Finding 636527 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-10-23

AI Summary

  • Core Issue: The Organization mistakenly paid for services not received due to improper segregation of utility bills.
  • Impacted Requirements: Internal controls over cash disbursements were not followed, leading to erroneous disbursements.
  • Recommended Follow-Up: Management should strengthen controls on cost identification to prevent future errors.

Finding Text

Finding 2022-001 Condition The Organization paid for services rendered to another Organization. Criteria The Organization?s internal control over cash disbursements of project funds requires proper cost identification and segregation before payment. Cause Utility bills were not properly segregated before processing. Effect Organizational funds were erroneously disbursed for services it did not receive. Recommendation Management should re-evaluate controls around cost identification. Views of management Management concurs. Auditors? summary of the auditee?s comments on the findings and recommendations Management will re-evaluate controls around cost identification in efforts to minimize potential error going forward.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $2.87M