Finding Text
Condition: The Organization’s controls over compliance were not sufficient in that management was unable to provide documentation of approval of invoices and other support prior to payment for several expenses. Criteria: The Uniform Guidance requires that entities receiving and expending federal funds maintain an adequate system of internal controls over the expenditure of federal funds, such as management approval of invoices and other support prior to payment. Cause: The Organization did not follow its procedures over cash disbursements. Effect: The Organization could have expended federal funds on unallowable activities or costs. Recommendation: We recommend the Organization review its cash policies and procedures to develop a system of requiring management approval of all expenditures of federal funds and documenting this approval prior to payment. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the recommended procedures will be implemented.