Finding 1223547 (2024-005)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2026-07-10

AI Summary

  • Core Issue: Three cash receipts lacked supporting documentation, raising concerns about accuracy and potential fraud.
  • Impacted Requirements: Internal controls must ensure all cash receipts are documented and reviewed before recording.
  • Recommended Follow-Up: Strengthen internal control policies to require complete documentation for all cash receipts.

Finding Text

Finding 2024-005: Insufficient Supporting Documentation for Cash Receipts for ALN 93.558 Condition: In our sample of 12 cash receipts selected for testing, the Coalition was unable to provide supporting documentation for 3 cash receipt transactions for the period October 1, 2023 to September 30, 2024. Criteria: Internal controls should be designed and operating to ensure that all cash receipts are supported with documentation maintained by management. Cause: The Coalition lacks a formal, enforced policy requiring all cash receipts to be tracked and recorded along with supporting documentation at the time of collection. Additionally, there is insufficient review of the completeness of supporting documentation prior to recording the cash in the accounting system. Effect: Cash receipts may not be recorded accurately without adequate supporting documentation. Additionally, fraud or misappropriation of assets could occur and not be detected by management in a timely manner. Recommendation: Internal control policies should be strengthened to ensure that all cash receipts are accompanied with adequate supporting documentation such as a receipt log, invoices, reimbursement requests and other relevant records. View of Responsible Officials and Planned Corrective Action: The Coalition agrees with the finding and appropriate policies and procedures have been implemented.

Corrective Action Plan

• Formalization of grant cash receipt procedures requiring all federal drawdowns and reimbursement receipts to include supporting documentation, grant reports, reimbursement calculations, and deposit verification.• Implementation of grant-specific reconciliation procedures between reimbursement requests, accounting records, bank deposits, and general ledger activity. • Centralized electronic retention of grant draw documentation and supporting financial records. • Increased supervisory review of federal revenue transactions and reimbursement support prior to recording within the accounting system. • Enhanced monitoring of grant receivable activity and reimbursement timelines. • Strengthened communication protocols between program management, grant administration, and accounting personnel to ensure accurate documentation retention. • Ongoing compliance training focused on federal award management, grant documentation standards, and internal control responsibilities. ACADV believes the corrective actions implemented significantly strengthen the organization's federal grant compliance environment and financial accountability processes.

Categories

Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1223546 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $662,001
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $105,470
16.556 STATE DOMESTIC VIOLENCE AND SEXUAL ASSAULT COALITIONS $76,934
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $41,962
93.591 FAMILY VIOLENCE PREVENTION AND SERVICES/STATE DOMESTIC VIOLENCE COALITIONS $32,654