Finding Text
Finding 2023-003 – Significant Deficiency over Internal Controls Related to Cash Management Compliance - Human Genome Research - Enzyme Synthesis of RNA – 93.172
Criteria: The Foundation is responsible for establishing and properly implementing controls over compliance with the grant requirements regarding cash management to ensure that reimbursement requests and related draws are made for allocable, allowable and reasonable costs that have already been incurred or paid.
Condition: During the audit, we noted insufficient evidence of the performance of controls related to the timing of draws in relation to the costs incurred to date.
Cause: The former grant administrator was responsible for all aspects of grant management, without review by another member of management.
Effect: The Foundation was not able to ensure that internal controls were implemented or operating effectively.
Recommendation: The Foundation should strengthen its controls related to the cash draw processes to ensure that grant funding only be submitted for reimbursement and cash draws once an expenditure has been made, regardless of anticipated expenditures.
Management’s Response: We agree with the finding and will implement procedures to ensure internal controls over grant funding draws is based on allocable, allowable expenditures incurred to date.