Finding Text
2023-002: Grant Expense Reconciliation
Material Weakness
Criteria: Internal controls should be in place to provide reasonable assurance that protects iFoster, Inc. from errors or omissions. Condition: iFoster, Inc. internal control system did not require consistent approval of grant expenditures as well as properly allocating costs within the accounting program.
Cause: The internal control system for iFoster, Inc. did not include approvals that were consistent across all costs. In addition, they relied on excel reports for reporting total costs which were not reconciled back to the accounting system.
Effect: Errors or omissions could occur without being identified in the normal course of operations.
Recommendation: We recommend iFoster, Inc. account for all reimbursable expenses in the accounting program which can be specifically identified by grant. All allocated costs should follow uniform guidance standards and be applied consistently among all grants. All costs should be approved in a consistent manner.
Views of Responsible
Officials: iFoster, Inc. agrees with this finding; see corrective action plan.