Finding Text
Section III – Major Federal Awards Programs – Findings and Questioned Costs (Cont.) Finding 2025-007: Cash Management - Inadequate Authorization and Supporting Documentation for Reimbursement Requests (Material Weakness) Federal Program : Grants for Transportation of Veterans in Highly Rural Areas Assistance Listing Number : 64.035 Criteria: 2 CFR 200.415(a) requires that financial reports and reimbursement requests be certified as accurate and complete. Strong internal controls require appropriate documentation supporting all drawdown requests. Condition: Reimbursement requests lacked evidence of supervisory approval and did not consistently include required supporting documentation. Cause: A standardized approval workflow for reimbursement and drawdown requests has not been established. Effect: Inadequate documentation increases the risk of inaccurate reimbursement requests, which may result in disallowed costs or repayment obligations. Recommendation: Management should develop and implement a formal approval process requiring supervisor sign-off and attachment of all required supporting documentation prior to submission. Repeat Finding: This is a repeat finding.