FAC Explorer

Finding 60995 (2022-004)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-04-05
Audit: 49622
Organization: Refugee & Immigrant Self-Empowerment, Inc. (NY)
Auditor: Efpr Group Cpa's PLLC

AI Summary

  • Core Issue: The Organization lacks a formal approval process for purchases made by the Executive Director, violating internal control requirements.
  • Impacted Requirements: Internal controls over financial reporting are insufficient, leading to non-compliance with established procedures.
  • Recommended Follow-Up: Develop and implement a Board approval process for Executive Director expenditures to strengthen internal controls.

Finding Text

Criteria - Internal controls require that the Organization must receive approval for purchases made. Condition - The Organization?s current internal control process does not include an approval process by the Board of Directors for purchases made by the Executive Director. The Executive Director made purchases with grant funding from both programs tested without an authorization procedure in place as is done for other employees. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization receive approval from the Board of Directors for any expenditures made by the Executive Director. Management?s Response - (a) Comments on the finding and recommendation: Approval process has been developed subsequent to September 30, 2022. (b) Actions Taken: We are working with an HR consultant to update our staff handbook, update payroll processing system, review, and update time management, and reassure all the HR procedures and guidelines are up to date and meet the state and federal requirements. We are also looking for some resources and non-profit financial management professionals to update our administrative and financial manuals and guidelines to put more controls in place to mitigate all financial risks. (c) Anticipated Completion Date: July 31, 2023.

Corrective Action Plan

Name of Auditee: Refugee & Immigrant Self-Empowerment, Inc. Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended September 30, 2022 CAP Prepared by: Haji Adan, Executive Director Phone: 315-214-4480 (A) Current Finding on the Schedule of Findings and Responses (4) Audit Finding 2022-004 (a) Comments on the finding and recommendation: Approval process has been developed subsequent to September 30, 2022. (b) Actions Taken: We are working with an HR consultant to update our staff handbook, update payroll processing system, review, and update time management, and reassure all the HR procedures and guidelines are up to date and meet the state and federal requirements. We are also looking for some resources and non-profit financial management professionals to update our administrative and financial manuals and guidelines to put more controls in place to mitigate all financial risks. (c) Anticipated Completion Date: July 31, 2023.

Categories

Procurement, Suspension & Debarment Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 60994 2022-003
    -
  • 60996 2022-005
    Significant Deficiency
  • 60997 2022-003
    -
  • 60998 2022-004
    Material Weakness
  • 60999 2022-005
    Significant Deficiency
  • 61000 2022-004
    Material Weakness
  • 61001 2022-005
    Significant Deficiency
  • 61002 2022-004
    Material Weakness
  • 61003 2022-005
    Significant Deficiency
  • 637436 2022-003
    -
  • 637437 2022-004
    Material Weakness
  • 637438 2022-005
    Significant Deficiency
  • 637439 2022-003
    -
  • 637440 2022-004
    Material Weakness
  • 637441 2022-005
    Significant Deficiency
  • 637442 2022-004
    Material Weakness
  • 637443 2022-005
    Significant Deficiency
  • 637444 2022-004
    Material Weakness
  • 637445 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.576 Refugee and Entrant Assistance_discretionary Grants $159,758
19.522 Overseas Refugee Assistance Programs for Strategic Global Priorities $118,300
10.311 Beginning Farmer and Rancher Development Program $100,129
10.225 Community Food Projects $92,859
19.510 U.s. Refugee Admissions Program $83,509