Finding 10490 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-01-29
Audit: 14190
Organization: Fusion Parterships, Inc. (MD)

AI Summary

  • Core Issue: Significant deficiencies in documentation and approval processes for disbursements were identified.
  • Impacted Requirements: Missing essential documents like Check Request Forms and unclear approval trails raise concerns about authorization and compliance.
  • Recommended Follow-Up: Establish a clear review process for disbursements to ensure all transactions are properly documented and approved.

Finding Text

During our examination of internal controls over the disbursement process, a significant deficiency emerged, primarily concerning the documentation and approval procedures for various disbursements. Firstly, numerous disbursements lacked essential documentation, notably the absence of a Check Request Form and supporting materials like receipts, invoices, or Memoranda of Understanding (MOU). For credit card transactions, while supporting documentation such as invoices was provided, the corresponding Check Request Form was noticeably absent. Secondly, we encountered uncertainty in ascertaining the approval of expenditures from Fusion Management for the identified disbursements. The absence of a clear approval trail raises concerns regarding the authorization and oversight of these transactions. Lastly, a notable gap was identified in the lack of an evident process to determine whether Fusion staff reviewed the transactions to assess their compliance with allowable cost guidelines. This absence of a review mechanism creates uncertainty about the appropriateness of the incurred expenses.

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 10489 2022-001
    Significant Deficiency
  • 10491 2022-002
    Significant Deficiency
  • 10492 2022-002
    Significant Deficiency
  • 10493 2022-003
    Significant Deficiency
  • 10494 2022-003
    Significant Deficiency
  • 10495 2022-004
    Significant Deficiency
  • 10496 2022-005
    Significant Deficiency
  • 10497 2022-005
    Significant Deficiency
  • 586931 2022-001
    Significant Deficiency
  • 586932 2022-001
    Significant Deficiency
  • 586933 2022-002
    Significant Deficiency
  • 586934 2022-002
    Significant Deficiency
  • 586935 2022-003
    Significant Deficiency
  • 586936 2022-003
    Significant Deficiency
  • 586937 2022-004
    Significant Deficiency
  • 586938 2022-005
    Significant Deficiency
  • 586939 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.788 Opioid Str $530,796
21.027 Coronavirus State and Local Fiscal Recovery Funds $428,403
00.000 Parole Hearing and Reentry Preparation $209,967
93.307 Minority Health and Health Disparities Research $130,488
00.000 Community Engagement Research Alliance $126,938
00.000 Collective for Antiracist Child and Family Systems $50,436
16.034 Coronavirus Emergency Supplemental Funding Program $577