Finding 570914 (2023-001)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2025-07-10
Audit: 361880
Organization: YWCA New Hampshire (NH)

AI Summary

  • Core Issue: A payment to a vendor lacked proper invoice documentation, violating 2 CFR 200.403(g).
  • Impacted Requirements: Inadequate record-keeping led to misplaced invoices, weakening internal controls over financial activities.
  • Recommended Follow-Up: Establish formal processes to ensure all supporting documentation is securely filed and retained for future reference.

Finding Text

Criteria: Disbursements made to vendors ought to be supported with an invoice. Cost principles in 2 CFR 200.403(g) require adequate documentation. Condition: A transaction selected for testing did not have adequate documentation to support the payment that was made. Cause: The lack of a formal record keeping process to allow for invoices to be retained in a rational manner caused documentation to be misplaced. Effect or potential effect: Internal control over the financial activities of the YWCA New Hampshire are weakened. Failure to obtain and/or retain a receipt to support payment increases the risk that an inappropriate disbursement is made. Questioned costs: The questioned cost is immaterial as related to this charge without documentation. Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform Guidance. The organization has not required a compliance audit in previous years and management was not aware of the various requirements of the Uniform Guidance. This was a single instance from a nonstatistical haphazard sample. 29 Recommendation: We recommend that processes and procedures be developed to ensure that all supporting documentation is filed and retained in a safe and secure location for future reference, as needed. Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.

Corrective Action Plan

Description of Finding: A disbursement made to a vendor was not supported with adequate documentation to support the payment that was made. Planned Corrective Action: To address the lack of adequate documentation for vendor disbursements, YWCA New Hampshire will implement the following measures: 1. Policy Update: Revise the Financial Management Policy to mandate that all disbursements require supporting documentation, including invoices, purchase orders, and approval signatures, before processing. 2. Training: Conduct mandatory training for all staff involved in procurement and payment processes on proper documentation requirements by June 30, 2025. 3. Internal Review Process: Establish a pre-payment review checklist to be completed by the Finance Manager to ensure all required documentation is present. 4. Document Retention: Implement a digital filing system, through Bill.com, to store and organize all disbursement-related documents, ensuring easy retrieval for audits. 5. Monitoring: The CFO will conduct monthly reviews of a sample of disbursements to verify compliance, with findings reported to the Executive Director. Responsible Party: Finance Manager, overseen by Caroline Catlender, Executive Director Anticipated Completion Date: July 31, 2025

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $252,827
14.218 Community Development Block Grants/entitlement Grants $173,991
93.493 Congressional Directives $94,240
14.267 Continuum of Care Program $60,543
16.736 Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Stalking, Or Sexual Assault $36,334
16.017 Sexual Assault Services Formula Program $31,629
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $28,302
93.136 Injury Prevention and Control Research and State and Community Based Programs $15,310
21.027 Coronavirus State and Local Fiscal Recovery Funds $10,000
16.588 Violence Against Women Formula Grants $9,321