Finding Text
Finding 2022-001 Lack of Approval Process for Disbursements Criteria: The Organization?s management is responsible for proper internal control over financial reporting, including proper approval for payments. Condition: During the audit, we noted that thirteen of twenty-five transactions selected for cash disbursement testing lacked proof of approval for payment. Cause: The Organization?s procedures related to the approval process were not adequate to properly authorize transactions. Effect: As a result, BMSS was therefore unable to determine if authorization had occurred for the transaction in question. Recommendation: We recommend that a form or process be developed to ensure that disbursements are approved for payment. This will ensure that funds are used for appropriate purposes accordance with grant provisions.