Finding Text
2023-006 Negative Operating Cash
Criteria: Management is responsible for implementing adequate controls to spend restricted funds. Management is responsible for implementing adequate controls to ensure proper cash to meet operating needs.
Condition: Insufficient controls over restricted contributions and grants.
Cause: Lack of controls. No process in place to track restricted fund spending.
Effect: Could result in misused funds.
Questioned Costs: None noted.
Recommendation: Improve internal controls over restricted contributions and grants. Implement a system to track revenue and expenses for restricted funds. Request additional funding for general operations.
Views of Responsible Officials and Planned Corrective Actions:
Management has enhanced internal controls over restricted contributions and grants with a system to track revenue and expenses for restricted funds. Inspiration has already hired a compliance administrator with the responsibility of tracking all local, state, and federal grant revenues and expenditures. Inspiration has implemented strategies to increase operating and unrestricted funds through 2024 and 2025 such as but not limited to targeting personal monthly Impact Partners and local Kingdom Church Partners. Inspiration has MOUs in place with local manufactures to implement a workforce pipeline to increase revenue for operations. Inspiration has made a considerable effort to improve cash flow and trim expenses to finish fiscal year 2024 with positive operating cash.