Finding 29097 (2022-001)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-09-05

AI Summary

  • Core Issue: Invoices were not consistently approved before payments, risking inappropriate expenses from grants.
  • Impacted Requirements: Internal controls for segregating duties in recording, reconciliation, and disbursement were not followed.
  • Recommended Follow-Up: Ensure all invoices are reviewed and approved by someone who did not input them.

Finding Text

2022-001: Segregation of Duties Criteria: The Organization should design and implement internal controls to segregate the duties of recording, reconciliation, and disbursement of assets. Condition: During the year under audit it was noted that not all invoices were receiving an approval before checks were issued. Effect: This could cause expenses to be paid out of grants that are not appropriate for the grant. Cause: Internal controls over expenses were not followed consistently throughout the whole year. Recommendation: All invoices should be reviewed and approved by someone that does not input the invoices. Response: Management concurs with the finding.

Corrective Action Plan

2022-001: Segregation of Duties Corrective Action Plan: The Organization has implemented a new software that has built in approvals. The new software prevents any invoice from being processed until it has appropriate approval for the invoice. This will prevent any future invoices from being processed until they have been approved by someone that did not input the invoice. Contact Person: Connie Kreps - Interim Chief Executive Officer Anticipated Completion Date: The software has already been implemented.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 29098 2022-001
    Material Weakness
  • 605539 2022-001
    Material Weakness
  • 605540 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $7.90M
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $791,475
93.568 Low-Income Home Energy Assistance $654,261
93.569 Community Services Block Grant $636,933
10.568 Emergency Food Assistance Program (administrative Costs) $169,334
10.558 Child and Adult Care Food Program $168,401
93.499 Low Income Household Water Assistance Program $89,561
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $22,003
97.024 Emergency Food and Shelter National Board Program $9,009