Finding 1200781 (2025-103)

Cash Management - Federal Agency: Department of Education. Award Name: Adult Education and Family Literacy Act. Program Year: 2025. Assistance Listing Number: 84.002A. Criteria: The recipient must: establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Condition: Non-Federal entities funded under the reimbursement method must maintain documentation to support that reimbursement was requested prior to the date of the reimbursement request. There were no documented review controls indicating a secondary review of expenditures prior to draw down. Context: For four cash drawdowns, there was no documentation over review of the drawdown support prior to requesting the funds. Cause: There was a lack of review of the drawdowns. Effect: Drawdown requests were not reviewed prior to submission. Questioned Costs: None. Repeat Finding: No. Recommendation: All drawdown support should be reviewed prior to requesting the funds. Views of Responsible Parties: We concur with the finding. The absence of required controls over cash management was primarily due to the size of the entity.