Finding 1241236 (2024-003)

Finding 2024-003 Finding Type: Significant deficiency in internal control Federal Department: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention Identification of the Federal Program: Assistance Listing Number 93.988 – Cooperative Agreements for Diabetes Control Programs Award Number: NU58DP007394 Compliance Requirement(s): Cash Management Criteria: Under 2 CFR Part 200.303 (Internal Controls) and 2 CFR Part 200.305 (Federal Payment Standards), non-federal entities must maintain internal controls that provide reasonable assurances that drawdowns are accurate, reviewed, and aligned with actual immediate cash needs. Condition: For all five cash drawdowns performed during 2024 totaling $1,114,944, we noted no evidence of review prior to submission in the Payment Management Services (PMS) system. Cause: This finding occurred due to oversight and inadequate procedures. Effect: The potential exists for general ledger expenditures to not align with drawn-down funds. Questioned Costs: None. Repeat Finding: Not applicable. Recommendation: We recommend that the Imperative implement procedures to establish, document, and maintain adequate internal controls over the cash drawdown process. View of Responsible Officials: See management’s corrective action plan.