Finding 1079733 (2023-003)

Finding 2023-003 Controls: Internal Controls over Cash Management Assistance Listing Numbers and Title: 93.566 Refugee and Entrant Assistance State/Replacement Designee Administered Programs Federal Agency: U.S. Department of Health and Human Services Pass through Entity: Oklahoma Department of Human Services Pass through Entity Award Number: 8309026721 Finding type: Significant Deficiency Criteria: Section 2 CFR200.303(a) requires non-Federal entities to establish and maintain effective internal controls over compliance with Federal laws, regulations, and the terms and conditions of Federal awards. Management is responsible for implementing internal controls to ensure that proper segregation of duties exist over cash management process. 2 CFR 200.305, Federal Payments, requires non-Federal entities to requst funds in accordance with program terms. Condition: During the course of audit, we noted that not all submissions for request for reimbursement were reviewed by someone other than the preparer prior to submission. Cause: This award was new to CCEOK in 2023 and administrative assignments were not established immediately. CCEOK later performed a retrospective review as a part of year end closing procedures to ensure that reimbursement requests were corrected and properly stated. Effect: CCEOK’s interrnal controls do not ensure proper review of reimbursement request and has potential to lead to improper reimbursement. Questioned cost: None. Recommendation: We recommend CCEOK implement procedures that all contract reimbursements be reviewed by someone independent from the preparer prior to submission.