Finding Text
2022-007 - Cash Management
Federal Program Information:
ALN - 66.458 - Clean Water State Revolving Funds
Criteria: The following CFR(s) apply to this finding: 2 CFR section 200.302(b)(6)) & 2
CFR section 200.305(b) (3).
Condition: During audit procedures, it was identified that the Town did not have a cash
management policy in place.
Cause: The Town has experienced turnover in the Treasurer’s position over the past
few years, which has delayed the policy implementation.
Effect: The Town may not have adequate policy and procedures in place to safeguard
its most liquid assets.
Identification of Questioned Costs: None identified.
Context: The population consisted of 12 out of the 30 pay requisition deposit of
reimbursements from the fiscal year were examined. Out of the 12 selections only 4
deposits had backup documentation and those 4 were not properly recorded. The other
8 were lacking proof that deposits were recorded properly.
Repeat Finding: This is a repeat finding of 2021-006.
Recommendation: It is recommended that the Town adopt a cash management policy
that follows the Uniform Guidance and that the Town implement internal control
processes and procedures to ensure that the adopted policy is followed.
Views of Responsible Officials and Corrective Action Plan: Client agrees with finding,
and a version of their response can be found in the Corrective Action Plan. Please see
the Corrective Action Plan issued by the Town of Livermore Falls.