Audit 406922

Finding 2024-004: Insufficient Internal Controls and Supporting Documentation for Cash Disbursements for ALN 93.558 Condition: In our sample of 40 cash disbursements selected for testing, the Coalition was unable to provide all of the supporting documentation for 34 cash disbursements transactions for the period October 1, 2023 to September 30, 2024. Specifically, we were unable to review the supporting documentation for funding requests submitted from program participants to the Coalition that agrees to the expenses listed on the request for funds form. Criteria: Effective internal controls ensure that cash disbursements are supported by original invoices, receipts, or authorized contracts to ensure payments are legitimate and accurate. Cause: The Coalition lacks a formal process to ensure that supporting documentation is maintained for all cash disbursements within the accounting system. Effect: A lack of supporting documentation creates significant risks of fraud or misappropriation of assets that are not be detected by management in a timely manner, increasing the likelihood of inaccurate and unauthorized payments. Recommendation: A formal review step to ensure that evidence of supporting documentation for cash disbursements are maintained to ensure accuracy and legitimacy. View of Responsible Officials and Planned Corrective Action: The Coalition agrees with the finding and appropriate policies and procedures have been implemented.

Finding 2024-005: Insufficient Supporting Documentation for Cash Receipts for ALN 93.558 Condition: In our sample of 12 cash receipts selected for testing, the Coalition was unable to provide supporting documentation for 3 cash receipt transactions for the period October 1, 2023 to September 30, 2024. Criteria: Internal controls should be designed and operating to ensure that all cash receipts are supported with documentation maintained by management. Cause: The Coalition lacks a formal, enforced policy requiring all cash receipts to be tracked and recorded along with supporting documentation at the time of collection. Additionally, there is insufficient review of the completeness of supporting documentation prior to recording the cash in the accounting system. Effect: Cash receipts may not be recorded accurately without adequate supporting documentation. Additionally, fraud or misappropriation of assets could occur and not be detected by management in a timely manner. Recommendation: Internal control policies should be strengthened to ensure that all cash receipts are accompanied with adequate supporting documentation such as a receipt log, invoices, reimbursement requests and other relevant records. View of Responsible Officials and Planned Corrective Action: The Coalition agrees with the finding and appropriate policies and procedures have been implemented.