Finding 372111 (2023-001)

Federal Program Name: International Programs to Support Democracy, Human Rights, and Labor Assistance Listing Number: 19.345 Federal Award Identification Number and Year: S-LMAQM-21-GR-3217 - 2023 Award Period: August 19, 2021 through August 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires recipients of federal grants to establish internal controls to over cash drawdown requests to minimize the risk of errors and time between drawdown of funds compared to the expenditure of the funds. Condition: During our testing, we noted a lack of internal controls designed to ensure the cash management requirements are being met as per 2 CFR Part 200. Questioned costs: None Context: We noted through our testing of drawdowns that there is no review or approval of drawdown requests. The same individual is both calculating the drawdown requests and initiating the requests without formal review or documentation of approval. Cause: Lack of internal control processes Effect: The auditor noted no instances of noncompliance with the provisions of cash management; however, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance. Recommendation: We recommend that internal controls are designed to ensure an adequate review and approval process is in place before submission of any drawdown requests. Views of responsible officials: There is no disagreement with the audit finding. See Corrective Action Plan.