Audit 392159

Finding 2025-001 – Significant Deficiency in Internal Controls over Cash Management. Identification of Federal Program: AL #17.274, YouthBuild Condition – It was noted during the audit that there was not a documented review of the cash draws for the program tested. Criteria – Internal controls should be designed to include a documented supervisory review of cash draw requests to ensure accuracy, proper authorization, and compliance with program requirements and the Code of Federal Regulations 200.303. Context and Cause – The Organization is aware of their Policy for a documented review, but due to organizational turnover, the control was not performed during the time period that was tested. Effect of Condition – Without a documented review, the Organization cannot demonstrate that cash draws were reviewed for accuracy, timeliness, and compliance with federal cash management requirements. This increases the risk of: • Drawing funds prematurely • Errors in draw amounts going undetected • Noncompliance with federal cash management regulations These issues could result in questioned costs or repayment of funds. Questioned Cost – None. Recommendation – We recommend the Organization re-implement the procedure noted in the prior year, where a supervisor’s initials and date of review was documented on the support for each cash draw prior to draw down of federal funds. Views of Responsible Officials and Planned Corrective Actions – Management concurs with the finding and has developed a corrective action plan. We understand that a significant deficiency is identified in internal controls over cash management. The deficiency is an internal control finding and not a compliance finding. The finding does not impact the Organization’s ability to manage federal funds.