Finding Text
Finding 2024-001, Cash Disbursement Process (Second year repeat comment) Information on the Federal Program - Assistance Listing Number 93.224 Health Care Center Program (Direct Health Center Program Cluster). Compliance Requirements: Activities Allowed or Unallowed. Type of Finding: Material Weakness in internal control over financial reporting and internal controls over Federal major programs. Criteria - Based on documented internal controls, the Organization should be able to provide support for cash disbursements with management's approval. Condition - In 9 instances out of 25 items tested, invoices were not approved by management. In one instance, the supporting invoice was not able to be located. Cause - Discussions with Organization employees indicate the cause of missing documentation and approvals was due to lack of oversight and the new ERP system did not maintain the approvals from the prior ERP system. Effect - The missing support and missing approvals could result in improper nonpayroll expenditures. Questioned Costs - Zero Recommendation - We recommend the Organization follow the documented cash disbursement process and ensure reviews and approvals are documented.