Finding Text
Finding 2023-002, Cash Disbursement Process
Information on the Federal Program - Assistance Listing Number 93.224 Health Care Center Program (Direct Health Center Program Cluster). Compliance Requirements: Activities Allowed or Unallowed. Type of Finding: Significant Deficiency in internal control over financial reporting and internal controls over Federal major programs Criteria - Based on documented internal controls, the Organization should be able to provide support for cash disbursements with management's approval.
Condition - In 3 instances out of 25 items tested, invoices were not approved by management. In one instance, the supporting invoice was not able to be located.
Cause - Discussions with Organization employees indicate the cause of missing documentation and approvals was due to lack of oversight.
Effect - The missing support and missing approvals could result in improper nonpayroll expenditures.
Questioned Costs - Zero
Recommendation - We recommend the Organization follow the documented cash disbursement process and ensure reviews and approvals are documented.