During GAO's fiscal year 2001 audit on accounting procedures and internal controls at the Congressional Award Foundation it found several internal control weaknesses related to processing transactions, maintaining supporting documents, and required reporting. Specifically, GAO found lack of approval for payments to vendors, inaccurate classification of transactions in the general ledger, lack of supporting documents for adjusting journal entries made by the foundation's accounting firm, incomplete personnel files, and lack of congressional reports for fiscal year 2000. The leadership of the Congressional Award Foundation changed near the end of the fiscal year 2001, and this transition may have contributed to the weaknesses found during GAO's audit. Since this transition, the foundation has established the executive position of the Director of Finance and Administration to oversee daily financial and administrative operations.
Recommendations for Executive Action
|Congressional Award Foundation||The Director of Finance and Administration should implement the use of the check request form and require that requests for payments are clearly documented on this form.|
|Congressional Award Foundation||The Director of Finance and Administration should arrange for training in relevant accounting procedures for staff responsible for the posting of transactions in the general ledger and provide supervision of staff to ensure that transactions are posted correctly.|
|Congressional Award Foundation||The Director of Finance and Administration should adjust policies governing the work of the foundation's accounting firm to provide for the firm to maintain on site all documentation necessary to support the foundation's financial results.|
|Congressional Award Foundation||The Director of Finance and Administration should provide continuing oversight of the maintenance of personnel files to ensure that information in personnel files is current and correct.|