Finding Text
Criteria: The Organization is responsible for ensuring there is adequate controls over its cash disbursements process and adequate documentation is maintained to support its disbursements. Condition: During our testing of forty haphazardly selected client assistance expenditures, an invoice or other supporting documentation could not be provided for six selected transactions, for a total amount of $27,147.95. Five of the six expenditures were made electronically via a debit/credit card. Cause: Per inquiry, the cause is unknown and appears to be an oversight and/or lack of proper record keeping. Effect: Without adequate supporting documentation for disbursements, the Organization is at a heightened risk that expenditures are being made and charged to the federal award that are not allowed and/or for an eligible participant of the program. Questioned Costs: $27,147.95 Repeat Finding: No Recommendation: We recommend the Organization review its current policies and implement changes to ensure documentation is retained for all disbursements. Views of Responsible Officials: While the finance team prides themselves on a high degree of accuracy, there are inherent complexities in transitioning to a new system and implementing new policies. The accounts payable department at Mosaic Community Services transitioned to a shared service model under Sheppard Pratt in FY22. Also, Sheppard Pratt implemented a new ERP (General Ledger) system and the accounts payable team implemented a new platform with Truist for credit card transactions. Supporting documentation for cash disbursements is currently maintained electronically in both systems. This is a major step forward for integration of the finance function.