FAC Explorer

Finding 400773 (2022-004)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2024-06-13
Audit: 308791
Organization: Great Northwest Education Cooperative (ND)
Auditor: Brady Martz & Associates PC

AI Summary

  • Core Issue: Invoices were paid without proper approval documentation, violating internal control requirements.
  • Impacted Requirements: Compliance with the Allowable Costs criterion under the Head Start Cluster program.
  • Recommended Follow-Up: Ensure the Executive Director documents approval for all invoices before payment to mitigate financial risks.

Finding Text

2022-004 Approval of Invoices – Significant Deficiency Federal Program: AL 93.600 Head Start Cluster Compliance Requirement: Allowable Costs Criteria: An appropriate system of internal controls requires that the Coop Executive Director review and approve all invoices prior to payment being made. Condition/Context: The Coop’s invoices were not documented as approved prior to payment being made. Cause: Invoices should be reviewed and approved prior to payment being made; however, no documentation was noted. Effect: There is an increased risk of material misstatement to the Coop’s financial statements. Recommendation: The Coop’s Executive Director should document the approval of all invoices. View of responsible officials and corrective actions: We agree with this finding. See corrective action item 2022-004. Questioned Costs: None. Indication of repeat finding: This is not a repeat finding from the prior year.

Corrective Action Plan

Contact Person – Ben Schafer, Executive Director Corrective Action Plan – The Executive Director will review and approve, with documentation, all invoices prior to payment being made. Completion Date – The Coop will implement this corrective action plan in the next fiscal year.

Categories

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 400774 2022-005
    Significant Deficiency
  • 977215 2022-004
    Significant Deficiency
  • 977216 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $994,114
84.287 Twenty-First Century Community Learning Centers $199,557
84.048 Career and Technical Education -- Basic Grants to States $6,000