Prevention Point Philadelphia, Inc.

Finding 2019-1 Missing proper authorization for expenditures Type of Finding: Significant Deficiency Questioned Costs: None Condition and Criteria During our cash disbursements testing for the year ended June 30, 2019, it was noted there were multiple instances of no approvals noted on voucher forms or on the invoices for expenditures. Effect Unauthorized purchases can result in misuse of funds or payment of expenses not in budget. Cause Ineffective enforcement of current disbursements policy. Recommendation The Organization has policies in place to use voucher forms for the debit card and manual checking accounts with a section for notation of approval on the forms. We recommend this policy be monitored more effectively. Management?s Response and Corrective Action Plan Currently, management monitors transactions on a bi-weekly basis. Management sends out reminders weekly. Management is evaluating a policy to discipline those individuals who do not follow the procedure which would include removing their authorization to expend the Organization?s cash. Current Status During our cash testing for the year ended June 30, 2020, we noted multiple instances of missing approvals for expenditures.

Finding 2019-1 Missing proper authorization for expenditures Type of Finding: Significant Deficiency Questioned Costs: None Condition and Criteria During our cash disbursements testing for the year ended June 30, 2019, it was noted there were multiple instances of no approvals noted on voucher forms or on the invoices for expenditures. Effect Unauthorized purchases can result in misuse of funds or payment of expenses not in budget. Cause Ineffective enforcement of current disbursements policy. Recommendation The Organization has policies in place to use voucher forms for the debit card and manual checking accounts with a section for notation of approval on the forms. We recommend this policy be monitored more effectively. Management?s Response and Corrective Action Plan Currently, management monitors transactions on a bi-weekly basis. Management sends out reminders weekly. Management is evaluating a policy to discipline those individuals who do not follow the procedure which would include removing their authorization to expend the Organization?s cash. SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None

Finding 2017-1 Debit card voucher policy not being enforced Type of Finding: Significant Deficiency Questioned Costs: None Condition and Criteria For the year ended June 30, 2017 we randomly selected transactions from the debit card account during our test of transactions. It was noted there was no supporting documentation available and there was a lack of consistency of enforcement of the Organization?s debit card voucher policy. Effect Without employee purchases being monitored, there is a risk of misappropriation of assets and fraud. Cause A finance director who suffered a personal crisis was not actively able to monitor staff and enforce financial policies for a majority of the year ended June 30, 2017. Recommendation Management is currently working to enforce a new debit card policy to put in place for the year ended June 30, 2018. This policy should include collection of receipts, review of purchase, and be approved by management. If there is no policy being enforced, then there is a risk of fraud and misappropriation of assets. Management?s Response and Corrective Action Plan Effective during the year ended June 30, 2018, management began enforcing a debit card voucher submission policy. Currently, management is enforcing that all debit card receipts be attached to a voucher detailing all aspects of the purchase. All debit card users must attach receipts to the voucher and detail the proper general ledger account and department that the expense should be charged to. The voucher must be signed by the purchaser and the Executive Director before being forwarded for entry into the accounting system. Current Status During our test of debit card payments during the year ended June 30, 2019, we still found multiple instances of management not being able to provide supporting documentation for debit card purchases. However, we did note during our testing of available supporting documentation there has been a policy put in place but hasn?t been consistently applied and monitored. Management is currently establishing procedures to revoke the cards and purchasing authorizations of those who are not in compliance with the policy. SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None