Finding 976426 (2023-005)

Condition: During our audit, we found that the Agency’s Board did not review and approve material disbursements charged to the federal program. Criteria: The Agency’s policy states that the Board’s review and approval are required for the transactions over $1,000 charged to the federal program. Cause: Internal controls over material disbursements charged to the federal program were not properly implemented or operating effectively. Effect: Internal controls are not functioning effectively, which increases the risk of error and fraud. Recommendation: We recommend the Agency develop a written policies and procedures manual which should include a checklist detailing all the necessary steps to ensure a proper review of all costs charged to the federal program.