Finding Text
Department of Health and Human Services Federal Financial Assistance Listing #93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services Cash Management Significant Deficiency in Internal Control over Compliance Criteria – 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition – There was no evidence retained that the Organization’s cash management requests were reviewed and approved prior to submission. Cause – The Organization did not have an internal control policy in place to ensure documented review and approval of the cash management requests were documented. Effect – The lack of adequate policies governing review and approval increases the risk that employees participating in the federal awards administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs – None reported. Context/Sampling – A nonstatistical sample of 3 out of 8 cash management requests were selected for detail testing and 3 did not include evidence of a documented review by someone other than the preparer. Repeat Finding from Prior Year(s) – No Recommendation – We recommend the Organization implement an internal control policy to ensure that formal documentation of review and approval is obtained and retained. Views of Responsible Officials – Management agrees with the finding.