APPETITE FOR CHANGE, INC.Non-Profit

2020 ? 004 Internal Controls Federal agency: Department of Treasury Federal program title: Coronavirus Relief Fund CFDA Number: 21.019 Award Period: July 1, 2020 ? December 30, 2020 Type of Finding: -Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: During our testing of allowable costs and period of performance, we noted there was a lack of proper internal control processes in place. For general disbursements, there was no evidence of review of expenditures. Questioned Costs: None Context: During our testing for allowable costs, we noted 21 out of 21 disbursements tested did not include a documented review. During our testing of period of performance, we noted 13 out of 22 disbursements did not include a documented review. Cause: The Organization does not have a strong internal control structure that includes documented review processes. Effect: Without proper internal controls, unallowable expenditures could be charged to the grants. Repeat Finding: None Recommendation: We recommend the Organization implement a documented review process for all expenditures. Review should be completed by a person who is not requesting and should be documented appropriately. Views of Responsible Officials: There is no disagreement with the audit finding.