Window Rock, AZ
United States
Update the DNA Accounting Manual to align with LSC requirements in 45 C.F.R. 1631.12(d) that prohibit giving or selling assets to DNA employees and/or Board members.
Add asset disposal documentation requirements to the DNA Accounting Manual to ensure that documentation is maintained for each disposed asset.
Review the periodic inventory and verify that the inventory reconciles to the general ledger. Document review with a signature and date or initials and date.
Update the current DNA Company Vehicle policy to require logging all use by all employees.
Update the current DNA Company Vehicle policy section on permissible use to:
Provide more detail on what constitutes personal use,
Clearly define commuting to/from work as personal use, and
Inform employees that the value associated with personal use…
Work with DNA's Board of Directors to eliminate the Executive Director's ability to make discretionary changes to the current DNA Company Vehicle policy.
Work with DNA's Board of Directors to update the DNA Accounting Manual to require Board of Director approval for all DNA policy changes.
Update the company vehicle policy with a requirement that vehicle users maintain complete vehicle use logs, including date, time, and purpose of the trip.
Update the Company Vehicle Use policy to:
Require documentation of monthly vehicle use log review, and
Document the review to include the signature of the reviewer and the date of review.
Update the DNA Accounting Manual to include all LSC cost allocation requirements, including cost allocation documentation requirements.
Update the cost allocation section of the DNA Accounting Manual to include and comply with all LSC requirements. The updates should include:
A list of the supporting documentation to be retained for cost allocations; and
A requirement that cost…
Along with the DNA Board of Directors decide whether DNA will allocate costs monthly or quarterly and update their Accounting Manual accordingly to include the timeframe within which the cost allocation must be completed.
Work with the Board President to enhance or implement procedures to ensure that the Board President reviews, approves, and adequately documents their approval of the Executive Director's credit card expenditures with a signature and date.
Implement controls to ensure that entries for transactions are adequately referenced in the general ledger, and source documents are traceable to the general ledger. Grant codes should be coded in the accounting system and included with supporting…
Implement a process to ensure that only LSC-allowable expenses are allocated to LSC, in accordance with LSC requirements and guidance.
Update the DNA Accounting Manual to include procedures for obtaining LSC approvals when using more than $25,000 of LSC funds for contracts, purchases/leases of personal property, or capital improvements.
Implement procurement documentation procedures ensuring that required documents - including but not limited to: request for approvals, competitive bids and quotes, sole source justifications, and documentation of any deviation from the procurement…
Update the DNA Accounting Manual to require that contract documents must be maintained in a central file according to the record retention policy post expired contract terms.
Establish and maintain a proper recordkeeping system that enables DNA to maintain contract files and perform regular backups of electronic records and systems stored offsite or in a virtual environment with easy-to-use restoration options.
Implement procedures to ensure that invoices are itemized according to the terms of the contract before payment is disbursed.
DNA should be able to verify the total amount that is billed for services and confirm the deliverables received.
Additionally…
Obtain information from the accounting services contractor and conduct a review to determine if they were billed for reconciliation support services that they did not receive during the audit period and recoup any such expenses.
Implement procedures to ensure adequacy of allocations and general ledger classifications.
Implement procedures for adequate review of case timekeeping to ensure the proper allocation of attorney fees.
Update the DNA Accounting Manual to include a section on costs that are unallowable per LSC regulations, including how to identify and address unallowable costs.
Provide training on identifying and recording unallowable costs to DNA accounting staff and any other personnel responsible for approving purchases or disbursements.
Update the DNA Accounting Manual to assign bank reconciliation duties ensuring segregation of duties so employees who initiate or transmit electronic transactions, have no access to cash, are not check signers, and have no bookkeeping duties.
Establish adequate segregation of duties to:
Ensure cash receipts procedures require that two employees open the mail, and
Ensure the cash receipts log is signed and dated by the preparer and the reviewer.
Establish adequate segregation of duties to ensure employees who take deposits to the bank:
Are not involved with opening the mail or recording cash receipts, and
Do not have access to the DNA Accounting System.
Implement procedures to ensure that bank reconciliations are signed and dated on the date the reconciliation was performed and the bank reconciliation review was performed and documented.
Ensure that outstanding checks are investigated and resolved within 90 days, according to the grantee policy.
Discuss with the DNA Board of Directors whether DNA should maintain petty cash funds or implement a Purchase Card to replace petty cash funds.
If DNA continues using petty cash funds:
Update the DNA Accounting Manual to comply with the requirements in Section 3.2.5 of the LSC Financial Guide,
Correct its general ledger to show the accurate petty cash fund balance by office,
Eliminate the…
Update the DNA Accounting Manual and Employee Manual, as required, to include:
A policy prohibiting checks made payable to cash.
A local travel policy with the elements required by the LSC Financial Guide.
The LSC Financial Guide requirements for…
Implement controls to ensure that entries for transactions are adequately referenced in the general ledger, and source documents are traceable to the general ledger. Grant codes should be coded in the accounting system and included with supporting…
Strengthen procedures over management reporting and budgeting to ensure that:
Procedures are implemented to prepare monthly management reports for management/director review by the required due date.
The required LSC reports are prepared, including…
Update the DNA Accounting Manual to include a Statement of Cash on Hand as a required monthly report.
Implement procedures to ensure that budgets are prepared and approved by the Board prior to the start of each fiscal year. Also, ensure that there is documentation of Board approval.
Ensure the budget is fully documented by location, funding source and program, as stipulated in the DNA Accounting Manual.
Implement procedures to ensure that an individual independent of the preparation or distribution of payroll, reviews payroll prior to processing. Additionally, ensure that this review is documented by signature and date.
Strengthen procedures to ensure that client trust bank reconciliations and associated individual client trust ledgers are reconciled monthly and in a timely manner.