Finding Text
MW2020-006 CASH MANAGEMENT (REPEAT FINDING) (PREVIOUSLY REPORTED AS MW2019-
003)
Condition
The cash management process requires that cash draws be reviewed and approved to ensure the
propriety of draw reimbursement requests. Management was unable to provide the auditor
evidence documenting approval of the drawdowns for the year ended December 31, 2019.
Criteria
2 CFR Part 200 states that entities expending federal grants 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 statues, regulations, and the
terms and conditions of the Federal award. To comply with 2 CFR Part 200, it is required to
submit monthly invoices for the funds received under the federal contract. These invoices will
serve as a record of the services or goods provided during the specified period and will facilitate
accurate tracking and reporting of the funds. In addition to the invoice, any supporting
documentation, such as timesheets, should be maintained with the invoices. The cash
management process should also be adjusted for the receipt of program income.
These documents validate the services provided and ensure transparency and auditability of the
invoiced amount. These amounts should be able to be traced to the general ledger in conjunction
with the time in which they are billed.
Effect
Grant awards and reimbursements may not be recorded correctly and there is a higher risk of
error or misappropriation of assets.Cause
CUAHSI had no fiscal management team during the year ended December 31, 2019, and that all
the books and records for that year had to be recreated from bank statements by and outside
bookkeeping company years after the fact.
Recommendation
The auditor recommends CUAHSI develop and implement controls to ensure an adequate review
process is in place for review of reimbursement requests submitted to granting agencies to ensure
consistent reporting.
Current Year Status
This condition still exists for the year ended December 31, 2020. During the completion of the
audit procedures, the auditor noted that CUAHSI failed to maintain and provide the proper
records and support to reconcile the federal award reimbursements and document their review
and approval process for the year ended December 31, 2020.
View of Responsible Official and Planned Corrective Action
See accompanying Corrective Action Plan.