Finding Text
Finding 2022-005: Cash Management and Reporting
Criteria: Under 2 CFR 200.303, organizations that receive federal funding are required to “establish
and maintain effective internal control over the Federal award that provides reasonable assurance that
the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations,
and the terms and conditions of the Federal award. These internal controls should be in compliance
with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller
General of the United States or the “Internal Control Integrated Framework”, issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO).
Condition: No evidence of independent secondary level of review or approval is performed relating to
program reports; additionally, no evidence of review/approval for financial reports or reimbursement
request could be provided. While management asserts that a review and approval of program
reporting, financial reporting and reimbursement requests is taking place, there is no audit trail that
shows the evidence of the control occurring.
Cause: Management did not have effective internal controls in place to ensure that a secondary level
of review of approval is clearly documented, which indicates who performed the control, and when the
control was performed.
Effect or Potential Effect: Without established controls over reporting and reimbursement requests,
there is a reasonable possibility that SAMU would not detect noncompliance in the normal course of
performing duties and correct them in a timely manner.
Questioned Costs: None.
Context: Our audit procedures consisted of testwork performed over cash receipts and draw down
requests from the Federal Government as well as program reports submitted. We consider our sample
to be representative of the population. The condition appears to be systemic in nature.
Identification as a Repeat Finding, if Applicable: Not applicable. Recommendation: We recommend that management of SAMU implement procedures and control
processes to incorporate and document an independent review and approval, evidenced by a
signature/initialing and date of the review and approval taking place prior to submission to the funder.