Finding Text
Program disbursements lacked proper documented support Condition: Certain program transactions selected for testing either failed to contain authorized approval for disbursement or documentation supporting the disbursement could not be located. Fraudulent activity perpetrated by the staff accountant was discovered by management during 2025. The transactions referred to above have not been identified by management as being fraudulent. Criteria: All disbursement transactions should be properly authorized for payment and supported with adequate documentation. The filing of all disbursement support should allow for sufficient access. Cause: The staff accountant failed to obtain documented management approval for select program disbursements. In addition, management failed to locate certain transaction documents selected for testing. Effect: Certain program expenditures lacked proper approved documentation support. Context: A sample of 30 non-payroll-related disbursements were selected for the audit from a population of 163 nonpayroll-related disbursements. The test found three disbursements that lacked proper approval with questioned costs of $2,448 and four disbursements where documentation support could not be located with questioned cost of $965. The total amount of questioned costs for program non-payroll-related disbursements could not be determined. Recommendation: The Organization should examine policies and procures involving the approval process to make sure that all program disbursements are properly approved prior to payment. Management should evaluate the maintenance of disbursement documentation to ensure all documentation is readily accessible. Views of the responsible officials and planned corrective action: The Organization agrees with the finding and will develop and implement additional policies and procedures to ensure all transactions are authorized. Management will monitor these additional policies and procedures to make sure approvals are obtained. See current year corrective action plan.