Finding Text
Type: Significant deficiency in internal control over compliance.
Criteria: Agency policy requires documentation to be maintained for payments made and certain approvals to occur for payments
Condition: The Agency could not locate one of the 40 invoices selected for testing, and disbursement registers did not have approval for the months of July through September.
Context: Certain payments did not have adequate controls to ensure maintenance of invoices or approval of payments.
Cause: The Agency has misplaced one of the 40 invoices, but all others selected were located. The registers did not have documentation of approval, as there were significant changes in management and staff during the year, and this process was missed in the transition of staff.
Effect: Expenditures could have been paid that were not approved by management or the board.
Recommendation: We recommend management review the process of approvals and maintenance of invoices to ensure payments made are proper and documentation of approvals are maintained.
View of responsible officials and planned corrective action: Management agrees with the finding. See corrective action plan.