Finding Text
2024-005 Significant Deficiency –Approval of Invoices Criteria and Condition: In order to stay in compliance with federal requirements for allowable activities/allowable costs, the Organization must maintain a system of controls over federal expenditures. During compliance and control testing for allowable cost/allowable activities, no support could be provided regarding approval of the invoice and related disbursement. Context: Controls over invoice approval and related disbursement could not be reviewed on any of the 14 invoice sample selections. Cause: Management did not have controls in place to maintain an audit trail for the approval process of cash disbursements of federal awards to vendors and suppliers. Effect: Internal controls over cash disbursements to vendors and suppliers could not be evaluated. Recommendation: Establish a system of controls to approve disbursements and maintain an audit trail. Views of Responsible Officials and Planned Corrective Action: Bill.com is the system now being used to approve disbursements and maintain an audit trail.