Finding Text
Negative Operating Cash
Criteria: Management is responsible for implementing adequate controls to spend restricted funds.
Management is responsible for implementing adequate controls to ensure proper cash to meet operating needs.
Condition: Insufficient controls over restricted contributions and grants.
Cause: Lack of controls. No process in place to track restricted fund spending.
Effect: Could result in misused funds.
Questioned Costs: None noted.
Recommendation: Improve internal controls over restricted contributions and grants. Implement a system to track revenue and expenses for restricted funds. Request additional funding for general operations. Views of Responsible Officials and Planned Corrective Actions: Management will enhance internal controls over restricted contributions and grants while implementing a system to track revenue and expenses for restricted funds. Inspiration has already hired a compliance administrator with the responsibility of tracking all local, state, and federal grant revenues and expenditures. Inspiration has also hired a position to enhance relationship development with funders and foundations to increase operating funds.