Finding Text
Criteria - Internal controls require that the Organization must receive approval for purchases made.
Condition - Several invoices and receipts had no noted review or approval for the payment. Out of 40 expenditures examined, 17 were missing approvals.
Cause - Resulted from a lack of internal controls over financial reporting.
Effect - The Organization is not following proper internal control procedures.
Questioned Costs - None identified.
Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization maintains documented review and approvals for expenditures.
Management’s Response - (a) Comments on the finding and recommendation: Refugee & Immigrant Self-Empowerment, Inc. acknowledges the need for the approval of purchases within the organization.
(b) Actions Taken: Refugee & Immigrant Self-Empowerment, Inc. will conduct a thorough review of current expenditure review and approval processes to identify gaps and weaknesses. Clear documentation standards and procedures will be developed, outlining roles, responsibilities, and methods for maintaining expenditure review and approval records. Staff members will receive comprehensive training on these new standards, and compliance will be regularly monitored.
(c) Anticipated Completion Date: August 31, 2024