AUDIT COMMITTEE SUMMARY
October 20, 2015
Audit of the Finance Department
Vendor Master File & Disbursements
Report Issued September 29, 2015
Background
The Finance department's Financial Operations division is responsible for creating and maintaining the City's Vendor Master File (VMF). The VMF is a listing in the SAP system of all approved vendors from whom the City purchases goods and services. A vendor's existence in the SAP system file allows purchase orders to be issued and checks to be disbursed to approved vendors.
The City's vendor master file has four different vendor types:
* Trade vendors are procurement vendors who have been awarded a contract. Additionally, they can be a one-time payment or non-purchase order payment vendor for which there is no contract.
* Employee vendors are City employees who receive reimbursement for travel or other out of pocket expenses.
* Remit vendors are created when trade vendors request an alternate remit or payee address record; they should be linked to the associated Trade vendor number.
* Payroll vendors are third party vendors whose payments are processed through employee payroll deductions for payments such as IRS levy's or workman's compensation payments.
Vendor Type
No. of Records
Trade
45,452
Employee
15,463
Remit
4,658
Payroll
500
Total
66,073
As of September 17, 2014, the Vendor Master
File contained 66,073 records made up of the
four different vendor types:
Audit Objective
Determine if proper internal controls are place to ensure the City's Vendor Master File is reliable and payments are made only to authorized and approved vendors.
Audit Scope & Methodology
The audit scope included vendor records and types listed in the vendor master file as September 2014. Additionally, payments issued to vendors during fiscal year 2014 were also reviewed.
Our methodology consisted of conducting interviews and walkthroughs with key personnel and reviews of ...
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