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.