Finding Text
Finding 2023-005: Cash Management
Information on the Federal Program: 97.024 - Emergency Food and Shelter National Board
Program
Type of Finding: Significant Deficiency in Internal Control over Compliance and Material Noncompliance
Criteria: Under 2 CFR § 200.303, organizations that receive Federal funding are required to “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 statutes, regulations,
and the terms and conditions of the Federal award. These internal controls should be in compliance
with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller
General of the United States or the “Internal Control Integrated Framework”, issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO).
Condition: During the audit process, we noted 4 instances in which drawdown requests were
submitted late, and outside of the time frame stipulated in the award agreement.
Cause: It is our understanding that the delayed submissions were approved and discussed with the
funder verbally. The approvals for delayed submission, since done verbally, were not adequately
documented for review during the audit.Effect or Potential Effect: Without documented approvals for delayed submission of drawdown
requests, SAMU risks being noncompliant with award terms and conditions.
Questioned Costs: None.
Context: 4 of 8 drawdown requests tested were not submitted timely as outlined in the agreement. The
sample is representative of the population.
Identification as a Repeat Finding, if Applicable: 2022-005
Recommendation: It is recommended that SAMU implement policies requiring that all verbal
discussions with funders are supported by official documentation.