Finding Text
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 in this audit report.