Finding Text
Subrecipient Transfers - Internal Control and Compliance - Material Weakness - Noncompliance with Cash Management and Subrecipient Monitoring U.S. Department of State - Federal Assistance Listing Number 19.800 Weapons Removal and Abatement Program Criteria The Uniform Guidance requires that non-federal entities mIrnmIze the time between drawdowns of Federal funds and its expenditure for Federal program purposes. Condition Since there is no reconciliation process in place regarding the amounts sent to and expended by subrecipients, we were unable to determine whether federal funds were being passed through faster than necessary. Repeat Finding from Prior Year This is a repeat finding of a prior year. Cause The Organization does not have policies and a process in place to reconcile amounts drawn down on various grants with the amounts being spent on the various grants. Effect The Organization is not in compliance with cash management and subrecipient monitoring requirements. Recommendation We recommend that the Organization develop and implement a system whereby they can reconcile their grant drawdowns with the amounts being expended and amounts passed through to subrecipients. We would further recommend that the monthly reports that foreign country managers submit be signed by the party submitting the report and then signed by the International Director once the report is reviewed. Views of Responsible Officials Management agrees with the recommendation and will work to implement the necessary components of the recommendation. Accounting policies and procedures have been developed and will continue to be implemented.