Finding Text
2024-001: CASH MANAGEMENT
Type: Considered a significant deficiency in internal control over compliance/immaterial noncompliance
Program: ALN 93.788 Opioid STR; grant number H79TI085750
ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (SUD Block Grant); grant number B08TI085813
Criteria: As detailed by 2 CFR 200.305(b), “For recipients and subrecipients other than States, payment methods must minimize the time elapsing between the transfer of funds from the Federal agency or the pass-through entity and the disbursement of funds by the recipient or subrecipient regardless of whether the payment is made by electronic funds transfer or by other means.”
Condition: During testing, it was noted that cash was requested prior to disbursement of funds by a month or more.
Cause/Effect: This condition appears to be the result of a misunderstanding of the cash management requirements by management.
Questioned Cost: Immaterial
Recommendation: We recommend that the CMHSP review its methods to ensure that cash requests are made for expenditures for which disbursement has been made.