Finding 520139 (2024-003)

2024-003 Segregation of Duties: Internal Control U.S. Department of Treasury No. 21.027 – Coronavirus State and Local Fiscal Recovery Funds Grant Period Year Ended June 30, 2024 Criteria: Some of the selected federal expenses lacked documented approval. Condition and Context: While disbursements were for allowable costs and related activities in the applicable period of performance, cash disbursements were made without documented approval. Three out of fifty-one transactions did not have documented approvals for expenses. Two of the three exceptions were due to ACH transactions lacking an approval process. A verbal approval was provided for one of the three transactions. The approval was unable to be verified, and no documentation of this approval was retained. Effect: Expenses requested for reimbursement could not be in compliance with the federal award and financial reporting may be inaccurate. Cause: The approval over electronic transactions was not implemented and routinely performed. Documentation of approval was not maintained in one instance of the selection. Recommendation: Internal controls over electronic payments should be established and documented to ensure appropriate segregation of duties and accurate grant reimbursement requests. Documentation of approval should be maintained to support the disbursement. Management Response: Processes are being implemented to ensure appropriate review process and document retention, see corrective action plan.