Finding Text
Criteria: An effective internal control system should be designed and clearly documented. A key part of the documentation is the use of documented policies and procedures. The policies and procedures should cover general accounting and operational processes as well as compliance with State and Federal regulations as applicable. Condition: The Organization did not have effective policies in place over payroll cost allocations, non-payroll cost allocations, procurement, gift cards, equipment inventory and other indirect program cost allocations. Cause: The Organization did not develop, design or implement adequate internal control policies over key required processes. Effect: The lack of internal controls could lead to misstatements of financial activity and related program reports. The lack of such policies and procedures increases the risk of error, omission, fraud and abuse in financial statements and related activities. Recommendation: The Organization should review accounting policies to ensure that the policies are up-to-date and, if applicable, in compliance with the State and Federal Regulations. View of Responsible Officials and Planned Corrective Actions: