Finding Text
2023-001 Significant Deficiency in Internal Controls over Compliance - Activities Allowed or Unallowed and Allowable Costs/Cost Principles. IDENTIFICATION OF MAJOR PROGRAM - 93.592 Family Violence Prevention and Services/Discretionary. CRITIERA or SPECIFIC REQUIREMENT - Uniform Guidance 2 C.F.R § 200.303 The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). (b) Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards. (c) Evaluate and monitor the non-Federal entity's compliance th statutes, regulations and the terms and conditions of Federal awards. (d) Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings. (e) Take reasonable measures to safeguard protected personally identifiable information and other information the Federal awarding agency or pass-through entity designates as sensitive or the non-Federal entity considers sensitive consistent with applicable Federal, State, local, and tribal laws regarding privacy and responsibility over confidentiality. CONDITION - WISH did not maintain expenditure support and/or evidence of expenditure approvals in accordance with its own policies and procedures. CAUSE - Management was heavily involved in daily operations and receive a significant volume of requisitions so they were often discussed and approved verbally in order to process a check timely within the next check run. EFFECT OR POTENTIAL EFFECT - Lack of substantiation that internal controls are operating effectively in order to allow management, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. QUESTIONED COSTS - None known and likely were below program materiality and questioned costs threshold. CONTEXT - Three credit card expenditures did not have a receipt or invoice to support the charge. For nonpayroll expenditures, a Requisition Form is to be used and contains a line for initiator's signature, supervisor's, and Executive Director's. Auditor noted six instances where the form was either not signed by the Executive Director, or not signed at all. IDENTIFICATION OF REPEAT FINDING - Not Applicable. RECOMMENDATIONS - We recommend that all relevant documentation is retained in order to support approved expenditures and which follow WISH policy and procedures as well as the Uniform Guidance. VIEWS OF RESPONSIBLE OFFICIALS - See corrective action plan