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.