Finding Text
Criteria
Part 2, CFR 200, 200.303 states “The non-Federal entity must: 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.”
Condition
While performing tests of the Garden’s internal controls over compliance, specifically related to cash management, we noted that although the Garden operated on a reimbursement basis, supporting schedules provided did not reconcile to amounts drawn on Federal awards during the year. Two instances were noted where the Garden drawing for more on the award than had been incurred, as evidenced by the general ledger.
Cause of Condition
The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance.
Effect of Condition
Noncompliance may impact future funding from Federal awards.
Recommendation
We recommend the Garden implement proper internal control procedures including properly documenting expenditures included in reimbursements and/or draws from Federal awards.