Finding Text
Finding 2024-005 - Material Weakness: Cash Management - Control Finding
ALN 84.042 - Student Support Services, 84.044 – Talent Search and 84.047 – Upward Bound - TRIO Cluster
Federal Agency: Department of Education
Federal Award Numbers: P042A151026, P044A160377, and P047A170574
Pass-Through Entity: None
Criteria Or Specific Requirement: Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal programs.
Condition: Based on the testing completed over the cash management compliance requirement, the University did not retain documentation of a second review of the cash drawdown to verify that the correct amount of funds are requested.
Cause: Controls over compliance put in place by management were not operating effectively as it relates to these compliance requirements.
Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance.
Questioned Costs: Not applicable.
Context: During testing performed for cash management, for the 5 cash drawdowns reviewed, the draw down was completed without a second review. Statistical sampling was not used to test this compliance requirement
Identification As A Repeat Finding: 2022-004
Recommendation: We recommend that management put a control in place for a second review of the cash drawdown requests. The second review should be properly documented with the reviewer’s signature and the date the review was performed. The second review should be performed by someone other than the preparer and who has knowledge of the grant’s requirements
Views Of Responsible Officials: The University will enforce a review system for all federal drawdown requests. The Grant Accountant, Principal Investigator, and Comptroller will sign and date the drawdown documentation prior to submission. Review checklists will be used to validate expenditures against the general ledger support. Drawdowns are scheduled to be completed by the 15th of each month.