Agenda Information Sheet
DEPARTMENT: Internal Audit
CM/ ACM: Mayor and Councilmembers
Date: September 12, 2017
SUBJECT
Title
Receive a report, hold a discussion, and give staff direction regarding the Vendor Master File Audit.
Body
BACKGROUND
The City Auditor has conducted a Vendor Master File (VMF) audit. This audit was conducted under the authority of Ordinance #2017-112 and in accordance with the FY17 Audit Plan approved by the Denton City Council.
OPTIONS
N/A
RECOMMENDATIONS
1) Management needs to specify what department and who in the department is responsible for the Vendor Master File.
2) Management needs to create VMF Policies and Procedures and update as necessary.
3) Management should consider if the JD Edwards Financial Accounting System can be reconfigured to accommodate a one-up sequential numbering system.
4) Management should consider creating naming conventions for the VMF and add them to the policies and procedures. Using the U.S. Postal Service Rules of Addressing may be used.
5) Responsible parties should collaborate with the IT department to find a solution to the Search Function difficulties.
6) Once or twice a year certain vendors need to be inactivated.
7) After being inactivated for two years, vendors should be purged from the VMF and placed in an archived file.
8) Create access rights policies and procedures to memorialize the checks and balances needed to strengthen the access rights over this file.
9) Management should review access reports yearly.
10) Institute a proper review of adds/changes/deletions made to the VMF. To ensure completeness and accuracy, this review should be performed by management or staff independent of those involved in vendor setup.
11) VMF should be reviewed on a regular basis for:
> Inactive accounts
> Duplicate vendors
> Vendors with incomplete records
> Accuracy issues
> Inconsistent naming conventions
12) Management should consider reversing the order for the TIN matching and debarment rev...
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