Finding Text
Condition: A sample of four (4) drawdowns were selected for testing cash management procedures. While we noted the drawdowns were adequately supported by documentation of expenses, our test work found that there was no documentation of management approval of drawdowns before the drawdown occurred.
Criteria: The Uniform Guidance requires organizations who receive funds on a cost reimbursement basis to draw down funds based on allowable expenditures under the grant.
Cause: Implementation of policies and procedures regarding approval of drawdowns was not consistent throughout the fiscal year.
Effect: Noncompliance with the federal award program’s cash management compliance requirements could occur and not be detected and corrected timely. Recommendation: We noted that management established policies and procedures toward the end of the fiscal year to ensure drawdowns were approved prior to the drawdown occurring. We recommend that the Foundation ensure the recently implemented procedures for approval of drawdowns are consistently documented.
Views of Responsible Officials and Planned Corrective Actions: While all drawdown amounts were in alignment with incurred expenses, the Foundation recognizes the importance of maintaining proper documentation to ensure compliance with federal cash management requirements. The Foundation has established a formal practice requiring documented management approval for all drawdowns before they are initiated.