Finding 43792 (2022-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-09-04

Audit: 51433

Organization: League for the Blind & Disabled, Inc. (IN)

Auditor: Baden Gage & Schroeder LLC

AI Summary

Core Issue: Missing documentation for expenditures under the federal grant raises concerns about compliance and internal controls.
Impacted Requirements: Lack of proper approval and substantiation for expenses violates internal control criteria.
Recommended Follow-Up: Implement procedures for adequate documentation and ensure proper segregation of duties to prevent future issues.

Finding Text

Finding 2022-002, AL No. 93.432 Centers for Independent Living: Condition: Supporting documentation for expenditures paid for under the federal grant and/or the documentation of the approval to pay the expenses by an authorized individual could not be provided for several items selected for testing. Criteria: Internal controls should be in place that provide reasonable assurance that expenses reimbursed under the federal grant are paid only after substantiation by purchase order, invoice, and approval of the accuracy of the expenditure by the appropriate individuals. Cause/Effect: Due to transitions in personnel, controls and segregation of duties were not consistently applied nor was adequate documentation supporting the expenditures of the approval for payment able to be located for all transactions being tested. Recommendation: Procedures should be implemented to ensure all expenditures are substantiated by adequate supporting documentation for payee, amount, and authorization for payment. Segregation of duties should be such that no one individual has sole access or responsibility to add new vendors, approve invoices and purchase orders, record activity in the general ledger, reconcile bank accounts, and authorize payments. Views of Responsible Officials and Planned Corrective Actions: See attached corrective action plan.

Corrective Action Plan

Findings: 2022-001, 2022-002 Contact Person Responsible for Corrective Action: Mohammed Sayeed, MBA, Chief Financial Officer Contact Phone Number: 260-441-0551 Contact Email: mohammeds@the-league.org Alternate Contact Person: John Guingrich, President/CEO Alternate Contact Phone: 260-441-0551 Alternate Contact Email: johng@the-league.org Views of Responsible Officials: We concur with these findings. Description of Corrective Action Plan: During FY23 the organization has improved on the staffing shortages in the finance/accounting department and is also adding a Chief Operating Officer as another administrative officer for the organization. Having a fully staffed department and additional administrative officer will help with segregation of duties such as adding vendors, approving invoices, and purchase orders. Also, during FY23 the CFO has been working to strengthen the documentation of expenditure approval and retention of supportive information. One example is a new purchase order that identifies the levels of approval, type of expense, what program or department should be charged the expense, what funding source it should be allocated to, how the expenses should be paid, and has supportive documentation attached. We will continue to build upon the implementation and documentation of these processes and procedures. Anticipated Completion Date: December 31, 2023

Other Findings in this Audit

43793 2022-002

Significant Deficiency
620234 2022-002

Significant Deficiency
620235 2022-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
84.177	Rehabilitation Services_independent Living Services for Older Individuals Who Are Blind	$160,275
93.432	Acl Centers for Independent Living	$107,118
93.071	Medicare Enrollment Assistance Program	$92,500
14.231	Emergency Solutions Grant Program	$33,570
93.369	Acl Independent Living State Grants	$26,121