Finding Text
UNION BAPTIST CHURCH-SCHOOL, INC. Schedule of Findings and Questioned Costs For the Year Ended June 30, 2022 Finding 2022 ? 001 Department of Health and Human Services Federal Assistance Listing No. 93.600 Head Start Program Internal Control Deficiency over Cash Disbursement Process Repeat Finding: No Condition: During our testing of internal controls, we noted disbursements paid via EFT did not show approval with two authorized signatures (Board Member and Executive Director). Criteria: Per the Financial Policies and Procedures, all disbursements are required to have two authorized signatures on a check, which would include a Board Member and the Executive Director. Cause: The control process over disbursements for EFTs had not been identified and the two-signature authorization was not identified in any of the supporting documents provided. Effect: The Organization has disbursements being paid via EFT that is being properly supported by the two-signature authorization requirement. Disbursements can be made via EFT that are not allowable and without permission from the second signer. Recommendation: We recommend the Organization update their financial policies and procedure to include the controls over disbursements for EFT and start following these procedures as soon as possible. Management Response: See schedule of corrective action.