Finding Text
2022-003 – Cash Management
Finding Type: Material Noncompliance; Material Weakness in Internal Control over Compliance
Program: Rural Communities Opioid Response – Planning/Rural Health Outreach and Rural Network
Development Program (AL# 93.912); U.S. Department of Health and Human Services; Direct award; all
grant numbers.
Criteria: Management is responsible for establishing and maintaining effective internal control over the
advance payment requests related to federal awards.
Condition: The Organization was unable to provide documentation to support the advanced draw
calculation estimate or its approval by someone other than the individual who requested the draw for 3 of
the 11 selections tested.
Cause: The Organization does not have a consistent process in place to estimate the amount of advance
draws for a 30-day period of needed funding, nor do they have a consistent process in place for the
documentation of the review/approval of the advance draw by someone other than the individual who
requests the funds.
Effect: The Organization could advance draw an amount greater than their need for a 30-day period, or
staff could request funds without the proper approval.
Questioned Costs: $100,000
Recommendation: The Organization should develop a clearly documented process and method to
determine the amount of advance draw not to exceed a 30-day need. This process should include
appropriate review, approval and documentation of the advance draw prior to requesting the funds.
View of Responsible Officials: Management agrees with the finding and will develop a process and method
to determine the appropriate calculation for the advance draw process including the proper review and
approvals.