Treasury Financial Module Review

djacobs43
Jun 23
2 min read

Updated: Jul 29

Treasury Financial Module Audit Summary

Why the Office of the City Auditor (OCA) did this project

The City Auditor’s Office reviews financial modules in the City of Tulsa’s enterprise resource planning (ERP) system to ensure financial controls remain strong. We selected the Treasury module to review because of the importance, volume and dollar amount of the transactions in this module.

Project Scope

Review internal controls and processes in the Treasury module for transactions occurring between July 1, 2023 and June 30, 2024. Evaluation includes automated and manual controls.

How OCA did this project

Project procedures:

Review Treasury processes and procedures to ensure appropriate, accurate and timely processes.
Verify ERP roles are appropriate.
Confirm wires are appropriately approved and properly supported.
Ensure assets are properly safeguarded.
Verify accounts are properly reconciled.
Verify ERP transactions, reversals and adjustments are properly approved and
supported.

Key Observations

The current configuration of ERP is preventing transactions for payment reversals from going through the proper workflow approval processes.

Treasury Module Audit Report

Audit Objective

Review internal controls related to the Treasury Module to ensure appropriate, accurate

and timely processes.

Significant Results

The current configuration of ERP is preventing transactions for payment reversals from going through the proper workflow approval processes.

Payment reversal is the process of canceling or undoing a payment that was previously recorded in the system due to an error in the transaction or a customer dispute. We reviewed a selection of 37 payment reversals to determine if proper approvals were in place for the transactions. There were 12 instances where workflow appeared to have been bypassed and did not receive the proper approval for the transaction.

Recommendations

A review of the current configuration of ERP roles and workflow setup should be conducted and adjusted if necessary to ensure proper approvals for all payment reversal transactions.

Response

Treasury will work with Enterprise Service Management (ESM) to review the roles and workflow with a goal toward ensuring approvals occur with each transaction.

OCA will follow up with Treasury to confirm a review has been completed and proper workflow approval has been implemented.