Finding 1223546 (2024-004)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2026-07-10

AI Summary

  • Core Issue: The Coalition failed to provide supporting documentation for 34 out of 40 cash disbursements tested, raising concerns about the legitimacy of these transactions.
  • Impacted Requirements: Effective internal controls require original invoices, receipts, or authorized contracts to validate cash disbursements.
  • Recommended Follow-Up: Implement a formal review process to ensure all cash disbursements are backed by proper documentation to prevent fraud and inaccuracies.

Finding Text

Finding 2024-004: Insufficient Internal Controls and Supporting Documentation for Cash Disbursements for ALN 93.558 Condition: In our sample of 40 cash disbursements selected for testing, the Coalition was unable to provide all of the supporting documentation for 34 cash disbursements transactions for the period October 1, 2023 to September 30, 2024. Specifically, we were unable to review the supporting documentation for funding requests submitted from program participants to the Coalition that agrees to the expenses listed on the request for funds form. Criteria: Effective internal controls ensure that cash disbursements are supported by original invoices, receipts, or authorized contracts to ensure payments are legitimate and accurate. Cause: The Coalition lacks a formal process to ensure that supporting documentation is maintained for all cash disbursements within the accounting system. Effect: A lack of supporting documentation creates significant risks of fraud or misappropriation of assets that are not be detected by management in a timely manner, increasing the likelihood of inaccurate and unauthorized payments. Recommendation: A formal review step to ensure that evidence of supporting documentation for cash disbursements are maintained to ensure accuracy and legitimacy. View of Responsible Officials and Planned Corrective Action: The Coalition agrees with the finding and appropriate policies and procedures have been implemented.

Corrective Action Plan

Development of standardized Request for Funds (RFF) procedures requmng complete supporting documentation prior to reimbursement processing. • Implementation of centralized grant file management protocols to ensure participant requests, invoices, receipts, approvals, funding justifications, and supporting documentation are retained together within organized electronic grant files. • Creation of grant-specific tracking systems to monitor reimbursement requests, supporting documentation status, approval workflow completion, and payment processing. • Increased accounting and management review of federally funded disbursements to verify allowab ility, allocability, reasonableness, and documentation completeness prior to payment approval. • Enhanced coordination between program staff and accounting personnel to ensure participant support documentation is submitted timely and maintained appropriately.• Implementation of additional compliance monitoring procedures aligned with 2 CFR Part 200 requirements. • Expanded training efforts related to federal grant compliance, documentation retention, and reimbursement processing standards.• Establishment of supervisory review controls to ensure disbursement support is reconciled to accounting records and grant reimbursement activity. ACADV is committed to maintaining stronger internal controls surrounding federally funded expenditures and ensuring future grant activity is supported by complete and accessible documentation.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1223547 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $662,001
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $105,470
16.556 STATE DOMESTIC VIOLENCE AND SEXUAL ASSAULT COALITIONS $76,934
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $41,962
93.591 FAMILY VIOLENCE PREVENTION AND SERVICES/STATE DOMESTIC VIOLENCE COALITIONS $32,654