Finding Text
Disbursements Criteria – Internal controls over safeguarding assets constitute a process, effected by an entity’s governing body, management and other personnel designated to provide reasonable assurance regarding prevention or timely detection of unauthorized transactions and safeguarding assets from error or misappropriation. Such processes include establishing policies addressing proper authorization of the disbursement. Disbursements should be approved by the Local Workforce Development Board prior to funds being disbursed. Condition – All thirty-six transactions tested were approved by the Executive Director, the Finance Committee Chairperson, or the Board Treasurer, but were not approved by the Local Workforce Development Board prior to funds being disbursed. Cause – The Local Workforce Development Area's board allowed for disbursements to be approved only by the Executive Director, Finance Committee Chairperson, or Board Treasurer, but could not provide documentation this process was approved by the board. Effect – Lack of following policies and procedures requiring approval could result in unauthorized transactions and the opportunity for misappropriation. Recommendation – The Local Workforce Development Area should adhere to written policies and procedures requiring prior independent approval of all disbursements before payment. Response and Corrective Action Planned – The ECIWDB acknowledges this deficiency and commits to taking the following corrective action: Documented establishment of a procedure that will allow for the Executive Director to approve payments in real time, with subsequent affirmation by the Finance Committee at their monthly meetings. This procedural change shall be implemented on or about November 1, 2025. Conclusion – Response accepted.