2025-001 Finding – Significant Deficiency in Internal Controls over Cash Management Context and Cause – It was noted during the audit that there was not a documented review of the selected cash draws for the program tested. Internal controls should be designed to include a documented supervisory review of cash draw requests to ensure accuracy, proper authorization, and compliance with program requirements and the Code of Federal Regulations 200.303. PYB is aware of our Policy for a documented review, but due to competing priorities and impact on workload, the Fiscal Director did not consistently perform the control during the time period that was tested. Auditor Recommendation – Kern & Thompson recommend that PYB re-implement the procedure noted in the prior year, where a supervisor’s initials and date of review was documented on the support for each cash draw, prior to draw down of federal funds. Action Taken – PYB implemented a similar, improved review procedure effective with the October 2025 draw, submitted December 17, 2025. The new procedure uses email to provide documents for review and to document approval of the draw. The Fiscal Director is responsible for submitting cash draws and must send the email to both the Executive Director and the Accountant for review. Each month's emailed documentation includes the DOL income statement for the month (showing the amount for reimbursement); a confirmation that supporting documentation has been attached to the draw request; and a draw confirmation confirming the date of submission, the amount, the date funds should be deposited to PYB’s account, and the justification required for the payment. The Fiscal Director also includes information about the amount of funds remaining on the grant award. After reviewing the documents, the Executive Director replies with approval.