Finding Text
Finding 2023-005: Cash Management and Reporting (Significant Deficiency)
Information on the Federal Programs: Both Major Programs
Criteria or Specific Requirement: 2 CFR Section 200.303 requires auditees to establish and
maintain effective internal control over Federal awards that provides reasonable assurance that the
non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations,
and the terms and conditions of the Federal award. These internal controls should be in compliance
with guidance in “Standards for Internal Control in the Federal Government” issued by the
Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by
the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition: FCE did not maintain documentary evidence of the review and approval of either its
requests for cash draw downs or its performance reports in accordance with the internal control
requirements for the first three quarters in 2023. However, internal controls were implemented during
the fourth quarter of 2023 and no issues were noted with approvals in the fourth quarter. In addition,
the requests for cash draw downs were not submitted in a timely manner during the year ended
December 31, 2023.
Cause: Until the fourth quarter of 2023, the review and approval was performed verbally and was
not documented. As a result, FCE was not able to provide adequate support to document the review
and approval of either its requests for cash draw downs or its performance reports for the first three
quarters of 2023. In addition, as FCE was experiencing transition in the finance team, the requests
for cash draw downs were not submitted in a timely manner.
Effect or Potential Effect: FCE was not able to provide evidence of the implementation of internal
controls related to review and approval for cash draw downs and performance reports for the first
three quarters of 2023 and FCE did not timely submit its requests for cash draw downs.
Questioned Costs: None.
Repeat Finding: See Finding 2022-005.
Recommendation: FCE should retain documentary evidence of its review and approval process,
which should occur prior to submission of the requests for cash draw downs and performance
reports. FCE should endeavor to timely submit its requests for cash draw downs.