PLACE, THENon-Profit

Criteria or specific requirement ? Management is responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? Evidence of the approval of certain credit card transactions was not maintained by management. Context ? For 6 out of 60 tested transactions, evidence of the approval of expenses as relates to credit card transactions was not able to be provided. Cause ? Evidence of approval was not maintained due to staffing turnover, where expected documentation was possibly held in prior staff email inboxes during their time at The Place. Effect ? The inability to maintain internal controls for some transactions may have resulted in undetected noncompliance. Recommendation ? We encourage The Place to implement new procedures in which each employee with a card is reminded every 24 hours after a transaction to submit coding as well as a receipt. We encourage The Place to maintain evidence of manager and accounting generalist approval of credit card transactions prior to submittal to the third-party accountant. We also recommend that The Place set a budget on funding for the credit cards and for the Executive Director to review transactions on a regular basis. Views of responsible officials and planned corrective actions ? The Place understands and agrees with the finding. A new credit card platform was put into place that assigns budget levels, controls expenditure type per card carrier, and reminds each employee every 24 hours until completed to submit coding as well as receipt. Additionally, credit card transactions are reviewed by the Executive Director on a regular basis.