Finding Text
Finding 2024-001 – Cash Management (Material Weakness)
Information on the Federal Program: U.S. Department of Education, Trio Cluster
Criteria: 2 CFR 200.305 establishes the procedures for receiving federal payments. Non-federal entities must design and implement internal controls to ensure compliance with cash management requirements.
Condition: We selected a sample of 24 reimbursement draw downs made during the year through the G5 payment system. Procedures were in place to accumulate expenses based on approved invoices and draw the reimbursement amount down through G5, however, documentation of review and approval of amounts to be drawn was not available.
Cause: The College did not document the review and approval of the calculated reimbursement before it was drawn down.
Effect: Key controls over cash management were not operating effectively.
Questioned Costs: None reported
Recommendation: We recommend the College strengthen its policies and procedures to properly design and implement controls over the draw down process.
Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.