Finding Text
Criteria: The School must design, implement, and maintain effective internal controls over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School's federal program. Condition: The School could not process certain cost of living disbursements through electronic funds transfers, making it necessary to issue checks to recipients. Further, the School did not maintain adequate supporting documentation of initial check disbursements. Cause: The School did not obtain appropriate banking information from certain recipients in order to make electronic disbursements in a timely manner. Effect: Certain cost of living disbursements were initially processed as checks, but later processed through electronic funds transfers. Further, the School did not maintain adequate supporting documentation of the initial check disbursements. Perspective Information: We were unable to test the internal controls surrounding the processing of the cost of living disbursements adequately due to the School not maintaining adequate documentation. Recommendations: We recommend that the School ensure policies and procedures are implemented and adhered to related to obtaining recipient banking information. We also recommend that adequate documentation is maintained for any check disbursements. Views of Responsible Officials and Planned Corrective Actions: The School will ensure that adequate policies and procedures are implemented and followed.