Finding Text
Finding Type: Significant Deficiency in internal control over financial reporting and Significant Deficiency in internal control over compliance. Criteria and Condition: The Accounting Policies and Procedures Manual includes requirements for written approval by the Executive Director for expenses and items related to payroll. During our testing, it was determined these approvals were being given orally and not documented. Cause: Internal controls are not designed to provide authorization of transactions. When these authorizatiions are not documented, it is not possible to know if the transactions were properly authorized. Effect: Misstatements and improprieties could occur and not be detected. Recommendation: We suggest the Organiation provide written documentation of authorizations and reviews as outlined in the Accounting Policies and Procedures Manual. Views of Responsible Officials and Planned Corrective Actions: We will begin providing written documentation of authorizations and reviews as outlined in the Accounting Policies and Procedures Manual.