Finding 1072795 (2023-003)

Condition: During our audit, we noted that management did not implement internal controls over volunteer time. It was noted while testing key controls over the sampled population of volunteer time used to meet the matching requirement for the major program tested. The sampled population was deteremined to be statistically valid. Criteria: The Organization must establish and maintain effective internal controls over the financial award that provides reasonable assurance that the non-Federal entity is managing the Federal Award in compliance with Federal Statutes, regulations, and the terms and conditions of the Federal award per CFR § 200.303. These requirements detail the information that must be included in the Organization's internal controls. Cause: Management did not design and implement internal controls to review and reconcile volunteer time. Effect: The absence of controls over volunteer time incurred lead to an increase risk of errors and noncompliance in the financial statements which could misrepresent the Organization's financial statements. Reccomendation: We recommend that the Organization perform and document a monthly review and/or reconciliation over the volunteer time recorded to ensure the volunteer time is complete and accurate. Views of Responsible Officials: Management agrees with the finding.