Audit 21772

Section II - Financial Statement Findings Finding 2022-001 The Organization?s control structure requires that all disbursements have approval forms attached that demonstrate that the purchases was approved by an appropriate party. During our tests of controls, we noted several transactions for which there was no evidence of support or approval for the disbursement. We recommend that management take necessary measures to ensure that these forms are completed prior to payment being made or posted to the general ledger. Management may also want to consider better utilizing an electronic system wherein they can scan all critical documents and attachments for a simpler review process. . Section III - Federal Award Findings and Questioned Costs Finding 2022-002 United States Department of Agriculture CFDA 10.555 National School Lunch Program Allowable Activities and Allowable Costs Compliance Criteria: The Organization must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Condition: Without documentation of controls over disbursements, demonstrating that costs comply with laws, regulations and other compliance requirements is difficult. Cause: Lack of compliance with designed internal controls over disbursements allows for payment of expenditures that were not properly approved. Effect: Nine disbursements out of fifty one selected for testing did not have the sufficient supporting documentation or required approval which accounted for $759 in recognized expenditures. Questioned Costs: None reported Recommendation: We recommend that adequate documentation be retained to support the approval of amounts charged to the grant. Management Response: Management agrees with these findings and have implemented controls and processes to ensure all documentation supported expenditures are retained for compliance review. See management?s Corrective Action Plan at page 31.

Section II - Financial Statement Findings Finding 2022-001 The Organization?s control structure requires that all disbursements have approval forms attached that demonstrate that the purchases was approved by an appropriate party. During our tests of controls, we noted several transactions for which there was no evidence of support or approval for the disbursement. We recommend that management take necessary measures to ensure that these forms are completed prior to payment being made or posted to the general ledger. Management may also want to consider better utilizing an electronic system wherein they can scan all critical documents and attachments for a simpler review process. . Section III - Federal Award Findings and Questioned Costs Finding 2022-002 United States Department of Agriculture CFDA 10.555 National School Lunch Program Allowable Activities and Allowable Costs Compliance Criteria: The Organization must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Condition: Without documentation of controls over disbursements, demonstrating that costs comply with laws, regulations and other compliance requirements is difficult. Cause: Lack of compliance with designed internal controls over disbursements allows for payment of expenditures that were not properly approved. Effect: Nine disbursements out of fifty one selected for testing did not have the sufficient supporting documentation or required approval which accounted for $759 in recognized expenditures. Questioned Costs: None reported Recommendation: We recommend that adequate documentation be retained to support the approval of amounts charged to the grant. Management Response: Management agrees with these findings and have implemented controls and processes to ensure all documentation supported expenditures are retained for compliance review. See management?s Corrective Action Plan at page 31.