Top 10 Auditing Tips San Antonio April 13-16, 2015 for Travel Expense Reports Toni Waters, CPCP Corporate Credit Card & Expense Reporting Manager with FIS 2015 NAPCP
About FIS 2 FIS (NYSE: FIS) is the world s largest global provider dedicated to banking and payments technologies. FIS serves more than 14,000 institutions in over 110 countries. Headquartered in Jacksonville, FL. Employs more than 39,000 people worldwide. $6B in revenue in 2013.
About FIS 3 Our overall travel spend is $35M. Number of travelers: 8,000 Number of corporate credit cards: 7,000 (2 different programs) Number of processed expense reports per month: 5,000 Our overall team of 6 3 audit expense reports, 2 support corporate credit cards, and 1 manager.
Why audit travel expense reports? 4 Expenses equate to the second largest spend category for an organization (#1 is compensation). To ensure the expense report line items are in compliance with the company published policies. Travel & Entertainment Policy Telecommuter Policy Mobile Device Policy Procurement Policy
5 #1 - Managers and authorized delegates are a key control They are the first level of defense. It is ultimately their responsibility to ensure the expense report is in compliance with published policies. Create mandatory manager training.
6 #2 Look for spend on weekends and around holidays Does the spend make sense? Sunday is a big travel day for those expected to attend a Monday morning meeting. Would someone really entertain a client over dinner on Black Friday?
7 #3 Track and graph the biggest spenders Keep track monthly/quarterly for your employees. Review the overall employee base vs. just those with a corporate credit card. Does it make sense for their position within the company? Do you see spikes in their spend? Holiday Gifts, International Travel
8 #4 Review the merchant name, including the card issuer Ensure managers and delegate approvers review the merchant name as well. Look for things like late fees, utility companies, clothing stores, hardware stores, and online retailers.
9 #5 Review by MCC Category When reviewing your spend data from the corporate credit card programs, review by the MCC category (for example: Retail, Utilities, and Health Care) Although some of these merchants may stand out as personal, some may be a gray area. Walmart/Target sell food but they also sell clothes. Someone could be buying groceries for their family, but they also could have lost their luggage.
10 #6 Require flight receipts Does the traveler s name on the receipt match that of the employee who submitted the expense report? If not, is proper justification provided? Co-worker Contractor Interviewee Spouse/Family Member
11 #7 Review the cash activity What are your receipt requirements for cash activity? How many cash items do you see just under the receipt requirement threshold? Is the cash activity at a merchant where they could be using their corporate credit card? (For ex. Starbucks) Increasing your corporate credit card activity can also positively affect any incentives available through your corporate card program(s).
12 #8 Oddities and duplicate payments Does the report include more than one transaction for the same merchant on the same day (split transactions)? Are those transactions split in a way to avoid having to submit a receipt?
13 #9 Cash Tips Does your travel policy provide tipping guidelines? It isn t my money, so who cares?
14 #10 Automobile Mileage This is an easy place for employees to potentially pad their expense report. Does your travel policy provide guidelines around personal automobile use? Use the most cost-effective option for your organization.
Additional Suggestions 15 Pay attention to receipts Does it look legitimate? Can you see the receipt in its entirety? Read the book How To Pad Your Expense Report And Get Away With It! by Employee X After reading this book, you will never audit an expense report the same way again.
Conclusion 16 Keep your eyes open. Think outside the box. How could someone manipulate the system to get an expense through? Read the book. You won t regret it. Use this book as a guide to making system enhancements within your expense reporting tool.
17 Thank you! Any Questions?