Finding Text
Condition: The CFO’s reporting of major program costs through the State of Arizona’s grant management system (eCivis) was not reviewed by a second individual. In addition, there was no independent review of the payroll registers selected during major program testing.
Criteria: To better segregate duties, payroll and other costs charged to the major program should be reviewed and approved by a second individual.
Cause and effect: The internal controls of the Foundation were not functioning as designed, resulting in an increased risk of fraud and error. There was an accumulated variance of $7,947 between costs reported through e-Civis and the accounting system.
Recommendation: To better segregate duties, I recommend that governmental grant reports and the payroll registers be reviewed by the CEO or other key employee.
Views of Responsible Officials: The Foundation will have the staffed CEO review and sign off on all reports and payroll registers in general with a specific focus on those tied to government grants.