Finding 627459 (2022-002)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-05-30
Audit: 50612
Organization: The Dream Program, Inc. (VT)

AI Summary

  • Core Issue: Invoices for expenses lacked proper approval documentation, indicating weak internal controls over cash disbursements.
  • Impacted Requirements: The absence of adequate controls increases the risk of errors and potential asset misappropriation.
  • Recommended Follow-Up: Implement a formal procedure for reviewing and approving cash disbursements to strengthen internal controls.

Finding Text

Finding No.: 2022-002 (2021-002) Criteria Cash disbursements should have an internal control environment that requires key controls to ensure funds are properly disbursed and reported. Conditions Found During our audit, we noted the Organization?s did not properly document approval on invoices for various expenses. Effect Without adequate controls surrounding cash disbursements, there is an opportunity for errors, or misappropriation of assets, to go undetected. The conditions found appear to be systemic in nature and is considered to be a significant deficiency in internal controls. Cause The Organization has not developed a formal documentation procedure to ensure all expenses are properly reviewed and approved. Recommendation We recommend cash disbursements be appropriately reviewed and approved to ensure the monies are accounted for. Views of Responsible Officials Management agrees with the recommendation and will work with the staff to educate them on the importance of a strong internal control environment.

Categories

Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 51015 2022-002
    Material Weakness Repeat
  • 51016 2022-002
    Material Weakness Repeat
  • 51017 2022-002
    Material Weakness Repeat
  • 627457 2022-002
    Material Weakness Repeat
  • 627458 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
94.006 Americorps $973,403
16.726 Juvenile Mentoring Program $237,324
84.425 Education Stabilization Fund $43,746
93.788 Opioid Str $3,834