Management Response and Planned Corrective Action:
We partially concur with the Federal Award Findings outlined above of the auditors and have implemented a corrective action plan, including updating internal control policies and procedures.
Views of Responsible Officials and Corrective Actions:
Th...
Management Response and Planned Corrective Action:
We partially concur with the Federal Award Findings outlined above of the auditors and have implemented a corrective action plan, including updating internal control policies and procedures.
Views of Responsible Officials and Corrective Actions:
The management team of the Council of Western State Foresters believe in the values of transparency, justification, and documentation for transactions made in the course of conducting job related duties.
As a small organization with limited staff, suggested reasonable improvements to processes are always welcome. It is in this spirit that the below corrective actions for the compliance issues noted in the findings from the 2023 audit are put forward.
2023-003 #1 Corrective Action Plan:
Documentation and Authorization of Transactions
Management acknowledges the findings related to incomplete documentation and approvals for certain per diem and small purchase transactions. While pre-travel authorization forms and signed confirmations were completed by the Executive Director and Pacific Island members, the supporting documentation was not consistently attached to the financial records. Specifically, documentation of approval for the $300 per diem (cash and check) was provided, however the $3.25 ATM fee authorization was not explicitly documented. It is important to note that cash transactions may be necessary due to limited banking infrastructure in certain Pacific Island regions.
Additionally, the $130.65 in meeting supplies purchased by the Executive Director was within the organization’s policy threshold for small purchases; however, the specific use of the card by the Executive Director under this policy was not specifically noted for this transaction. A $555.96 transaction was verbally approved by the former Executive Director, but the approval was not documented in accordance with procedures adopted following the previous audit.
Staff will consistently attach all supporting documentation for transactions, including email approvals, pre-travel forms, invoice signatures, and system approvals, in accordance with updated reimbursement policies. Policies will be revised to explicitly outline the documentation requirements for per diem transactions involving Pacific Island members, and to clarify the procedures for Executive Director small purchase authorizations. Implementation of a new electronic payment approval system, which will embed approval documentation directly into the system and improve recordkeeping. Once in place, policies and procedures will be updated to reflect this process and address the use of organizational vs. staff charge cards under the new system.
2023-003 #2 Corrective Action Plan:
Reimbursement Rates
Council of Western State Foresters staff and Balance Financial Management will review and validate reimbursement rates to ensure alignment with current policies and applicable guidance going forward.
2023-003 #3 Corrective Action Plan:
Salary Allocations and Time Reporting
Management acknowledges the observation. As employees are salaried, some variation in the conversion of salary dollars to hours is expected. Nevertheless, management remains committed to ensuring that cost allocations are reasonable, consistent, and well-documented.
2023-003 #4 Corrective Action Plan:
Grant Time Allocation
The process for allocating staff time to specific grants has been updated to improve accuracy and compliance. Staff now allocate time directly based on hours worked per grant, and supporting documentation is available upon request to substantiate these allocations.
Anticipated Completion:
All internal control items have been completed, and implementation of the new electronic payment system is in process with an estimated completion date of August 2025.