Finding Text
2023-003 – Cash Management
Finding Type: Material Noncompliance; Material Weakness in Internal Control over Compliance
Program: Rural Communities Opioid Response – Planning/Rural Health Outreach and Rural Network
Development Program (AL# 93.912); U.S. Department of Health and Human Services; Direct award; all
grant numbers.
Criteria: Management is responsible for establishing and maintaining effective internal control over the
advance payment requests related to federal awards. This includes review and approval for the advance
draw from an individual other than the one requesting the draw, as well as support demonstrating that
existing grant funds received were expended prior to additional funds being requested.
Condition: The Organization was unable to provide documentation to support the advanced draw
calculation estimate or its approval by someone other than the individual who requested the draw for eleven
of the sixteen selections tested. The Organization was unable to support that existing grant funds were fully
expended prior to submitting additional advance draw requests for eleven of the sixteen selections tested.
Cause: The Organization does not have a consistent process in place to estimate the amount of advance
draws for a 30-day period of needed funding, nor do they have a consistent process in place for the
documentation of the review/approval of the advance draw by someone other than the individual who
requests the funds.
Effect: The Organization could advance draw an amount greater than their need for a 30-day period, or
staff could request funds without the proper approval.
Questioned Costs: $460,000.
Recommendation: The Organization should develop a clearly documented process and method to
determine the amount of advance draw not to exceed a 30-day need. This process should include
appropriate review, approval and documentation of the advance draw prior to requesting the funds.
View of Responsible Officials: Management agrees with the finding and will develop a process and method
to determine the appropriate calculation for the advance draw process including the proper review and
approvals.
Repeat Finding - 2022-003