Audit 371664

inding 2025-003: Capital Fund Grant Cash Management Capital Funds – 14.872 Material Weakness/Noncompliance – Cash Management Repeat Finding 2024-004 Criteria: The Agency is not allowed to pay for capital fund transactions until funds are vouchered and disbursed from LOCCS. Further, the funds must then be disbursed within 3 business days (3-day Treasury Rule) of the funds being deposited into the Agency’s bank account from LOCCS. Condition: They Agency had $76,172 of capital fund expenses during the year of which $37,232 were used for operations. Of the remaining $38,940 of expense, we tested $34,682 which consisted of 5 checks. We noted none where the funds were advanced and expended in accordance with the rules above. The Agency reported in the Summary Schedule of Prior Audit Findings that these items were corrected which was not correct. Cause: The Agency had adequate balances in its checking account where it was able to pay for the items without advancing the funds. Further, the responsibility for advancing the funds was the responsibility of one individual without proper oversight and due to time constraints, advancing funds in LOCCS was not prioritized. Effect or Potential Effect: The Agency did not comply with the cash management requirements. Recommendation: The Agency should establish procedures where capital funds are advanced when expenditures are to be made. The Agency should establish a system where the Executive Director can monitor the advances and related expenditure of the grant funds are occurring within the required timeframe. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.