Audit 388818

Criteria : Cash disbursements should be approved and reviewed as per the internal controls in place in the organization and the related documentation should be retained. Condition : No supporting documentation could be located for three of the expenses selected for testing. Cause : Organization not maintaining the proper documentation due to transition in accounting staff/management. Effect : No proper documentation may result in the expenditures of federal program not being properly monitored, thus resulting in potential noncompliance with program requirements. Recommendation : We recommend management implement an additional/alternate level of review by someone with proper knowledge to oversee the disbursements made under the program and the documentation is retained properly. Management’s Response : See Management’s View and Corrective Action Plan included at the end of the report.

Criteria : All deposits should be supported by detailed documentation, properly recorded and retained as per the internal controls in place in the organization. Condition : Detailed supporting documentation was not found for three sampled deposits and three other deposits could not be traced to bank statements. Cause : Organization not maintaining the proper documentation due to transition in accounting staff/management. Effect : No proper documentation may result in the expenditures of federal program not being properly monitored, thus resulting in potential noncompliance with program requirements. Recommendation : We recommend management implement an additional/alternate level of review by someone with proper knowledge to oversee the disbursements made under the program and the documentation is retained properly. Management’s Response : See Management’s View and Corrective Action Plan included at the end of the report.

Criteria : Per the compliance requirements, transactions should be made only with the vendors who are not suspended or debarred. Condition : Out of 8 vendors tested, we noted that there was no proper documentation maintained for eight vendors showing that the vendor was not suspended or debarred. Cause : The Organization was unaware of the compliance requirement. Effect : Failure to verify the suspension or debarment of vendors may result in disbursements being made to a suspended/debarred vendor, thus resulting in potential noncompliance with program requirements. Recommendation : We recommend management implement a level of review by someone with knowledge of the grant requirements of the program. Management’s Response : See Management’s View and Corrective Action Plan included at the end of the report.