Finding 370288 (2022-002)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2024-02-23

AI Summary

  • Answer: Some transactions lacked complete supporting documentation.
  • Trend: This issue was noted across various transaction types, including donor payments and invoices.
  • List: Ensure all required documents, like donor letters and pay rate support, are consistently maintained moving forward.

Finding Text

During the audit, there were instances where complete detailed support was not maintained. Complete supporting documentation was not maintained for transactions during the year, which including donor payments, donor letters, pay rate support and invoices.

Corrective Action Plan

Craig’s Doors management is in agreement that adequate supporting documentation should be maintained and easily locatable in order to substantiate transactions in the general ledger. In FY2021 and FY2022, Craig’s Doors underwent significant transitions in leadership (i.e., departure of Finance Administrator and Executive Director). Subsequent to these individuals’ departures, identifying types and locations of supporting documentation have been extremely difficult, if not impossible. Current staff, who were not part of the Organization throughout the transition, have devoted significant hours to combing through old files, both electronic and in paper form, where available, to locate FY2022 transaction support, sometimes to no avail due to the lack of a formal filing and retention system in place for that period of time. In June 2022, the organization engaged Your Part-Time Controller, LLC ("YPTC") to assist, among other things, in getting the Organization’s financial “house” in order, including providing recommendations for improved file maintenance systems and data retention. To that end, a Document Retention Policy is in process of development, and several systems have been implemented to increase the quality and accessibility of supporting documentation, including electronic timesheets, integration of donor record system with general ledger and a transition to BILL for payment (and housing) of invoices. Management is also in the process of evaluating expense reporting systems (e.g., Divvy, Expensify, etc.) to better track and maintain purchases by Staff across the organization. It is anticipated that, under new Management, and with new retention systems in place, there will be a significant increase in the quality and availability of the Organization’s records.

Categories

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Other Findings in this Audit

  • 370289 2022-003
    Significant Deficiency
  • 946730 2022-002
    Material Weakness
  • 946731 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.024 Emergency Food and Shelter National Board Program $52,038
14.231 Emergency Solutions Grant Program $24,322
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $6,347