Finding 1146292 (2024-003)

Criteria: Procurement practices should be supported by complete and properly approved documentation in accordance with internal control standards and best practices. An effective control environment includes formal policies and procedures that provide clear guidance to staff and ensure consistency and accountability in procurement activities. Condition: Of the 31 items tested, 4 transactions or 13% of the sample, included purchase requisition forms that lacked documentation of approval from required personnel. This includes one form without Executive Director’s approval and 3 forms without indication that funds were available. Cause: Although the purchase requisition form includes designated fields for required approvals, the Organization does not have a formal, written policy or procedure governing the proper completion and approval of these forms. As a result, some requisitions were either not fully completed or lacked signatures from designated approvers. The absence of enforceable procedures contributes to inconsistent practices and increases the risk of unauthorized purchases. Effect: The absence of a formal written policy or procedure has led to inconsistent completion and approval of purchase requisition forms. This condition increases the risk of: • Unauthorized or improper procurement activities, • Noncompliance with internal control expectations, • Weakening of oversight and accountability in purchasing decisions, • Potential misuse of funds or circumvention of procurement priorities.