Finding 393807 (2023-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2023

Accepted

2024-04-19

Audit: 303991

Organization: The Dream Program, Inc. (VT)

Auditor: McSoley McCoy & CO

AI Summary

Core Issue: Inadequate documentation of invoice approvals for cash disbursements.
Impacted Requirements: Internal controls for proper fund disbursement and reporting are not being met.
Recommended Follow-Up: Implement formal procedures for reviewing and approving all cash disbursements.

Finding Text

Finding No.: 2023-001 (2022-002) 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 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 currently implementing written procedures.

Corrective Action Plan

Auditors Finding: Finding No.:2023-001 (2022-002) Issue: The DREAM Program did not properly document approval on invoices for various expenses. Root Cause: The organization had not implemented an explicit approval process throughout the whole year being audited. Corrective Action Planned: ● Effective June 2023, the Organization requires all invoices to be explicitly approved by both the operations director and the executive director in Bill.com prior to the payment being sent out. ● All transactions are reviewed by the bookkeeper at the close of month and a CPA quarterly. ● Relevant staff will meet post-audit to debrief, and continue to meet quarterly during existing “internal audit” meetings, to better identify areas for improvement. The organization will continue to strengthen our review process by initiating more involvement from our Board of Directors’ Finance Committee. Persons Responsible for Corrective Actions: Mike Foote, Executive Director; Christina Cramer, Business Manager; Kayla Brosilow, Operations Director; Bookkeeper; External Accountant; Board Finance Committee Meeting

Other Findings in this Audit

393808 2023-001

Material Weakness Repeat
393809 2023-001

Material Weakness Repeat
970249 2023-001

Material Weakness Repeat
970250 2023-001

Material Weakness Repeat
970251 2023-001

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
94.006	Americorps	$1.00M
16.726	Juvenile Mentoring Program	$74,633
94.021	Volunteer Generation Fund	$21,844
84.425	Education Stabilization Fund	$20,000