Leslie Knope, Auditor for Playground County, signs the claims twice a month before they are presented to the Commissione

[answerhappygod]

Leslie Knope, Auditor for Playground County, signs the claims
twice a month before they are presented to the Commissioners for
approval. Leslie’s accounts payable clerk, April, gathers all the
information and prints out a claim document for Leslie to sign
every two weeks. Once Leslie has signed the claim document it is
presented at the next Commissioners meeting for approval. Once the
Commissioners approve payment of the claims the Auditor office
initiates the payment process. This process has been done the same
way for 10 years with no problems. It is that time of year when the
State Board of Accounts send in their field examiners to perform
their annual audit of the financial statements. While performing
the audit Susie, an experienced field examiner performs a test of
disbursements by pulling a sample of claims paid throughout the
audit period. One of the claims chosen for audit is for the county
credit card. The county has only had the credit card for a few
years now and has adopted a credit card policy as they were advised
per the prior audit. As Susie reviews the claim she realizes that
itemized receipts are not always submitted by the user. Susie
brings the issue to Leslie asking for the supporting documentation.
Leslie takes a look at the charges and determines that the needed
itemized receipts were all from the Sheriff’s office and makes a
call to their head bookkeeper, Ron Swanson. Ron had maintained all
the itemized receipts but had never turned them in. He brings them
over to Susie, the field examiner, for audit. Susie reviews the
itemized receipts and determined that the Sheriff’s office have
been purchasing personal items with the credit card and having the
county pay for it. The personal items included groceries, gas (in
which a travel claim was submitted as well), and alcohol purchases.
Susie shows the Leslie the itemized claims and the finding that
will be included in the report. State Board of Accounts Special
Investigations have also been notified.
Was there an internal control issue? What should have been
happening? Should the Auditor have had a finding?