Finding 396682 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-05-14
Audit: 306294
Organization: Accounting Aid Society (MI)

AI Summary

  • Issue: The Organization lacks proper documentation for grant reimbursement requests.
  • Impact: Inadequate controls led to missing ledger details that support reimbursement amounts.
  • Recommendation: Implement stronger documentation practices and close ledgers in a timely manner.

Finding Text

CriteriaCriteria The Organization should have documentation to support reimbursement requests for grant activity. Condition Controls were inadequate to ensure the retention of supporting documentation. Context During the review of the grant reimbursement requests, we noted that the Organization didn’t maintain ledger detail which supports the amount of the grant reimbursement amount. Cause and Effect Management did not retain supporting information and keeps the ledger open until year end.

Corrective Action Plan

Upon review of the findings and associated context, we acknowledge that our controls were inadequate to ensure the retention of supporting documentation for grant reimbursement requests. Specifically, the absence of ledger detail supporting the amount of the grant reimbursement is a concern. In response to this finding, we will take immediate corrective actions: 1. Develop and implement comprehensive procedures for the retention of supporting documentation for grant reimbursement requests. These procedures will include clear guidelines on the types of documentation required and the timeframe for retention. 2. Enhance internal controls to ensure that ledger detail supporting grant reimbursement amounts is consistently maintained and readily accessible for review.1. Provide training to relevant staff members involved in grant management and financial reporting to ensure understanding and compliance with the new procedures. 2. Conduct regular internal audits to monitor adherence to the established procedures and identify any areas for improvement. We are committed to addressing this finding promptly and effectively to ensure compliance with grant requirements and best practices in financial management. We value your insights and feedback and welcome any further guidance or assistance from your team to facilitate this process.

Categories

Cash Management

Other Findings in this Audit

  • 396683 2023-002
    Significant Deficiency
  • 973124 2023-001
    Significant Deficiency
  • 973125 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $200,000
93.137 Community Programs to Improve Minority Health Grant Program $124,461
14.218 Community Development Block Grants/entitlement Grants $90,282
93.568 Low-Income Home Energy Assistance $60,000
21.008 Low Income Taxpayer Clinics $50,000
59.077 Community Navigator Pilot Program $27,714