Opportunity Alabama Inc.Non-Profit

2024-002 – Lack of Documentation - Significant Deficiency Criteria: The Office of Management and Budget (OMB) Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), requires Opportunity Alabama, Inc. to adequately document the approval of payments. Condition: During the audit, we noted that 12 of 40 transactions selected for cash disbursement testing lacked proof of approval for reimbursement. Cause: The Organization’s procedures related to the approval process were not adequate to properly authorize transactions. Effect: We were unable to determine if proper review had occurred for the transactions in question. Recommendation: We recommend that the form or process that was developed to ensure that disbursements are approved for reimbursement be strictly adhered to by all employees. This will ensure that funds are used for appropriate purposes and in accordance with grant provisions. View of Responsible Officials: Management agrees with the finding. See Corrective Action Plan at the end of the report.

Finding 2022-001 Lack of Approval Process for Disbursements Criteria: The Organization?s management is responsible for proper internal control over financial reporting, including proper approval for payments. Condition: During the audit, we noted that thirteen of twenty-five transactions selected for cash disbursement testing lacked proof of approval for payment. Cause: The Organization?s procedures related to the approval process were not adequate to properly authorize transactions. Effect: As a result, BMSS was therefore unable to determine if authorization had occurred for the transaction in question. Recommendation: We recommend that a form or process be developed to ensure that disbursements are approved for payment. This will ensure that funds are used for appropriate purposes accordance with grant provisions.

Finding 2022-002 Timely Submittal of Reimbursement Reports and Cutoff Criteria: The Organization?s management is responsible for proper internal control over financial reporting, including timely submittal of reimbursement reports and cutoff. Condition: During the audit, we noted one grant reimbursement report was submitted five months after the reimbursement period ended. Effect: The expenses associated with this reimbursement were not appropriately considered for year-end cutoff resulting in a prior period adjustment. Recommendation: We recommend reimbursement reports be submitted in a timely manner and that a record be maintained of all open reimbursement periods.

Finding 2022-003 Lack of Controls over Vendor Master File Criteria: The Organization?s management is responsible for proper internal control over financial reporting, including having controls over the vendor master file. Condition: During the audit, we noted that there are no controls or oversight of the vendor master file. Effect: No controls over the vendor master file could allow for misstatements that would not be detected or corrected on a timely basis. Recommendation: We recommend a policy be developed to ensure that any changes to the vendor master file are approved by another employee of the Organization.