I have one branch that feels that since they attach a copy of the expense check to the paid bill that it is not necessary for them to keep a log of the expense checks issued. I feel that it is necessary to log each expense check as it is issued so that you are aware if there are any missing checks. The bank does not have anything stated in writing that it is required to keep a log of checks issues, but the 14 branches keep a log.

What does your bank require?

What is your position within the Bank? Are you the auditor?

Yes, I am the Auditor.

I would say write it up in an audit report then. Note that this is the only branch out of all 14 who refuses to use such a log. Then recommend writing a policy/procedures for this so it is defined by sr. mgt. - then the branch will have to follow.

I already put it in the audit report. I always send out the audit report and allow management to input a mgmt response prior to taking the report to the audit committee. The branch's biggest issue is that they sometimes issue checks that have to be split among 15 branches and they have to handwrite each G/L debit. Therefore they don't want to have to write down all the G/L's again on a log.

Does anyone have a good Expense Check Program that allows you to debit more than one G/L for each Expense Check?

If the purpose of the log is to account for numeric sequence, then why write down the GL #? Log the date, check #, payee, amount. Then pull the package if you need more data regarding GL #. That might be one way to get compliance. Perhaps your recommendation could provide the minimum that has to be logged and if you don't list GL # then that would effetively eliminate their argument.

One question that popped to mind during this sequence of posts related to the core process of producing expense checks at your organization. Is your expense check system manual? If so, and were I the auditor there, I would be screaming for a more automated and structured system of expense check production. This would not only make the log problem dissipate but increase controls on several other fronts also.

One more alternative.

We use "allocated 5420" instead of 14 branch GL numbers for an education (which is GL #5420) expense check. If I need to I can research 5420 for the individual records.

Yes, our system is somewhat manual. We have 15 branches and 12 out of the 15 use a somewhat automated check writing system and the other 3 write the checks by hand in the good ol typewriter. The biggest draw back to our expense check program that we have is that you can only debit one G/L for each check. So, if the check is for more than one branch or needs to be debited from more than one G/L (like most bills are) then the A/P clerk must write out the G/L tickets individually, so then it turns into a manual process. We are currently looking for an expense check program that allows the use of more than one g/l account, but we haven't found anything yet.

Having a software in place for A/P is the only way to go. You have printouts showing date, day, time, who instigated the whole process, We have one person for the bank and soon to be 4 branches that pays the bills (etc), and one GL account for them to pay through. I can audit her by reviewing her invoices to the GL, verify they were signed off on, there are no outstanding checks, and so on. I think it will make your job much easier if you audit committee will make them follow through.