Finding Text
Material Weakness in Internal Controls over Compliance for Allowability and Cash Management Identification data: U.S. Department of Health and Human Services – Injury Prevention and Control Research and State and Community Based Programs, Assistance Listing No. 93.136, Agreement Identifying No. NUF2CE002550, No. NUF2CE002484, NVF1CE002310, and NUF2CE002568. Criteria: SAS 115 requires communication, in writing, to management and those charge with governance, of material weaknesses identified in an audit. Condition: For 6 of 40 transactions selected for testing, the Coalition was unable to provide support for the approval of the transaction that was identified as a key control in the Coalition’s policies. For these 6 transactions without support the transaction date occurred between March 27, 2024, and June 19, 2024. Cause: A breakdown in the Coalition’s internal controls over allowability and cash management caused the Coalition to be unable to provide support for the selected transactions. Effect or Potential Effect: The control deficiency is a material weakness that results in a reasonable possibility that a material missstatement of the financial statement will not be prevented, or detected and corrected, on a timely basis. Identification of a Repeat Finding: Repeat finding of 2023-002 Recommendation: The Coalition should review its internal control over allowability and cash management and implement changes in order to comply with the required internal control standards. Views of Responsible Officials: Timesheets are approved by directors and approvals are tracked by the Fiscal Manager on an ongoing spreadsheet. Any missing approvals are requested. In addition, a Payroll Review Report has been developed and presented to and approved by the Executive Director at the issuance of each payroll. It should be noted that all of the exceptions found in the current audit happened prior to this corrective actions initiated by the Coalition in 2024.