Finding Text
FINDING 2023-004 - Block Grants for Prevention and Treatment of Substance Abuse - Assistance Listing No. 93.959; Grant Period - For the year ended June 30, 2023
Condition: The internal controls over the check signing process were not operating as designed. As a result, we were unable to review dual signature on certain checks written over $10,000 claimed as part of the Block Grants for Prevention and Treatment of Substance Abuse.
Criteria: The Organization's policy is to have dual signatures on any checks written over $10,000. Proper functioning internal controls would result in the Organization having dual signatures on all required checks.
Cause: Of the 40 expenses selected for testing, 4 of the payments selected required dual signature based on the Organization's policy. The system of controls over the Block Grants for Prevention and Treatment of Substance Abuse did not operate properly to allow for the Organization to provide for the required dual signature on 2 of 4 items requiring dual signature that were selected for testing as part of the allowable cost testwork performed.
Effect: The Organization did not obtain proper dual signature on certain checks over $10,000.
Recommendation: The Organization's internal control system over the check signing process should be consistently followed for all checks that apply.
Views of Responsible Officials and Planned Corrective Actions: The Organization has established a list of authorized signers for checks drawn on its bank accounts. Checks shall be reviewed prior to mailing to ensure dual signatures are present on checks over $10,000.