Finding Text
Material Weakness in Internal Controls over Compliance for Allowability and CashManagement
Identification data: U.S. Department of Health and Human Services – Family Violence Prevention and Services/State Domestic Violence Coalitions, Assistance Listing No. 93.591, Agreement Identifying No. 2201NEFSC6, No. 2301NESDVC, No. 2101NESDC6, and No. 2101NESTC6.
Criteria: SAS 115 requires communication, in writing, to management and those charge with governance, of material weaknesses identified in an audit.
Condition: For 11 of 30 transactions selected for testing, the Coalition was unable to provide support for the approval of the transaction that was identified as a key control in the Coalition’s policies.
Cause: A breakdown in the Coalition’s internal controls over allowability and cash management caused the Coalition to be unable to provide support for the selected transactions.
Effect or Potential Effect: The control deficiency is a material weakness that results in a reasonable possibility that a material misstatement of the financial statement will not be prevented, or detected and corrected, on a timely basis.
Identification of a Repeat Finding: New finding.
Recommendation: The Coalition should review its internal control over allowability and cash management and implement changes in order to comply with the required internal control standards.
Views of Responsible Officials: Timesheets are approved by directors and approvals are tracked by the Fiscal Manager on an ongoing spreadsheet. Any missing approvals are requested. In addition, a Payroll Review Report has been developed and presented to and approved by the Executive Director at the issuance of each payroll.