Summary: Following the annual audit of the National Credit Union Administration's financial statements, improvements were recommended in the internal control system.
Controls over payments to contractors, cash receipts and deposits, and voucher reviews could be strengthened. The Administration had 18 active non-Federal Government contracts totaling more than $346,000 as of June 24, 1976. Invoices against such contracts were not subject to approval by the recipient prior to payment by the Division of Financial Management (DFM), and DFM personnel did not routinely verify that the terms of the contract were met and that charges do not exceed contract price. Daily receipts through the mail are logged by the cash clerk, but mail personnel occasionally open mail when the clerk is not present. Some receipts are not recorded immediately. There is inadequate control and unclear responsibility for cash receipts. In many cases, transaction vouchers are not signed by approving officials. The Administration's liability for security services provided have not been properly recorded in the accounting records.
