Finding 20682 (2022-004)

2022-004 Department of Justice and State of South Dakota Department of Public Safety CFDA #16.575, 2022-COMBO-00022, 2022-COMBO-00011 Crime Victim Assistance Cash Management Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: One instance identified in which an independent review was not completed prior to the submission of monthly draw request. Cause: Turnover in the accounting department resulted in a draw request submitted for reimbursement prior to an independent review and approval being completed. Effect: Failure to perform an independent review of draw requests could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported Context/Sampling: Cash draws were reviewed for four months in the Organization?s fiscal year. A total of 12 cash draws were submitted for reimbursement during the Organization?s fiscal year. Repeat Finding from Prior Year(s): Yes, Finding 2021-003 Recommendation: We recommend management ensure a documented independent review and approval is completed prior to submission of the draw request. Views of Responsible Officials: Management is in agreement.