Audit 299487

Finding 2023-001: Inadequate Controls over Cash Management Compliance Requirement: Cash Management Type: Material Noncompliance and Material Weakness over Internal Control Federal Agency: Department of Health and Human Services AL Numbers and Titles: 93.860 – Emerging Infections Sentinel Networks Federal Award Number: NU50CK000478 Questioned Costs: $179,155 Repeat Finding: No Criteria: The Society requests funds from the U.S. Department of Health and Human Services under the reimbursement payment method. Draw down requests should be timed to ensure that Federal cash on hand is the minimum needed for disbursements/reimbursements to be made immediately or within 10 days. If not spent or disbursed within 10 days, funds must be returned to the awarding agency. Condition: Management disclosed to us that they overdrew $179,155 in federal funding during the year. The excess cash on hand was not returned to the funding source in a timely manner. Cause: There was only one person preparing and submitting the cash draw requests. There was no secondary review process in place. Effect: The Society was not in compliance with federal regulations concerning disbursement of federal funds and excess cash. In addition, a lack of independent review of cash draw requests could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Recommendation: We recommend that management ensure a documented independent review and approval is completed prior to submission of the cash draw request. We also recommend that potential excess cash balances are reviewed frequently. Views of Responsible Officials Corrective Actions: Management agrees with this finding. Please refer to the Corrective Action Plan.

Finding 2023-001: Inadequate Controls over Cash Management Compliance Requirement: Cash Management Type: Material Noncompliance and Material Weakness over Internal Control Federal Agency: Department of Health and Human Services AL Numbers and Titles: 93.860 – Emerging Infections Sentinel Networks Federal Award Number: NU50CK000478 Questioned Costs: $179,155 Repeat Finding: No Criteria: The Society requests funds from the U.S. Department of Health and Human Services under the reimbursement payment method. Draw down requests should be timed to ensure that Federal cash on hand is the minimum needed for disbursements/reimbursements to be made immediately or within 10 days. If not spent or disbursed within 10 days, funds must be returned to the awarding agency. Condition: Management disclosed to us that they overdrew $179,155 in federal funding during the year. The excess cash on hand was not returned to the funding source in a timely manner. Cause: There was only one person preparing and submitting the cash draw requests. There was no secondary review process in place. Effect: The Society was not in compliance with federal regulations concerning disbursement of federal funds and excess cash. In addition, a lack of independent review of cash draw requests could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Recommendation: We recommend that management ensure a documented independent review and approval is completed prior to submission of the cash draw request. We also recommend that potential excess cash balances are reviewed frequently. Views of Responsible Officials Corrective Actions: Management agrees with this finding. Please refer to the Corrective Action Plan.