Congressional Award Foundation:
Management Action Still Needed to Establish and Document Control Requirements and Related Procedures
AIMD-00-266R: Published: Jul 28, 2000. Publicly Released: Jul 28, 2000.
- Full Report:
Pursuant to a legislative requirement, GAO reviewed the Congressional Award Foundation's efforts to address internal controls weaknesses identified in GAO's 1999 financial audit.
GAO noted that: (1) the Foundation had made progress at the organization and system levels in addressing internal control weaknesses; (2) specifically, during fiscal year 1999, the Foundation hired a new employee to help draft control objectives and procedures; (3) also, the Foundation began implementing a new accounting system, which among other things has the capability to flag duplicate facsimile invoices, one area of control weakness previously reported; (4) however, Foundation management has not yet established and documented internal control requirements and related procedures as previously suggested for management and staff to follow: (a) in the preparation and approval of financial statements and related adjustments; (b) in following up on reconciliations; and (c) to compensate for inadequate separation of duties inherent in small organizations, like the Foundation; (5) also, Foundation management has not yet documented, as previously suggested, established internal control requirements and procedures it follows in managing receivables and monitoring restricted contributions, and in controlling facsimile invoices; and (6) without established and documented control requirements and related procedures, the Foundation faces the continuing risk that its processing of transactions and preparation of financial reports may not be consistently performed, monitored, and controlled.