FAC Explorer

Finding 1161058 (2024-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-10-20
Audit: 371025
Organization: Borderlands Restoration Network (AZ)
Auditor: BEACHFLEISCHMAN PLLC

AI Summary

  • Core Issue: One disbursement was misclassified, and 27 out of 40 lacked proper payment authorization.
  • Impacted Requirements: Internal controls for coding disbursements and documenting payment authorization are inadequate.
  • Recommended Follow-Up: Implement stronger controls to ensure correct classification of expenditures and proper documentation of payment authorizations.

Finding Text

Internal controls should be in place to provide reasonable assurance that disbursements are properly coded and authorization for payment properly documented. One disbursement, out of a sample of forty disbursements tested, was incorrectly expensed when it should have been capitalize as a fixed asset. Additionally, there was no evidence of authorization for payment for twenty seven of the forty disbursements tested. We recommend the Organization establish controls around disbursements to ensure expenditures are properly capitalized or expensed and payment authorization is properly documented.

Corrective Action Plan

● The Organization will create expenditure logs for all purchases with designated areas to add detailed information to property code each transaction in the accounting system. ● Copies of our purchasing policy will be distributed to all employees along with various examples of purchases as part of our training process.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1161057 2024-004
    Material Weakness Repeat
  • 1161059 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
12.017 Readiness and Environmental Protection Integration (repi) Program $454,566
15.674 National Fire Plan-Wildland Urban Interface Community Fire Assistance $248,491
10.699 Partnership Agreements $247,700
15.931 Conservation Activities by Youth Service Organizations $109,707
15.247 Wildlife Resource Management $93,858
10.664 Cooperative Forestry Assistance $70,225
15.246 Threatened and Endangered Species $22,219
10.729 Inflation Reduction Act - National Forest System $17,481
15.244 Fisheries and Aquatic Resources Management $13,302
10.665 Schools and Roads - Grants to States $4,634
10.683 National Fish and Wildlife Foundation $4,172