Finding Text
Condition – Management reviewed expenditures to determine alignment with cash drawdowns which was evidenced by approved draw down requests. However, due to limitations in the recordkeeping practices at the time, this alignment was not easily trackable in the financial records.
Cause – Turnover of finance director with insufficient supporting financial records.
Criteria – Federal draw downs are done after expenditures have been incurred. Support should be maintained to corroborate timing of expenditures.
Effect – Based on the data in the general ledger, we reviewed the timing of expenditures yet cannot determine for certain if there were timing issues.
Recommendation – Maintain a listing of expenditures in the general ledger system that correspond with each cash drawdown request. This list should be reviewed and approved prior to each drawdown occurring.
Management’s Response – Management is aware of the difficulties relating to the 2023 audit process and has brought in a new finance director as well as a consultant to properly identify expenditures in the general ledger/accounting system that correspond with each drawdown request that occurred during 2024 and forward.