Finding Text
2022-002 Condition: The Organization?s Chief Executive Officer utilizes a debit card for federal award program purchases. Effectively, the Chief Executive Officer executes and authorizes his own purchases. Criteria: ? 200.303(a) requires non-federal entities to establish and maintain effective internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. The duties of purchasing and approval should be segregated among several personnel or members of the board of directors. Segregation of employees? duties is a common practice in an effective internal control structure. Effect: Failure to maintain adequate segregation of duties exposes the assets of the Organization to greater risk of misappropriation and noncompliance with federal, state, and grant contract guidelines. Cause: The Chief Executive Officer utilizes a debit card for federal award program purchases. Recommendation: We recommend the Executive Director immediately discontinue the use of the debit card. Management Response: Management concurs with this finding. Management will immediately cease use of the debit card.