Finding Text
Criteria or specific requirement – Non-federal entities must establish written procedures and internal controls over the request for and reimbursement of federal funds.
Condition – One individual prepares and processes the request for Federal funds. There is no approval of the reimbursement request prior to the amounts being submitted to the Federal or non-Federal agency for reimbursement.
Context – Of the 11 drawdowns available, we randomly selected three drawdowns for testing. Our random sample was not, nor intended to be, statistically valid. For each drawdown selected, there was no documentation to support CSS had the proper controls in place to review and approve the drawdown before submitting the reimbursement request.
Effect – Drawdown requests could be prepared incorrectly.
Cause – CSS did not have the appropriate controls in place over the cash management process.
Repeat finding – No.
Recommendation – We recommend CSS establish written procedures and internal controls over the request for and reimbursement of federal funds.
Views of Responsible Officials – Management agrees with the finding and recommendation.