Finding Text
2023-004 Internal Control over Cash Management and Matching U.S. Environment Protection Agency Pass-Through from Kansas Department of Health and Environment No. 66.460 - 319 Program: Nonpoint Source Implementation Grants John Redmond Reservoir WRAPS Implementation 2022-2025, Fall River/Toronto WRAPS Implementation 2022-2025, R Michael Rhoades Community Wetlands Project, and Land and Water Preservation Through Conservation Easements Grant Period Year Ended December 31, 2023 Type of Finding: Internal Control Criteria: The Organization lacked consistent use of internal control procedures over cash management and matching. Condition and Context: The Organization had ten different WRAPS grants included in the major program during the year ended December 31, 2023. The Organization files Financial Status Reports quarterly for each grant. Two of the four quarterly WRAPS reports were tested for each grant open during the year. Of the ten WRAPS grants, two grants were not reviewed prior to submission to the granting agency for the third quarter. Two additional grants under the assistance listing number had no control over matching. Cause: Internal control procedures were not documented and applied consistently to ensure accurate reporting. Effect: Internal controls were lacking on four of the twelve grants, which could lead to improper reporting of grant expenses. Recommendation: The Organization should develop a written policy that includes an internal review of grant matching expenses and reports filed along with the related supporting documentation. Proper segregation of duties includes a person performing the process with oversight from another person. We recommend that another person review the expenses being claimed as matching expenses and review the reports prior to being filed with the state. Management Response: Management agrees with finding. Procedures are being implemented to ensure an appropriate review process, see attached corrective action plan.