Finding Text
2022-001 Lack of Accounting Over Drawdowns Criteria: An entity must establish and maintain effective internal control over the Federal award that provides reasonable 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 and context: The Organization does not have an adequate accounting procedures over the federal draw downs. Cause: The Organization has experienced turnover in the accounting department resulting in lapses in internal controls, policies and procedures related to cash management of federal drawdowns. Effect: The Organization could draw down the incorrect amount of federal funds. Recommendation: The Organization should implement more effective internal controls and policies over federal drawdowns. Organization response: The Organization has hired a new executive director and chief financial officer; the management team has implemented new accounting and financial policies within the accounting department to oversee and maintain federal expenditures are incompliance with grant agreements.