Finding Text
Federal agency name: U.S. National Science Foundation
Federal program title: Geosciences, Computer and Information Science and Engineering, Office of Cyber Infrastructure & Integrative Activities
AL No.: 47.050, 47.070, 47.079, 47.080 & 47.083
Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019-05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), EAR-2028793 (05/15/2020 – 04/30/2021), OAC-1931278 (10/1/2019 – 09/30/2022), OAC-1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2022), OISE-1855654 (05/15/2019 – 12/31/2023), OAC-1664061 (10/01/17 – 09/30/2022) & OIA-1937099 (09/01/2020 – 08/31/2021)
Pass Through Entity: Utah State University & University of Cincinnati
MW2020-006 CASH MANAGEMENT
Criteria
2 CFR Part 200 states that entities expending federal grants must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statues, regulations, and the terms and conditions of the Federal award. To comply with 2 CFR Part 200, CUAHSI was required to submit monthly invoices for the funds received under the federal contract. These invoices will serve as a record of the services or goods provided during the specified period and will facilitate accurate tracking and reporting of the funds. In addition to the invoice, any supporting documentation, such as timesheets, should be maintained with the invoices. The cash management process should also be adjusted for the receipt of program income.
These documents validate the services provided and ensure transparency and auditability of the invoiced amount. These amounts should be able to be traced to the general ledger in conjunction with the time in which they are billed.
Condition
The cash management process requires that cash draws be reviewed and approved to ensure the propriety of draw reimbursement requests. Management was unable to provide the auditor evidence documenting approval of the drawdowns for the year ended December 31, 2020.
Cause & Context
CUAHSI had no fiscal management team during the year ended December 31, 2020 to ensure compliance with proper policies and procedures. The books and records for the year ended December 31, 2020 were recreated by the current management team during 2023 to 2024.
Effect
Grant awards and reimbursements may not be recorded correctly and there is a higher risk of error or misappropriation of assets.
Questioned Costs
None
Prior Year Audit Finding
Yes, previously reported as MW2019-003.
Recommendation
The auditor recommends CUAHSI develop and implement controls to ensure an adequate review process is in place for review of reimbursement requests submitted to granting agencies to ensure consistent reporting.
View of Responsible Official and Planned Corrective Action
See accompanying Corrective Action Plan.