Finding 1138562 (2024-004)

Material Weakness
Requirement
LP
Questioned Costs
-
Year
2024
Accepted
2025-06-02

AI Summary

  • Core Issue: Disbursements lack proper documented approval, leading to a material weakness in internal controls.
  • Impacted Requirements: Compliance with Uniform Guidance is not met, increasing the risk of fraud and errors.
  • Recommended Follow-Up: Ensure all disbursements receive documented approval before processing payments.

Finding Text

2024 – 004 Disbursements not receiving proper approval - Block Grants for Prevention and Treatment of Substance Abuse – ALN 93.959 (Material Weakness under Government Auditing Standards and Noncompliance) Condition: During testing auditor reviewed multiple disbursements that did not have documented approval. Criteria: Uniform Guidance requires entities receiving federal funding to have robust internal controls around the disbursement of funds. Cause: The prior bookkeeper did not obtain sufficient approval relating to disbursements. Effect: This exposes JACOA to a greater risk of fraud, loss, and undetected error. Recommendation: We recommend all disbursements receive proper documented approval before the payment of invoices. Response: Documented approval will be obtained for all disbursements prior to processing payments.

Categories

Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1.69M
93.235 Title V State Sexual Risk Avoidance Education (title V State Srae) Program $64,949
20.600 State and Community Highway Safety $41,493
10.511 Smith-Lever Extension Funding $22,862