Finding Text
Internal Controls over Cash Disbursements MATERIAL WEAKNESS Criteria: The Organization is required to have a financial control system in place to properly account for authorized and documented financial transactions Condition: During the audit, I noted numerous instances where cash disbursements were not properly approved, recorded and/or supported by proper documentation based on my detailed review. During my testing of 40 cash disbursements, I noted that twenty-one (21) disbursements which were not properly supported by documentation and/or properly authorized. Effect: Disbursements could be misclassified or paid to unauthorized vendors as well as being paid for unauthorized and/or disallowed costs. Cause: Lack of accounting supervisory review/oversight and lack of adhering to establish policies and procedures. Questioned Costs: Undeterminable Recommendations: Management should recruit, specifically an onsite Finance Officer, and develop accounting personnel to review and enforce current policies and procedures as well as implement additional review and supervisory procedures to ensure that all disbursements are properly approved, documented and recorded