Finding 2023-001: Inadequate Controls over Cash Management
Condition
During the audit, management disclosed that $179,155 in federal funding had been overdrawn.
The excess cash on hand was not returned to the funding source in a timely manner.
Correction action
At the time the condition occurred in ...
Finding 2023-001: Inadequate Controls over Cash Management
Condition
During the audit, management disclosed that $179,155 in federal funding had been overdrawn.
The excess cash on hand was not returned to the funding source in a timely manner.
Correction action
At the time the condition occurred in August 2022, one person was preparing and submitting the
cash draw requests and they were done manually. In September 2022, management changed
the process to require the cash draw requests be calculated electronically and all draws must be
reviewed by a second party prior to submission. Drawdowns are done in arrears and tied to
invoices already paid to avoid the risk of overdrawing funds. Monthly reconciliations are
completed to verify no funds were overdrawn. If any funds were found to be overdrawn, they
would be addressed timely with the granting agency or subtracted from the subsequent
drawdown. At the time the overdraw was discovered was a time of transition in the executive
director role and the steps to return the funds promptly were not completed. We are in the
process of working with the agency to remedy this and return the overdrawn funds.
Responsible Person
Michael Jones, Secretary/Treasurer, Whitney Alexander, Interim Executive Director, Jaclyn
Simon, Financial Controller
Anticipated completion date
The corrective action plan was put in place immediately in September 2022