Finding 519338 (2024-001)

Condition: During our audit we noted that management did not have approval controls over invoices reimbursed by the federal program and approval of subrecipient monitoring reports. Criteria: The Organization must establish and maintain effective internal controls over the financial award that provides reasonable assurance that the non-Federal entity is managing the Federal Award in compliance with Federal statutes, regulations and the terms and conditions of the federal award per CFR 200.303. These requirements detail the information that must be included in the Organization's internal control. Cause: Management did not design and implement internal controls to document approval of invoices reimbursed by the federal program and subrecipient monitoring reports. Approvals were obtained verbally and were not documented. Effect: The absence of controls over disbursements and subrecipient monitoring incurred lead to an increased risk of errors and noncompliance in the financial statements, which could misrepresent the Organization's financial statements Recommendation: We recommend that the Organization implements a process to ensure that management documents all approvals and that approvals are occurring by proper personal.