2022 003 - Internal Controls over Cash Draws Material Weakness Federal Program WIOA Covid 19 Employment Recovery - Assistance Listing Number 17.277 Auditor's Notes An effective system of internal controls over compliance is required to ensure that grants are being administered properly. This include...
2022 003 - Internal Controls over Cash Draws Material Weakness Federal Program WIOA Covid 19 Employment Recovery - Assistance Listing Number 17.277 Auditor's Notes An effective system of internal controls over compliance is required to ensure that grants are being administered properly. This includes a system to ensure that invoices for each program are being reimbursed by the correct granting agency and for the correct grant. During the FY 2021 audit, we noted instances where invoices that were reimbursed by a program were subsequently moved to another fund due to a correction of an error. When this occurs, the expense is moved to the other fund, and cash is reimbursed to the initial fund, however, the funds that were drawn down in error are not being remitted back to the granting agency. Rather, the excess funds are held and applied to subsequent invoices that are to be reimbursed by that program, reducing the reimbursements by the amounts of excess cash held. Given that the FY 2021 audit was not issued until late September 202 , this was a known issue during FY 2022 and will remain a finding in the current year. Management's Response San Diego Workforce Partnership conducts a thorough review of invoices and will monitor reclasses to ensure they are being placed in the appropriate funds and not resulting in any excess funding. Once identified, we will assess the balance, report to the proper authorities and remit as required. This is in effect as of Sept 30, 2022. The Controller and VP of Finance will be responsible in ensuring this system is followed.