Finding Text
Condition: Review and approval of cash disbursements were not documented. Criteria: Internal controls should be in place that provide reasonable assurance that cash disbursements are reviewed and approved. Cause: The Organization did not follow procedures to ensure documentation of the review and approval of cash disbursements. Effect: Lack of review and approval of cash disbursements could lead to inappropriate or fraudulent disbursements not being prevented or detected and corrected timely, resulting in misstatements to the financial statements. Recommendation: Procedures should be implemented to ensure cash disbursements are reviewed and approved by an individual who does not have custody or recordkeeping responsibilities. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and recommended procedures were implemented prior to year end.