Sunday, March 14, 2010

Checklist for Approving Payments

The Washington State Auditor's Office published a list of 8 key questions for public agencies to ask when approving payments to contractors, consultants, and vendors.  Here's their list from their March 2010 Fraud Risk Alert newsletter:
  1. Do you have firsthand knowledge that this vendor or contractor exists?  If not, who can you contact to verify they do exist?
  2. Is this invoice based on an approved contract?  Have the terms of the contract been met?  If not, is a contract necessary based on the information in the invoice?
  3. Has the vendor/contractor provided the goods or services identified in the invoice or other billing statements?  If you are not sure, verify with an independent source.
  4. Are the correct amounts for price (including unit prices used), sales tax, freight and other variables addressed in the invoice?
  5. Are the prices being invoiced reasonable?  Look for a standard to assess whether the price charged is reasonable.
  6. Do the quantities make sense?  Do the quantities agree to the contract or agreement?
  7. Has anyone verified the invoice and other documents are mathematically correct?
  8. Has anyone verified this invoice has not already been paid?

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