Finding 398481 (2023-004)

Finding: 2023-004 –Significant Deficiency in Internal Control over Compliance and Noncompliance – Cash Management Identification of federal program: 93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance Criteria: For purposes of the federal government, 2 CFR Chapter II part 200 Subpart D §200.305 requires for non-Federal entities other than states, payments methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition: Cash draw downs and receipt of federal funds exceeded the amount expended and ultimately were required to be returned. Cause: The Organization did not have controls in place to minimize the time elapsing between the transfer of funds from the United States Treasury and the disbursement of the funds by the Organization. Effect or potential effect: The Organization is not in compliance with 2 CFR §200.305 Questioned Costs: None Context: For this program, a sample of three drawdowns were selected. Two of the three drawdowns exceeded the amount of expenditures incurred at the time of the drawdown and cumulatively through the period of performance requiring the funds to be returned. Identification of Repeat Finding: Not applicable. Recommendations: Management should implement controls to minimize the time elapsing between the transfer of funds from the United States Treasury and the disbursement of the funds by the Organization. Views of Responsible Officials: Please refer to Corrective Action Plan.