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.