make non-recurring and low-dollar purchases and certain high-dollar payments, subject to certain criteria. Known as “payment requests,” we found that the company’s controls over payment requests appeared to be generally effective in ensuring purchases were made for valid business purposes and that it correctly paid its vendors. We identified, however, opportunities to improve internal controls impacting its payment request process. To address the report’s findings, we recommended that the company more comprehensively and periodically analyze its payment request data to identify patterns of possible non-compliance and opportunities in which the company could do more to protect its interests and get a better value for its purchases through a contract.