Finding 380806 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-03-18
Audit: 295534
Organization: Blue Water Community Action (MI)
Auditor: Uhy LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to payment documentation and approvals.
  • Impacted Requirements: Agency policy mandates that all payments must have proper documentation and necessary approvals.
  • Recommended Follow-Up: Management should review and improve the approval process and invoice maintenance to ensure all payments are properly documented.

Finding Text

Type: Significant deficiency in internal control over compliance. Criteria: Agency policy requires documentation to be maintained for payments made and certain approvals to occur for payments Condition: The Agency could not locate one of the 40 invoices selected for testing, and disbursement registers did not have approval for the months of July through September. Context: Certain payments did not have adequate controls to ensure maintenance of invoices or approval of payments. Cause: The Agency has misplaced one of the 40 invoices, but all others selected were located. The registers did not have documentation of approval, as there were significant changes in management and staff during the year, and this process was missed in the transition of staff. Effect: Expenditures could have been paid that were not approved by management or the board. Recommendation: We recommend management review the process of approvals and maintenance of invoices to ensure payments made are proper and documentation of approvals are maintained. View of responsible officials and planned corrective action: Management agrees with the finding. See corrective action plan.

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 380804 2023-001
    Significant Deficiency
  • 380805 2023-002
    Significant Deficiency
  • 380807 2023-002
    Significant Deficiency
  • 380808 2023-001
    Significant Deficiency
  • 380809 2023-002
    Significant Deficiency
  • 957246 2023-001
    Significant Deficiency
  • 957247 2023-002
    Significant Deficiency
  • 957248 2023-001
    Significant Deficiency
  • 957249 2023-002
    Significant Deficiency
  • 957250 2023-001
    Significant Deficiency
  • 957251 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $988,084
93.569 Community Services Block Grant $177,647
21.023 Emergency Rental Assistance Program $176,555
14.231 Emergency Solutions Grant Program $158,886
93.568 Low-Income Home Energy Assistance $145,111
21.027 Coronavirus State and Local Fiscal Recovery Funds $89,499
14.169 Housing Counseling Assistance Program $71,522
14.267 Continuum of Care Program $34,192
14.239 Home Investment Partnerships Program $26,564
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $12,500
81.042 Weatherization Assistance for Low-Income Persons $11,660
21.026 Homeowner Assistance Fund $8,100
14.871 Section 8 Housing Choice Vouchers $8,018
10.565 Commodity Supplemental Food Program $6,644
10.558 Child and Adult Care Food Program $5,820
20.509 Formula Grants for Rural Areas and Tribal Transit Program $3,893