Finding Text
Condition: We identified a significant deficiency related to the Organization’s controls over cash disbursements. Specifically, not all cash disbursements maintained the required supporting documentation and documented approval. Criteria: Proper internal control calls for every expenditure to show some evidence that it was approved prior to preparing the check and that invoices are present to support expenditures. Effect: The lack of these controls increases the risk of unauthorized or improper transactions, which could result in financial misstatements or misappropriation of assets. Recommendation: We recommend that the Organization obtain invoices or receipts for all disbursements and that all disbursements get initialed by a member of management to show evidence of approval. Response: The Organization is in agreement with the finding and has implemented new bill paying procedures that they will continue in 2025.