Community Service Block Grant– Assistance Listing No. 93.569
During our testing, we noted there was a lack of supporting documentation for four out of forty transactions tested charged to the federal program totaling $1,165. There were also seventeen out of the forty transactions tested that docume...
Community Service Block Grant– Assistance Listing No. 93.569
During our testing, we noted there was a lack of supporting documentation for four out of forty transactions tested charged to the federal program totaling $1,165. There were also seventeen out of the forty transactions tested that documentation of approval for the transaction was not present.
Recommendation: The organization should review its internal controls and procedures to ensure all supporting documentation is retained for federally funded purchases. Also, management should implement an approval control for purchases incurred on the Organizations credit cards.
Explanation of disagreement with audit finding: There is no disagreement with the audit finding.
Action planned/taken in response to finding:
Organizations collaborating with federal agencies must adhere to specific guidelines to ensure financial documentation and compliance. In cases where expenses require further explanation or justification, it is imperative for the organization to promptly provide any necessary additional documentation, such as receipts or contracts, to substantiate these expenses. Moreover, if expenditures surpass the approved budget or funding limits, collaboration with the federal agency is essential to adjust these parameters accordingly. This may involve renegotiating the budget or seeking additional funding where necessary. It's also crucial to address any discrepancies between the approved period for project execution and the actual expenditure of funds, known as period of performance findings, as swiftly as possible. By providing explanations for any delays or discrepancies and taking corrective action as needed, organizations can avoid potential penalties or repayment obligations. Additionally, ensuring that invoices are accurately entered into the accounting software is vital for maintaining precise financial records. Therefore, reviewing and refining the process for entering invoices can help prevent errors and ensure that expenses are correctly allocated to the appropriate period. Overall, adhering to these guidelines promotes financial diligence and compliance, facilitating smooth collaboration with federal agencies and minimizing potential risks.
Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director
Planned completion date for corrective action plan: Planned completion date is October 1, 2023.