Finding Text
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-03: Approval for expenditures Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization. Condition: The Organization does not consistently document an approval process on source documents for expenditure. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure source documents are consistently approved by a member of management prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.