Finding Text
Finding #2023-003:
Type: Significant deficiency over reporting
Assistance Listing:
21.027 Coronavirus State and Local Recovery Funds
Requirement:
There should be controls over the preparation and submission of required reports.
Condition/Context:
Four out of four reports tested were prepared and submitted by the same individual without supervisory review and approval before submission.
Cause:
This oversight control is not part of the Organization’s policies.
Effect:
Reports may contain inaccurate information.
Questioned Costs:
None.
Recommendation:
We recommend documented review and approval of reports before submission by a member of management different from the preparer.
Management Response:
The finance team has been expanded and with the guidance of a nonprofit finance consultant additional roles are set to be established so that invoices can be prepared by someone other than the approver. In the immediate interim, invoices will be reviewed and signed by the CEO before submission by the CFO.