Internal audit reports minor expense control issues; committee reviews policies with no immediate changes

Maria (internal audit) briefed the committee on recently completed and planned audits including Concur (travel and expense) and procurement‑card reviews. She said Concur and P‑card transactions receive multiple pre‑audit reviews by finance staff before internal audit sampling. Internal audit reported finding one incorrect expense categorization and one transaction where a tip appeared above 20% because the receipt included an embedded gratuity. That disallowed item was reimbursed by the traveler after notification, Maria said.

On P‑card audits, Maria said the team found some missing receipts and occasional sales tax charges when exemption forms were not on file, but did not find evidence of misuse. She said the authority runs monthly or quarterly P‑card holder meetings that include procurement staff and finance reviewers to address recurring issues and training.

The committee reviewed a set of policies for which the Finance and Audit Committee has oversight. Staff said four policies — the investment policy, company credit card policy, variable rate securities and derivatives policy, and the financial policy — were being held for further work and would return in November or later if needed. Staff noted these are older or technically complex policies and they prefer to refine them rather than rush updates. The committee noted the business expense reimbursement policy had been approved earlier in the year and did not require immediate revisiting.

Maria said staff will present the 2026 audit schedule and any completed audit reports at the next meeting.