XXXX UNIVERSITY

TRAVEL AND ENTERTAINMENT EXPENSE

AUDIT PROGRAM

Audit Procedures / Date Completed / Work paper Reference / Comments
Scope
The scope of this audit includes a review of travel and entertainment expenses charged by all constituencies of the University. The audit will also include a review of the current policies and procedures in effect. A sample of the above expenses that are processed by different means will be reviewed. The review will require that Procurement and Accounting Department personnel be available to provide requested documentation and assistance.
Objectives
The objectives of this audit are to determine with reasonable but not absolute assurance that:
1.  Travel and entertainment expense policies and procedures are complied with.
2.  Travel and entertainment expenses are for official University business.
3.  Travel and entertainment expenses were properly authorized.
4.  There is an adequate system of internal controls over the processing of travel and entertainment expenditures.
General Procedures
Conduct an entry conference with the Director of Procurement to discuss the scope of the audit.
Review prior audit report(s) and workpapers on the subject.
Search the ACUA library and listserve for any information on the subject.
Specific procedures
Obtain a current organization chart of the Procurement Department.
Review any policies and procedures pertaining to travel and entertainment expenses.
Obtain the history of travel and entertainment expenses for the past three fiscal years and note any significant variances.
Prepare or update a narrative or flowchart describing the existing system including the different forms used.
Prepare a schedule of travel and entertainment expenses for the current fiscal year by type of charge.
·  Review the detail items supporting the schedule for duplicate payments
Select a random sample of travel and entertainment expenses from the schedule prepared above for the current fiscal year and test the following:
·  Proper approvals were obtained
·  Invoice total is mathematically correct
·  Adequate supporting documentation was provided not later than 10 days following return from the trip, if applicable
·  Determine the expense was posted to the proper organization and account number
·  The mode of transportation was appropriate for the trip
·  If a grant expenditure, determine the grant allows such expenses
·  If domestic Business or first class air travel was used, was Division Head approval obtained
·  If international air travel class other than Business class was used, was Division Head approval obtained
·  If car rented in U.S., was insurance declined
Obtain latest month-end travel advance detail and note aging to determine that they are not outstanding too long.
Obtain a list of current purchasing card holders and review the signed agreement for each of them.
Audit Reporting
Prepare a list of audit findings.
Prepare a draft report of findings and recommendations and submit to the Director, AVP, and Divisional VP.
Hold an exit conference with the Director, if necessary.
Receive responses to audit findings from auditee.
Prepare final report and submit to unit Director, AVP, Divisional VP and EVP for Administration.
Submit final audit report to Audit Committee of Board of Regents and external auditors.
Send audit program to ACUA for their library.
Follow up on management responses and publish results to divisional VP, Executive VP and Audit Committee.

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