small horizontal black line
askus icon

Office of Accounting

Accounts Payable

Post-Payment Audit Memo

Return to Post-Payment Home Page

May 23, 2000


TO: Deans, Directors, Departmental Chairs, Project Directors, and Other Administrative Officials

FROM: Fred Friedrich

SUBJECT: Post-Payment Audit Process

On June 15, 2000, The Office of Accounting will implement a post-payment audit process for payment vouchers less than $1,000. Currently all payment vouchers for the University are reviewed by Accounting prior to payment. Beginning June 15, the majority of payment vouchers less than $1,000 will not require pre-approval by Accounting, but will approve after all department signatures are obtained.

Several factors make this implementation timely.

  1. In 1998-99, over 80% of purchase order and service payments were less than $1,000; however these documents cumulatively comprised less than 10% of total dollars spent.
  2. Recent electronic control features implemented to comply with the Prompt Payment Act increase the integrity of the documents created by departments and reduce the need for further manual review.
  3. The State Comptroller has been successfully using the post-payment audit process without any dollar threshold for the past five years.
  4. Procard purchases have been audited on a post-payment basis for over two years on campus.

The new process will enable more timely payment processing, increased control of supporting documentation, reduced costs due to fewer resources required for pre-auditing, and better relations among academic, research and administrative departments due to fewer delays.

All other payments, such as those over $1,000, entertainment vouchers, payments to individual contractors, and travel vouchers, will continue to be audited by Accounting prior to payment. Documents that approve at the department level will be audited for compliance with payment rules on a post-payment basis. The Office of Accounting will use post-audit reports to:

  • Ensure supporting documentation for all payments is received
  • Identify coding errors, particularly for entertainment and controlled items
  • Monitor payment of purchase orders by aging of outstanding P.O.s
  • Identify departments in need of additional training

Department responsibilities remain unchanged. Documents will continue to be created and reviewed by departmental personnel. Other policies, procedures, and controls regarding payments (i.e., received stamps, paying from original invoices, etc.) also remain in effect. Supporting documentation will continue to be forwarded to the Office of Accounting.

Document routing for purchase order payments (VP1 documents) and service payments (VP2 documents) will be changed to require two department signatures for approval. We have contacted the departments affected by this change and are assisting them to modify their routing prior to the implementation date.

Additional information is available at

If you have any questions, please contact me at 471-3723, or via e-mail at