Finding 978043 (2023-005)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-06-24

AI Summary

  • Core Issue: The Organization is not following required internal controls for purchase approvals, with 17 out of 40 expenditures lacking necessary documentation.
  • Impacted Requirements: Internal controls over financial reporting are insufficient, leading to non-compliance with approval procedures.
  • Recommended Follow-Up: Develop and implement stronger internal controls, establish clear documentation standards, and provide staff training by August 31, 2024.

Finding Text

Criteria - Internal controls require that the Organization must receive approval for purchases made. Condition - Several invoices and receipts had no noted review or approval for the payment. Out of 40 expenditures examined, 17 were missing approvals. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization maintains documented review and approvals for expenditures. Management’s Response - (a) Comments on the finding and recommendation: Refugee & Immigrant Self-Empowerment, Inc. acknowledges the need for the approval of purchases within the organization. (b) Actions Taken: Refugee & Immigrant Self-Empowerment, Inc. will conduct a thorough review of current expenditure review and approval processes to identify gaps and weaknesses. Clear documentation standards and procedures will be developed, outlining roles, responsibilities, and methods for maintaining expenditure review and approval records. Staff members will receive comprehensive training on these new standards, and compliance will be regularly monitored. (c) Anticipated Completion Date: August 31, 2024

Categories

Procurement, Suspension & Debarment Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
19.510 U.s. Refugee Admissions Program $316,149
93.576 Refugee and Entrant Assistance_discretionary Grants $312,450
10.311 Beginning Farmer and Rancher Development Program $99,644
10.175 Farmers Market and Local Food Promotion Program (b) $90,883
10.225 Community Food Projects $82,461