Finding 771435 (2022-001)

Significant Deficiency Repeat Finding
Requirement
LM
Questioned Costs
-
Year
2022
Accepted
2023-03-24
Audit: 178572
Organization: Somerset Academy, Inc. (FL)
Auditor: Hlb Gravier LLP

AI Summary

  • Core Issue: Purchase orders were issued after purchases were made, violating the Organization's financial policies.
  • Impacted Requirements: The requirement for prior approval of purchase orders was not consistently followed, risking unauthorized purchases.
  • Recommended Follow-Up: Ensure adherence to the purchase order policy and provide training and oversight to prevent future issues.

Finding Text

SECTION III ? FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARDS PROGRAMS A. Internal Control ? None ML ? 2021-01 Purchase Orders Criteria: The Organization?s financial policies and procedures require that for most purchases, a purchase order be made and approved by the appropriate level of management before the order is placed with a vendor. Only certain purchases such as utilities are exempt from this requirement. Condition: While the Organization did use purchase orders consistently on all purchases tested, we noted several instances where the purchase order was issued after the purchase was made. Cause: The Organization?s policy regarding purchases orders were not followed for several purchases tested. Effect: Although not noted in any of the items tested, failure to follow the Organization?s policy may lead to unauthorized or improper purchases. Recom- mendation: We recommend that the Organization adhere to the purchase order policy and provide additional training and oversight as necessary. Views of Responsible officials: See corrective action plan for views of responsible officials. B. Compliance ? None

Categories

Internal Control / Segregation of Duties Procurement, Suspension & Debarment

Other Findings in this Audit

  • 194993 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $16.87M
10.553 School Breakfast Program $8.90M
84.010 Title I Grants to Local Educational Agencies $7.38M
84.282 Charter Schools $1.52M
84.027 Special Education_grants to States $1.07M
84.424 Student Support and Academic Enrichment Program $858,598
84.287 Twenty-First Century Community Learning Centers $770,029
84.367 Improving Teacher Quality State Grants $657,969
84.048 Career and Technical Education -- Basic Grants to States $111,948
84.365 English Language Acquisition State Grants $69,500
84.031 Higher Education_institutional Aid $24,328
84.173 Special Education_preschool Grants $8,175