Finding Text
Criteria or Specific Requirement
According to §200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must 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.
Condition and Context
During our testing, we noted the department was unable to provide documentation to support
management approval prior to the drawdown of federal funds for 3 selections.
Effect
The Organization may drawdown the incorrect amount of federal funds.
Questioned Costs
None identified.
Cause
Management oversight. Approvals were done verbally and no documentation was recorded.
Recommendation
We recommend the Organization to review internal controls in regards to the approval of federal fund
drawdown requests.Views of Responsible Officials
We have reviewed all our internal controls to ensure all approvals are documented. The procedure has
been updated to include preparing the draw documentation, entering the accounts receivable invoice
into the accounting system, which now requires an approval for all accounts receivable invoices. Once
the accounts receivable invoices are approved in the accounting system then a draw down can be
requested in the payment management system. This new process to ensure the documented approval
of federal fund drawdown's was implemented mid-year 2024, after the three selections in this finding
were completed.