Finding Text
Condition – We were unable to trace amounts reported on the Federal Financial Report to the accounting records.
Criteria –Reports for Federal awards should include all activity of the reporting period, should be supported by applicable accounting or performance records, and be fairly presented in accordance with governing requirements.
Cause – Turnover in the top accounting position, Director of Finance combined with a physical relocation resulting in a temporary inability to locate some documents.
Effect – We were unable to verify the accuracy and completeness of the Federal Financial Report.
Recommendation – We recommend that procedures be implemented to ensure that all Federal reports are supported by accounting records that support the audited financial statements and Schedule of Expenditures of Federal Awards.
Views of Responsible Officials and Planned Corrective Actions – The leadership at IHR takes this finding very seriously and to ensure more accurate record keeping, has hired additional support with the skills necessary for maintaining a more comprehensive and accessible electronic record keeping system. This will also be accomplished by enforcing IHR’s existing procedures of authorizing, scanning, and properly coding documents by Accounts Payable.