Finding 519881 (2023-002)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2025-01-22
Audit: 339214
Organization: North River Commission (IL)
Auditor: Maharlika PLLC

AI Summary

  • Answer: 9 out of 25 samples lacked proper review and approval before payment.
  • Trend: This indicates a potential pattern of insufficient oversight in the payment process.
  • List: Ensure all payments have documented approval; review current processes for compliance; implement training for staff on approval requirements.

Finding Text

During the compliance testing, it was noted that the supporting documentation for 9 of 25 samples provided did not reflect review and approval by an authorized approver(s) prior to payment.

Corrective Action Plan

With an executive leadership shift that took place in January of 2024, North River Commission, has been revising its staff positions, financial and organization’s processes and its policies, in order to appropriately manage its rapid growth. North River Commission will enforce policies and strict management of financial operations moving forward. Specific modifications and implementations of processes to be completed by North River Commission staff are as follows as they relate to the above findings: Action 1: Review and update payment approval policies to ensure clear procedures for documentation and authorization. Action 2: Review and update the payment approval policy to ensure that all payments require documentation of review and approval by authorized personnel. Action 3: Provide training for all personnel involved in payment processing on the importance of proper approval and documentation procedures. Conduct training sessions for finance and procurement staff on the updated payment approval procedures, emphasizing the importance of proper documentation. Action 4: Implement a system to track the approval status of each payment, with automatic alerts for missing approvals prior to payment processing. The organization is committed to strengthening its internal controls around payment approval. The corrective actions outlined in this plan will address the audit findings and help ensure that all payments are properly reviewed and authorized in compliance with internal policies.

Categories

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Other Findings in this Audit

  • 1096323 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.287 Twenty-First Century Community Learning Centers $554,673
84.425 Education Stabilization Fund $88,497
21.027 Coronavirus State and Local Fiscal Recovery Funds $44,996
14.218 Community Development Block Grants/entitlement Grants $37,393
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $14,630