Finding 1240747 (2025-003)

2025-003: Segregation of Duties – Significant Deficiency Federal Program: AL # 93.568 – LIHEAP – Low Income Home Energy Assistance Program C: Cash Management Criteria: The Region is required to maintain internal controls at a level where underlying support for federal award reimbursement requests can be developed and a determination can be made that the federal awards are getting disbursed properly in accordance with grant requirements. Condition: There is a lack of internal control around the review and approval of reimbursement requests by someone other than the preparer. Cause: The Region is subject to size and budget constraints limiting the number of personnel within the financial department. Questioned Costs: $0 Effect: There is an increased risk of material misstatement to the organization’s financial statements. Recommendation: We recommend the Region review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. Views of responsible officials and planned corrective actions: We agree with this finding. See corrective action plan item 2025-003. Indication of repeat finding: This is a repeat finding from the prior year. See item 2024-003.