Aspermont Small Business Development Corporation

Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that helps ensure transactions are recorded timely, correctly, and in the proper reporting period, thereby providing accurate financial data. Condition: The Organization has policies and procedures in place for the review and approval of federal expenditures, however there was no documentation of their internal control system over federal award expenditures. Effect: There was no way to test the internal control system over federal award expenditures to be able to assess control risk at low. Cause: Controls were unable to be tested as there is no documentation of those controls in place. Recommendation: We recommend that finance personnel show documentation of their review and approval of invoices charged to grants. The organization should also document the review and approval of timesheets and salary changes for all salaries charged to grants.