Laserfiche WebLink
G.R.O .W., Inc. <br /> Schedule of Findings and Questioned Costs (continued) <br /> B . Findings and Questioned Costs — Major Federal Financial Assistance Project <br /> Workforce Development Board : <br /> Department of Labor — Workforce Investment Act <br /> CFDA No. 17.259 <br /> Contract No. 00-007-OSY- GROW <br /> Grant period - April 1 , 2001 thru June 30, 2002 <br /> 02- 1 Segregation of Duties <br /> Reportable Condition: Due to the limited number of people working in the office, many critical <br /> duties are combined. Presently, a single individual approves all requests for reimbursement from <br /> grantor, approves all invoices for payment, signs all checks singlely, and supervises all other <br /> office personnel. This condition is deemed to be a material weakness . <br /> Criteria: Proper internal control procedures require segregation of duties , or other <br /> procedures to be in place to mitigate overlapping functions . <br /> Effect: Proper control and oversight of the cash receipts and disbursements functions was <br /> compromised. <br /> Recommendation: The size of Grow ' s accounting and administrative staff precludes <br /> certain internal controls that would be preferred if the office staff were large enough to <br /> provide optimum segregation of duties . This situation dictates that the Board of <br /> Directors become more involved in the financial affairs of Grow to provide oversight and <br /> independent review of functions . <br /> Management Response : The Board of Directors , have become more involved in the <br /> financial oversight of the organization. The following procedures have been <br /> implemented to ensure segregation of duties : <br /> • A Board Member will assist in the budget planning function and the reviewing <br /> of financial and bank statements . <br /> • A Board Member will review invoices and check requests for payments . <br /> • A second signature will be required on all checks being distributed from all <br /> GROW Accounts . <br /> • Prior approval is required on purchases of $ 1 ,000 or more that is not an approved <br /> budget item. <br /> • Prior approval must be given for all loan and/or credit requests . <br /> 02-2 Period of Availability / Grant Reimbursement Requests <br /> Reportable Condition: Various expenditures were made at June 30, 2002, for which goods and/or <br /> services would not be rendered until future periods . These items mainly represented prepaid <br /> advertising, rent, copier leases, and audit fees . In addition, disbursement checks were prepared, <br /> signed and held, based solely on the placement of purchase orders for future items delivered <br /> - 16- <br />