Finding Text
Condition: Prior to November 14, 2022, invoices paid did not require documentation of
approval. The former executive director paid invoices with no review or
approval. Invoices to support the expenditures was not consistently
retained.
Criteria: Internal controls should be in place to provide that expenditures are only
paid after they are reviewed and approved. Invoices or other documentation
should be retained to support expenditures.
Cause: There were no procedures in place to require authorization of expenditures
or filing of invoices to support expenditures.
Effect: Because of the failure to require approval and the lack of documentation to
support expenditures, there is more than a remote possibility that material
misstatements could occur without detection. Because of the failure to
retain evidence for expenses, it wasn’t possible to issue an opinion about
the existence and carrying amount of expenses.