Finding 2022-001: Significant Deficiency over Financial Reporting Responsible Official?s Response and Corrective Action Plan The Board approved a new Credit Card Policy for the Sorority in May 2021. Credit cards are an integral part of the mix of instruments available for managing payment relationships with vendors. At present, the Sorority maintains only three (3) sponsored credit cards. Generally, payments to vendors through credit card instruments account for less than three percent (3%) of all expenditures processed by the organization. Nevertheless, we recognize and acknowledge that a material risk of exposure is present. To mitigate this risk, the Sorority has established a Board-level committee whose sole responsibility was to establish a set of policies and guidelines around: 1. Who may have access to Sorority-sponsored credit cards, 2. The range of limits that will be available to staff on individual cards, 3. The frequency of required reconciliations by the Accounting and Finance Department, 4. The chains of approval that will be required for each in the range of limits established by the Board; and 5. The consequence(s) of deviation from the Board?s mandated Policy. The Board?s guidelines are now published and available; however, no new cards will be issued in the near-term. Further, the Sorority?s Accounting Department continues its practice of conducting robust, monthly reviews of each line-item appearing on the three (3) credit card statements. The Team will continue to make certain that receipts are present for all expenditures that exceed $25; and will monitor the types of transactions processed via credit card to ensure their legitimacy. Planned Implementation Date of Corrective Action April 2023 Person(s) Responsible for Corrective Action Pamela R. Hill, Treasurer Meskerem Alemu, Sr. Accounting Manager