FAC Explorer

Finding 504149 (2022-006)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-10-30
Audit: 326592
Organization: Okanogan County Child Development Association (WA)
Auditor: Cordell Neher & Company PLLC

AI Summary

  • Core Issue: The Association failed to follow its own procurement procedures by not obtaining required documentation for a vehicle purchase.
  • Impacted Requirements: Grant recipients must maintain records that identify fund sources and usage, as outlined in Finding 2022-001.
  • Recommended Follow-Up: Ensure compliance with internal controls by obtaining necessary documentation and management approval for all cash disbursements.

Finding Text

Criteria: As stated above in Finding 2022-001, grant recipients are required to implement financial systems capable of maintaining records that adequately identify the sources of funds for federally assisted activities and the purposes for which the award was used. Condition: A cash disbursement for the purchase of a vehicle did not include documentation supporting the solicitation of at least three bids or a purchase requisition form as required by the client’s internal controls surrounding their procurement procedures. This internal control deficiency is considered to be a significant deficiency. Context: Our procedures included examining general cash disbursements related to the acquisition of property and equipment. Cause: Due to the abrupt departure of their long-tenured finance director, there was no transfer of knowledge on processing of invoices in compliance with the Association’s policy and procedure manual. Effect: By not following their own documented internal controls procedures, the Association puts themselves at risk for material misstatement of financial statements or possible misappropriation of Association assets. Recommendation: We recommend the Association follow its own documented internal controls procedures and ensure that all cash disbursements have proper supporting documentation and proper management approval. View of Responsible Officials: There is no disagreement with this audit finding.

Corrective Action Plan

Recommendation: We recommend the Association follow its own documented internal controls procedures and ensure that all cash disbursements have proper supporting documentation and proper management approval. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment All documents were obtained prior to purchase; Vendor Invoice, Motor vehicle order, OCCDA requisition, three quotes, Purchase Order, Board and Policy Council approval, OHS approval for purchase, Notice of Award. Root Cause Lack of tracking of paperwork. Action Taken While not all required paperwork was attached to the vendor packet when sent to the audit team, all appropriate paperwork was obtained prior to purchase of the vehicle and is on file at OCCDA. Moving forward all staff (Fiscal Assistant and any staff member with purchasing abilities) will be trained on required paperwork for filing/documentation.

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Other Findings in this Audit

  • 504141 2022-001
    Material Weakness Repeat
  • 504142 2022-007
    Significant Deficiency Repeat
  • 504143 2022-008
    Significant Deficiency
  • 504144 2022-009
    Significant Deficiency
  • 504145 2022-002
    Significant Deficiency Repeat
  • 504146 2022-003
    Significant Deficiency Repeat
  • 504147 2022-004
    Significant Deficiency
  • 504148 2022-005
    Significant Deficiency
  • 504150 2022-001
    Material Weakness Repeat
  • 504151 2022-007
    Significant Deficiency Repeat
  • 504152 2022-008
    Significant Deficiency
  • 504153 2022-009
    Significant Deficiency
  • 504154 2022-002
    Significant Deficiency Repeat
  • 504155 2022-003
    Significant Deficiency Repeat
  • 504156 2022-004
    Significant Deficiency
  • 504157 2022-005
    Significant Deficiency
  • 504158 2022-006
    Significant Deficiency
  • 504159 2022-001
    Material Weakness Repeat
  • 504160 2022-007
    Significant Deficiency Repeat
  • 504161 2022-008
    Significant Deficiency
  • 504162 2022-009
    Significant Deficiency
  • 504163 2022-002
    Significant Deficiency Repeat
  • 504164 2022-003
    Significant Deficiency Repeat
  • 504165 2022-004
    Significant Deficiency
  • 504166 2022-005
    Significant Deficiency
  • 504167 2022-006
    Significant Deficiency
  • 1080583 2022-001
    Material Weakness Repeat
  • 1080584 2022-007
    Significant Deficiency Repeat
  • 1080585 2022-008
    Significant Deficiency
  • 1080586 2022-009
    Significant Deficiency
  • 1080587 2022-002
    Significant Deficiency Repeat
  • 1080588 2022-003
    Significant Deficiency Repeat
  • 1080589 2022-004
    Significant Deficiency
  • 1080590 2022-005
    Significant Deficiency
  • 1080591 2022-006
    Significant Deficiency
  • 1080592 2022-001
    Material Weakness Repeat
  • 1080593 2022-007
    Significant Deficiency Repeat
  • 1080594 2022-008
    Significant Deficiency
  • 1080595 2022-009
    Significant Deficiency
  • 1080596 2022-002
    Significant Deficiency Repeat
  • 1080597 2022-003
    Significant Deficiency Repeat
  • 1080598 2022-004
    Significant Deficiency
  • 1080599 2022-005
    Significant Deficiency
  • 1080600 2022-006
    Significant Deficiency
  • 1080601 2022-001
    Material Weakness Repeat
  • 1080602 2022-007
    Significant Deficiency Repeat
  • 1080603 2022-008
    Significant Deficiency
  • 1080604 2022-009
    Significant Deficiency
  • 1080605 2022-002
    Significant Deficiency Repeat
  • 1080606 2022-003
    Significant Deficiency Repeat
  • 1080607 2022-004
    Significant Deficiency
  • 1080608 2022-005
    Significant Deficiency
  • 1080609 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.870 Maternal, Infant and Early Childhood Homevisiting Grant Program $107,617
93.600 Head Start $107,048
93.590 Community-Based Child Abuse Prevention Grants $28,710
10.558 Child and Adult Care Food Program $17,968