FAC Explorer

Finding 50027 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-07-30
Audit: 51459
Organization: Paterson Task Force for Community Action Inc. (NJ)
Auditor: Joseph Serra CPA

AI Summary

  • Core Issue: 17.5% of expense vouchers tested lacked proper documentation, which weakens internal controls.
  • Impacted Requirements: Documentation of critical procedures is necessary for recording and recognizing expenditures.
  • Recommended Follow-up: Ensure all expense vouchers are marked as posted in the accounting system to prevent potential errors.

Finding Text

Condition: The Organization has policies and procedures to document transactions and the means to authorize and record these transactions. Examples would include vouchers which accompany each vendor expense invoice and employee time sheets. Key documentation typically requires multiple sign-offs including the performance of critical procedures, thus enhancing the system of internal controls. Criteria: The Organization?s system of controls requires documentation of the performance of critical procedures in the recording and recognition of expenditures. The procedures are to be documented on a voucher which is required to accompany and be attached to each authorized vendor invoice. Cause: Audit procedures tested a sample of expense vouchers. Approximately 17.5% of the expense vouchers tested omitted being marked as to posting in the accounting system.Effect: The lack of procedure documentation on vouchers supporting expense transactions mitigates the system of internal controls. Failure to document critical procedures may be perceived that the procedure was not performed. In the event that the procedure was indeed performed but not documented, the procedure, in this case posting of vendor expense invoices, may be duplicated, thus resulting in errors by overstating program expenses. It is noted that no actual duplication of recording vendor expense vouchers was observed.

Corrective Action Plan

Action Taken: The documentation of posting vendors? invoices is the bookkeeper?s responsibility. During the course of the fiscal year, the bookkeeper position was vacant for a period of time. A new bookkeeper, who is considered very competent, has been hired. Management believes that this matter has already been addressed with the hiring of the competent bookkeeper. Compliance with this control will be that of the Organization?s bookkeeper, Ms. Charity Sims, and overseen by the comptroller, Mr. Darien Allen.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 50028 2022-002
    Significant Deficiency Repeat
  • 50029 2022-001
    Significant Deficiency
  • 50030 2022-002
    Significant Deficiency Repeat
  • 50031 2022-001
    Significant Deficiency
  • 50032 2022-002
    Significant Deficiency Repeat
  • 50033 2022-001
    Significant Deficiency
  • 50034 2022-002
    Significant Deficiency Repeat
  • 50035 2022-001
    Significant Deficiency
  • 50036 2022-002
    Significant Deficiency Repeat
  • 626469 2022-001
    Significant Deficiency
  • 626470 2022-002
    Significant Deficiency Repeat
  • 626471 2022-001
    Significant Deficiency
  • 626472 2022-002
    Significant Deficiency Repeat
  • 626473 2022-001
    Significant Deficiency
  • 626474 2022-002
    Significant Deficiency Repeat
  • 626475 2022-001
    Significant Deficiency
  • 626476 2022-002
    Significant Deficiency Repeat
  • 626477 2022-001
    Significant Deficiency
  • 626478 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.569 Community Services Block Grant $642,510
93.569 Covid 19 Cares Act Csbg Cares Nd 2020 $441,742
93.568 Low Income Home Energy Assistance Program $333,144
93.568 Low Income Home Energy Assistance Arrears Program $108,206
93.569 Special Initiative $54,292