Finding 372298 (2023-001)

Condition Several features of the accounting system necessary to maintain information appropriate to produce GAAP financial statements and facilitate grant compliance were not used, including: • Accounts receivable • Accounts payable • Credit card reconciliations • Review and approval routing of expenditures • Separation of functional activities Criteria: Management should design the entity’s information system and related control activities over technology to achieve objectives and respond to risks. Cause Management has not established and documented appropriate procedures for the use of its financial information system. Potential Effect of Condition Management may make improper decisions or submit improper reports to grantor agencies based upon incomplete or incorrect data. Expenses may not be adequately captured for timely reimbursement, unallowable expenses may not be detected and corrected timely. Recommendation Management should seek training or other means to improve their understanding of their accounting software and implement formal accounting procedures which take advantage of their software and facilitate better grant reporting and compliance. Management Response See corrective action plan attached to the end of this report.