Finding Text
CONDITION: Single Audit testing revealed that for some expenses, the Organization did not obtain proper approval, or have documentation to show approval, prior to making purchases. CRITERIA: Per the Organization’s internal controls, all expenses must be approved by the Executive Director or member of the Board of Directors prior to the expense occurring. CAUSE: For some purchases, oral approvals were given instead of written approvals. CONTEXT: Single Audit testing revealed that out of a sample population of 25 purchases totaling $9,751, there were 7 purchases totaling $1,424 that were made without written approvals prior to purchase. In total, there were 283 purchases totaling $77,505. EFFECT: Evidence of proper approvals was missing calling into question whether these purchases were approved or not. Proper approvals are necessary to ensure that purchases are proper, reasonable, and suitable for their intended purposes. RECOMMENDATION:It is recommended that all expenses be approved in writing by the Executive Director or member of the Board of Directors prior to purchase. RESPONSE: The Organization agrees with this finding and will adhere to the corrective action plan on page 29.