FAC Explorer

Finding 393804 (2022-002)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2024-04-19
Audit: 303990
Organization: The Dream Program, Inc. (VT)
Auditor: McSoley McCoy & CO

AI Summary

  • Core Issue: Inadequate documentation of invoice approvals for cash disbursements.
  • Impacted Requirements: Lack of internal controls increases risk of errors and potential asset misappropriation.
  • Recommended Follow-Up: Implement a formal procedure for reviewing and approving all cash disbursements.

Finding Text

Finding No.: 2022-002 (2021-002) Criteria Cash disbursements should have an internal control environment that requires key controls to ensure funds are properly disbursed and reported. Conditions Found During our audit, we noted the Organization’s did not properly document approval on invoices for various expenses. Effect Without adequate controls surrounding cash disbursements, there is an opportunity for errors, or misappropriation of assets, to go undetected. The conditions found appear to be systemic in nature and is considered to be a significant deficiency in internal controls. Cause The Organization has not developed a formal documentation procedure to ensure all expenses are properly reviewed and approved. Recommendation We recommend cash disbursements be appropriately reviewed and approved to ensure the monies are accounted for. Views of Responsible Officials Management agrees with the recommendation and will work with the staff to educate them on the importance of a strong internal control environment.

Corrective Action Plan

Auditors Finding: 2022-002 (2021-002) Issue: The DREAM Program did not properly document approval on invoices for various expenses. Root Cause: The Organization has not developed a formal documentation procedure to ensure all expenses are accounted for and there are limited staff in our business and finance department. Corrective Action Planned: ● In order to address the capacity challenges of a small nonprofit with limited staffing, we will review our established internal controls for opportunities to better allocate responsibilities across available staff and board members.. ● We will further discuss financial risks, cash disbursements, internal controls, and how to split responsibilities at our quarterly internal audit meetings. Anticipated Completion Date: 8/31/24 Persons Responsible for Corrective Actions: Mike Foote, Executive Director; Christina Cramer, Business Manager; Kayla Brosilow, Operations Director

Categories

Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 393805 2022-002
    Material Weakness Repeat
  • 393806 2022-002
    Material Weakness Repeat
  • 970246 2022-002
    Material Weakness Repeat
  • 970247 2022-002
    Material Weakness Repeat
  • 970248 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
94.006 Americorps $1.13M
16.726 Juvenile Mentoring Program $237,324
84.425 Education Stabilization Fund $43,746
93.788 Opioid Str $3,834