Finding 618599 (2022-003)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-05-07
Audit: 47803
Organization: Harpswell Coastal Academy, Inc. (ME)
Auditor: One River CPAS

AI Summary

  • Core Issue: Lack of proper approval for expenditures due to the Director's unchecked access to invoices and payments.
  • Impacted Requirements: Internal controls are insufficient to ensure purchases are for appropriate purposes, risking improper spending.
  • Recommended Follow-Up: Management should consider hiring additional staff or involving a board member to oversee purchase approvals.

Finding Text

Criteria: Management is responsible for the design and implementation of internal controls to identify that expenditures were for appropriate purposes. Condition and Context: The Director of Business, Finance and Operations receives all invoices, can enter invoices into the financial system, submit for payment and make payment without clear documentation of approval by management. Cause: Small administrative staff and funding to include other staff. Effect: Purchases could be made for improper purposes or in incorrect amounts. Questioned Costs: None Recommendation: Management should seek appropriate staffing to add an approval for each purchase or include a board member in approving purchases. Views of Responsible Officials and Planned Corrective Actions: Staffing levels and time available have made it difficult to implement many internal controls. Due to closing the school in 2023, management will not be able to take corrective actions.

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Other Findings in this Audit

  • 42157 2022-003
    Significant Deficiency
  • 42158 2022-004
    Material Weakness
  • 618600 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $332,106
84.010 Title I Grants to Local Educational Agencies $28,924
84.424 Student Support and Academic Enrichment Program $8,836
84.367 Improving Teacher Quality State Grants $4,914
84.027 Special Education_grants to States $4,613