September 9, 2020

Choose payment processing that allows separation of duties

Two employees of Mississippi’s Coahoma Community College were charged in September 2018 with embezzling more than $750,000 and using the money to shop for shoes, watches, even a chandelier. The charges were brought by the Mississippi Office of the State Auditor, which noted that it was the office’s largest embezzlement case in five years.

State Auditor Shad White urged public agencies to draw an important lesson from the community college’s misfortune: “Make sure different people … are responsible for different parts of making purchases. Separation of duties is an important way to prevent fraud.”

Ensuring such separation is one way GL Suite helps regulatory agencies across the country protect public funds and avoid becoming an auditor’s object lesson.

GL Suite’s payment processing system separates the logging of payments into the system and the application of payments to appropriate records. A typical payment processing system would apply a payment to an invoice at the same time the payment is entered into the system. GL Suite, by contrast, can be set up to allow non-finance staff to log payments into the system and require separate, finance staff to apply payments to appropriate records.

In addition to making it difficult for staff to spend public money on chandelier shopping sprees, GL Suite’s payment processing functionality creates a clear money trail for auditors to follow. The system even logs all changes made to a payment amount, including payment deletions.

Key features of GL Suite’s payment logging and applying functionalities:

  • Can accept a payment and apply it to an invoice at a later time.
  • Ensures internal audit and separation of duty requirements are met.
  • Can receive payments before individual or organization created in system.
  • Reports, queries can display logged payment data.
  • Applied payments automatically linked to invoice.
  • Unique validation numbers created for each payment or batch of payments.

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