Finding Text
Criteria: The Organization should adhere to all approved financial policies and procedures.
Condition and Context: Currently, the Organization has stated policies related to credit cards and personnel files that are not properly being followed. The credit card policy states that receipts must be obtained and approval for purchases over $500 must be obtained from the CEO. During our testing of two months, November 2023 and April 2024, we noted two charges totaling $1,813 that did not have proper supporting documentation.
Cause: The Organization has a small number of accounting personnel who, along with being tasked with many responsibilities that are typically spread among a larger accounting department, were unfamiliar with the policies.
Effect or Potential Effect: The current condition could allow for the potential for personal expenses to be charged to the Organization’s credit cards or individuals may receive inaccurate amounts for wages with no support being maintained. For transactions related to federal grants without the appropriate supporting documentation, costs may be disallowed.
Recommendation: Management should gain a thorough understanding of the approved financial policies and procedures to ensure all are being adhered to. If the policies are no longer reflective of actual operations, management should revise the policies and procedures.
Repeat finding: Yes, 2023-002.
Views of Responsible Officials: Management of the Organization concurs with the audit finding and will review the financial policies and procedures, reinforcing those that are applicable and making necessary changes as needed.