Finding Text
Condition: During our testing, we noted that certain draw requests of federal funds were not supported by documentation of the review and approval of those draw requests. Criteria or specific requirement: Cash management (45 CFR 75.342(a)) Monitoring and reporting program performance requires the Organization to monitor and oversee operations of the Federal award supported activities. Effect: Documentation of the initial review and approval of federal funds draw requests was not retained. Cause: Based on our observations, upon change in the Chief Executive Officer role and the abrupt loss of the Chief Financial Officer, existing procedures were not completely transferred to the new officer and employees, and/or service providers. Recommendation: We recommend that documentation of the review and approval of draws on federals funds be obtained and saved prior to requests being submitted. Management?s view: Management agrees with the condition described. Proposed corrective action: The finance department has already implemented a process in which the Chief Financial Officer reviewed draws on federal funds noting no discrepancies. Going forward, the Chief Financial Officer will calculate the amount of the draw on federal funds, which will then be reviewed, approved, and documented by the Chief Executive Officer before the draw is submitted. Anticipated correction date: This has already been implemented retroactively effective January 2023. Responsible official: Gabriela Cordero, Chief Financial Officer.