Finding Text
2022-003: Controls over Cash Management (Drawdowns) Program Title: National Organizations of State and Local Officials - Local Community Based Workforce to Increase COVID-19 Vaccine Access AL #: 93.011 Contract Grant Numbers: 6G32HS42695-01-03, 9U3SHS42189-01-01 Federal Award Years: July 31, 2021 through January 31, 2023 and pass-through grant through April 29, 2022 Federal Agency: Department of Health and Human Services Type of Finding: Significant Deficiency Criteria: 2 CFR Section 200.303 of the Uniform Guidance requires the non-Federal entity to 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. Condition: We noted that there is a lack of segregation of duties over cash management, specifically in the process of requesting cash drawdowns. Only one individual in the accounting department prepares, reviews, and submits the drawdown request. Effect or Potential Effect: The preparation, review and submission of the drawdown requests by only one individual of the accounting team poses a risk that errors will not be detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that all requests for reimbursements be reviewed by either the Grant Coordinator or Executive Director to ensure that the program is in compliance with cash management requirements, and ensure the accuracy of the information supporting the request. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See Corrective Action Plan.