Finding Text
FINDING 2021‐004 – Material Weakness and Material Noncompliance – Cash Management
Assistance Listing Number: 21.023
Federal Program Name: COVID-19 Emergency Rental Assistance Program
Award Year: 2021
Criteria: In accordance with the grant award’s general terms and conditions, the Center had agreed to limit the request to draw federal funds on a reimbursement basis and to request funds within 30 calendar days of proper expenditures.
Condition/Context: The Center had approximately $183,000 of refundable advances drawn from the grant (i.e., grant funds) as of June 30, 2021, which had not been expended, and was withdrawn in advance of expenditures.
Cause: Lack of sufficient oversight on cash management requirements may have led to this noncompliance.
Effect: Based upon the grant award’s general terms and conditions, failure to adhere to these requirements may cause termination of the grant, or payments could be withheld.
Questioned Costs: None noted.
Repeat Finding: No
Recommendation: We recommend the Center implement controls, including a supervisory review process over cash management and drawdown processes to ensure compliance with the requirements.
Views of responsible officials and planned corrective actions: Management agrees with the findings and believes the updated month end close process will improve cash management. We will also implement a supervisory review process as part of the monthly close and monthly report to the board.
Timeline: In process to be completed by end of the year.
Contact Person(s):
Konnie Brockway, Finance Director
Bill Davenport, Accountant