Auditor Description of Criteria, Condition and Effect. The Uniform Guidance requires the Organization to establish internal controls over disbursements and journal entries related to the compliance requirements applicable to allowable costs/cost provisions. The Organization's policies require an independent review of expenditures and journal entries. Evidence of an independent review was not documented for 1 out of 40 disbursements and all 7 journal entries selected for testing. As a result of this condition, the Organization is exposed to increased risk that program funds could be used for unallowable purposes. Auditor Recommendation. We recommend the Organization follow its internal control policies and procedures that require independent review of all disbursement transactions and journal entries. Corrective Action. As of January 1, 2024, Goodwill of Northern Michigan switched accounting software to NetSuite, in which a reviewer is required to review and approve before any journal entry can be posted. A user cannot pass their own journal entry, a reviewer is required to post to the general ledger. Grant related expenses are approved prior to being assembled in the grant packages. All expenses are approved in SAP Concur by the department manager. Some of these expenses are pre-approved before the expense occurs. Additionally, the grant manager reviews the grant packages to be submitted and the corresponding amount to be invoiced. Approval of the grant package is communicated via email. This email will be included in the grant folder. Responsible Person. Annie Kerr, Controller. Anticipated Completion Date. January 1, 2024.