Finding 22439 (2022-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-07-25

Audit: 21772

Organization: Yeshiva of Phoenix (AZ)

Auditor: Price Kong & CO CPA 's P A

AI Summary

Core Issue: Several disbursements lacked necessary approval forms, violating internal control requirements.
Impacted Requirements: Compliance with federal award management standards is compromised due to insufficient documentation.
Recommended Follow-Up: Ensure all disbursements have proper approvals before payment; consider using an electronic system for easier document management.

Finding Text

Section II - Financial Statement Findings Finding 2022-001 The Organization?s control structure requires that all disbursements have approval forms attached that demonstrate that the purchases was approved by an appropriate party. During our tests of controls, we noted several transactions for which there was no evidence of support or approval for the disbursement. We recommend that management take necessary measures to ensure that these forms are completed prior to payment being made or posted to the general ledger. Management may also want to consider better utilizing an electronic system wherein they can scan all critical documents and attachments for a simpler review process. . Section III - Federal Award Findings and Questioned Costs Finding 2022-002 United States Department of Agriculture CFDA 10.555 National School Lunch Program Allowable Activities and Allowable Costs Compliance Criteria: The Organization must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Condition: Without documentation of controls over disbursements, demonstrating that costs comply with laws, regulations and other compliance requirements is difficult. Cause: Lack of compliance with designed internal controls over disbursements allows for payment of expenditures that were not properly approved. Effect: Nine disbursements out of fifty one selected for testing did not have the sufficient supporting documentation or required approval which accounted for $759 in recognized expenditures. Questioned Costs: None reported Recommendation: We recommend that adequate documentation be retained to support the approval of amounts charged to the grant. Management Response: Management agrees with these findings and have implemented controls and processes to ensure all documentation supported expenditures are retained for compliance review. See management?s Corrective Action Plan at page 31.

Corrective Action Plan

Corrective Action Plan Yeshiva of Phoenix This corrective action plan is in response to the audit conducted by Price Kong. There were some items that were requested for the audit that we did not have receipts or backup. From now on: - We will not issue any reimbursement without a receipt to match. - We will require receipts for all purchases made with school funds. If we do not get receive a receipt we will send text messages and phone the purchaser/merchant until we do. If we still do not receive a receipt we will bill the purchaser for the item. - All receipts will be scanned and then matched to the purchase when we do the monthly reconciliation. - Any payroll change will be documented in writing, preferably signed by both parties. Alternatively, an email will be sent to both parties documenting the change. The email will be filed and stored. - Any new employee will receive a contract or an email confirming their salary. - In addition to storing our bank statements, we will also keep a digital record of any checks that we receive, and we will match these checks to our accounts. - We will keep formal minutes of all board meetings. These minutes will be distributed to all board members and stored. - We will request an updated depreciation schedule from our accountant every year. - We will meet with an accountant from Price Kong who will help us establish a formal accounting manual so that we will have set standards for all bookkeeping. Thank you for conducting the audit for us. Gaby Friedman, Vice President On behalf of Yeshiva of Phoenix.

Other Findings in this Audit

598881 2022-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
10.555	National School Lunch Program	$3.08M
84.425	Education Stabilization Fund	$390,345
10.559	Summer Food Service Program for Children	$112,077