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OFFICE OF THE NATIONAL PUBLIC AUDITOR Audit of Travel Process Internal Controls FSM National Government Fiscal Years 2002 - 2004 _______________________________________________________________________________________
EXECUTIVE SUMMARY All travel activities of the FSM National Government are regulated by the FSM Financial Management Act of 1979 and the Financial Management Regulations as amended. Prior to the commencement of official travel, the traveler must have an approved Travel Authorization processed through the Department of Finance & Administration. Travel funds disbursed for authorized travel advances are considered advances due from travelers until liquidated and expensed when travel vouchers are filed with the required supporting documents. The Secretary of the Department of Finance & Administration is required to comply with the travel related sections of the Financial Management Regulations in managing and expending travel funds. FINDINGS Government funds were issued to travelers with outstanding travel advances or who have not filed travel vouchers on previous travel advances. Past travel advances are not constantly monitored and reviewed prior to the issuance of current travel advances. Additionally, not all travelers are compelled to file all outstanding travel vouchers consistently. Travel claim vouchers were either not filed or those filed did not contain complete and accurate supporting documents. The Secretary of the Department of Finance & Administration or his designee cannot definitively determine that all travel was undertaken to conduct official Government business. Outstanding and/or overdrawn travel advances for $616,045 was not properly monitored to ensure that repayment arrangements were negotiated or settled with the Secretary of the Department of Finance & Administration as required. RECOMMENDATIONS The Secretary of the Department of Finance & Administration should ensure that outstanding travel advances are constantly updated and monitored. Periodic notices should be sent to travelers and their Department Heads to ensure that all travel vouchers are filed in a timely manner. A system should be in place that allows for the monitoring and notification of travelers to file travel vouchers within the required period. If travel vouchers are not filed after the required period upon notification from the Department of Finance & Administration, the Secretary of the Department of Finance & Administration should compel the travelers to repay the amounts outstanding through any available means as set out in the Financial Management Regulations. Billing procedures should be established to compel the travelers with outstanding travel advances and overdrawn travel vouchers to repay amounts owed to the Government, file travel vouchers, or negotiate with the Secretary of the Department of Finance & Administration for a repayment arrangement. Additionally, a system should be put in place to compel travelers who are either former employees of the Government or non-government employees to clear outstanding and/or overdrawn travel advance balances. CLICK HERE TO VIEW THE ENTIRE AUDIT REPORT!! |
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