Finding Text
Section 2 – Financial Statement Findings
Finding 2023-01: The Organization’s policies and procedures were not followed in the accounting for expenditures process.
Criteria: The Organization’s policies and procedures require vendor invoices to be retained in vendor files after payment has been made.
Condition: For the year ended December 31, 2023, thirty-five of the forty-one invoices from the disbursement testing sample and twenty-two of the twenty-five from compliance and control testing sample were unable to be located.
Cause: The Organization has noticed that there is an increasing number of invoices that are being sent to an old email address that no one has access to. Additionally, the Organization stated that they did not follow through well with their planned updates to their control policy due to increases in their day-to-day work.
Effect or Potential Effect: Duplicate payments could be made to vendors and expenditures could be charged to programs that are not allowable.