Finding Text
Reportable Finding Considered a Material Weakness – Lack of Supporting Documentation for Cash Draws
Program Name: Innovative Approaches to Literacy; Full-Service Community Schools; and Promise Neighborhood
Assistance listing #: 84.215K
Program year: 2024
Federal Awarding Agency: Department of Education
Compliance requirement: Cash Management
Criteria: According to 2 CFR 200.305(b)(4) – If the recipient or subrecipient cannot meet the criteria for advance payments, an advance payment for an initial period may be made, however, after that, the Federal agency or pass-through entity must reimburse the recipient or subrecipient for its actual cash disbursements. In addition, per 2 CFR 200.305(b)(9), the recipient or subrecipient must be able to account for all Federal funds received, obligated, and expended.
Condition: During our testing of cash draws, it was noted that the reimbursement requests submitted for this award were not based on actual cash disbursements, lacked adequate documentation with no internal support retained that showed internal review and approval for the cash draws.
Cause: Policies and internal controls over draw requests were not in place during the year, due in part to turnover in the positions that were in charge of approvals.
Effect: The requests for reimbursement were not in line with actual expenses incurred during the draw period.
Questioned costs: There are no questioned costs related to this finding.
Repeat finding: This is not a repeat finding.
Recommendation: We recommend that the Organization update their policies and procedures surrounding cash management to ensure that funds are drawn on a reimbursement basis, supported by actual expenditures incurred.
Views of Responsible Officials and Corrective Action Plan (unaudited): See corrective action plan.