Corrective Action: Although we had a control process in place at that time, it was not sufficient to meet
the standard of the single audit. We have improved our Internal Controls since the start of the audit.
In addition to the annual budget process, non-recurring expenses must be pre-approved by th...
Corrective Action: Although we had a control process in place at that time, it was not sufficient to meet
the standard of the single audit. We have improved our Internal Controls since the start of the audit.
In addition to the annual budget process, non-recurring expenses must be pre-approved by the CEO
or Director Finance and Administration prior to purchasing. Monthly transactions that are auto debited
from the credit card or bank account, for example health insurance, telephone, internet, etc. are
processed in accordance with our budget and pre-approved by the CEO and Director of Finance and
Administration. Those transactions are still reviewed monthly. Below is a section from our current
Internal Control document.
Disbursements
For non-routine purchases, expenses must be pre-approved by the CEO or DOFA. The CEO, Directors or
Executive Assistant (EA) will initiate the purchase. Due to very few non-routine purchases, LM currently does
not use a purchase order system. The EA opens the mail and will give all the invoices to the Director of
Finance and Administration (DOFA) to be coded and reviewed against the grant and/or budget. After coding
the invoices, the DOFA gives the payable invoices to the Staff Accountant (SA). The Directors are responsible
for stamping and coding all their payable invoices, comparing them against their budgets to ensure coding is
correct and placing the stamped and coded payables in the appropriate area for the SA. Weekly the SA will
review all the stamped and coded payables from all the Directors with the DOFA for review and approval of
the various budgets. Then the DOFA will review the AP invoices with the CEO for his final approval and
signature. Once payables are approved by the CEO, the SA will update the AP log in SharePoint and scan
the signed/approved AP invoices to CBIZ for posting to QuickBooks.
Credit Cards:
Currently, the CEO, DOPO, DVM, and EA have credit cards. All expenses must be pre-approved by the CEO
or DOFA. Recurring payments such as utilities, software, and telephone are done via credit card. Many office
supplies and program supplies are paid via credit card. Also, many times last minute expenses are paid via
credit cards. The credit card has an aggregate $10,000 limit. The CEO has an aggregate $15,000 limit. The
Directors, EA and CEO should print credit card receipts, stamp and code expenses on the receipt and these
receipts are to be placed daily in the Finance CC folder in the copy room. The SA will review the receipts and
coding, then weekly review the CC receipts with the DOFA against the various budgets. Once reviewed and
approved by the DOFA, the SA will add to the CC log on SharePoint. CBIZ will update QB monthly directly
from the CC Log which includes allocation coding.