Anewentry, Inc.

Criteria: Management is responsible for establishing and maintaining internal controls over financial reporting and compliance with requirements of its grant agreements. Condition: There was a lack of separation of duties during the audit period. Perspective Information: All accounting and management functions were subject to this lack of separation of duties. Cause and effect: Family-related persons were in charge of management and accounting functions. This could result in management override and potential collusion. Recommendation: Management should establish adequate separation of duties and oversight. Views of responsible officials: See attached.

Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Condition: 10 of 72 sampled expense items did not have sufficient supporting documentation. Perspective Information: Supporting documentation for 14% of sampled expense items representing 6% of the sampled dollar amount was not available. Cause and effect: Invoices and receipts were not maintained for expenses. This could result in unallowable and personal expenses to be paid by the organization. Recommendation: Management should retain supporting documentation for all expenses paid by the organization.