Finding Text
Finding 2022-002 ? Internal Control Deficiency Cash Management Identification of the federal program: Federal Grantor: United States Department of Health and Human Services Assistance Listing No.: 93.048 Program Name: Special Programs for the Aging, Title IV, and Title II, Discretionary Projects Criteria or Specific Requirement (including statutory, regulatory or other citation): Section 200.303 of the Uniform Guidance states the following regarding internal control: ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework,? issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: There is no evidence of internal controls in place to ensure that requests for reimbursement are based on expenses paid for by AdviseWell. Cause: Controls were not designed to properly to ensure the monthly cash draw downs were complete and accurate and based on expenses that were paid for by AdviseWell. Effect or potential effect: Inaccurate requests for reimbursement could occur. Questioned Costs: None. Context: A monthly profit and loss statement is generated for each grant within the program. This monthly statement is used to make the monthly request for reimbursement. There is no documentation evidencing that the monthly profit and loss statement is reviewed. Additionally, there is no process in place to ensure that the expenditures have been paid for prior to requesting reimbursement. Identification as a repeat finding, if applicable: Not a repeat finding Recommendation: AdviseWell should implement internal controls to ensure expense are paid for prior to requesting reimbursement and that any inputs used in the request for reimbursement are reviewed and evidence of that review is retained. View of Responsible Officials: Management agrees with the finding. Controls will be implemented and documentation retained to ensure cash management drawdowns are complete and accurate and based upon expenses paid for by the Organization.