Supervision and Accountability

-------- Your tax dollars at work ---------

Effective Management....

Sound management in any organization requires checks and balances.... that goes without saying..... and most importantly, supervision. In the case of the reported $2 million dollars in travel, meeting and conference expenses of SWSDA, one would hope that the systems in place provide the necessary supervision to protect taxpayers' interests.

Traditionally, one of the mechanisms used by all organizations is to have travel expenses approved before or after the expenditure is made. In the case of SWSDA and the 147 pages of travel expense claims I've received from Mr. Anderson I was unable to discern any prior or post approval process, or validation of expenses claimed. Another method used is to require "evidence" that the expenditure was made for the items claimed. That generally includes providing original and official receipts showing the payment made.

As an illustration I have copied my tab at the Triangle Ale House last week and included it in this posting. On the left is the real receipt.... and on the right is an invoice leading up to the receipt once I've paid and or had my credit card processed for payment.

The receipt on the left is the one that is generally required by organizations when approving claims for travel/entertainment expenses.... it is the proper receipt showing what the establishment received in payment for the tab. The one on the right is inadequate and would not generally be accepted by most organizations since it does not provide evidence of what was paid but solely of what was claimed as having been paid..... big difference! Click on it to enlarge and see for yourself!

So here's the question ..... if you were supervising someone who submitted travel and expense claims to you would you insist on the receipt on the left or the tab on the right? ..... If you were responsible for verifying expense claims within an organization, what would you feel comfortable relying on as evidence of what was actually paid?

..... So here's the problem.... as far as I can tell.... Mr. Anderson does not have anyone within SWSDA verifying and/or approving his expense claims..... or the justification of the expenditure. Moreover, by lumping in travel, conferences and meetings all together in the chart of accounts as SWSDA has done in its financial statements, it is impossible to manage expenditures for travel and entertainment against meaningful approved budgets.

Of the 147 pages of expense documentation provided some 115 are amalgams of chits of paper receipts and tabs provided by Mr. Anderson to support his claims. The actual claim on the monthly claims sheets provided by Mr. Anderson provide no detail beyond "See attached receipts".... and a total amount that is added to the claim..... no identification of the reasons for the supposed expenditure is provided. In providing these, Mr. Anderson and/or his solicitor copied these to sheets of paper. Below you will see an illustration of these typical "receipts" provided by Mr. Anderson when he files the expense claims he makes and approves for himself. Again, click on them to enlarge.

Could this be a problem?