Finding Text
2022-001 ? Material Weakness - Vendor Maintenance SNAP Cluster - Assistance Listing No. 10.561 Temporary Assistance for Needy Families - Assistance Listing No. 93.558 Criteria: Controls over financial reporting should be designed to ensure that the opportunity for a material error, noncompliance or fraud can be corrected or detected in a timely manner. A review of the master vendor file should occur on a regular basis and be performed by a member of management who is not involved in the procurement or disbursement process. Further, the design of the controls should include management approval for any changes made to the master vendor file. Condition: During a review of the design and implementation of controls over the purchasing cycle, we noted that Goodwill did not perform a documented review of the master vendor file. Cause: Controls have not been designed to require a documented review of the master vendor file on a recurring basis (i.e., at least annually, and when updates are needed). Effect: Because of the improperly designed controls described above, vendors may be added or deleted from the master vendor file without proper approval increasing the possibility for inappropriate payments to vendors, and errors or noncompliance that may go undetected. Questioned Costs: None noted. Identification as a Repeat Finding: Not a repeat finding. Recommendation: Goodwill should design internal controls that ensure a review of the master vendor file. This review should be conducted at least annually and whenever a change is being made to the master vendor file. Management should document review and approval of the change made to the vendor record, which should include review of the support for the vendors information to validate that the vendor record is accurately populated. Views of Responsible Officials: See management?s response in the following corrective action plan.