Finding Text
2024 – 004 Disbursements not receiving proper approval - Block Grants for Prevention and Treatment
of Substance Abuse – ALN 93.959 (Material Weakness under Government Auditing Standards and
Noncompliance)
Condition: During testing auditor reviewed multiple disbursements that did not have documented
approval.
Criteria: Uniform Guidance requires entities receiving federal funding to have robust internal controls
around the disbursement of funds.
Cause: The prior bookkeeper did not obtain sufficient approval relating to disbursements. Effect: This exposes JACOA to a greater risk of fraud, loss, and undetected error.
Recommendation: We recommend all disbursements receive proper documented approval before the
payment of invoices.
Response: Documented approval will be obtained for all disbursements prior to processing payments.