Finding 544405 (2024-001)

Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires recipients of federal grants to establish internal controls to over cash drawdown requests to minimize the risk of errors and time between drawdown of funds compared to the expenditure of the funds. Condition: During our testing, we noted a lack of internal controls designed to ensure the cash management requirements are being met as per 2 CFR Part 200. Questioned costs: None Context: We noted through our testing of drawdowns that there were no review or approval of drawdown requests before April 2024. The same individual was both calculating the drawdown requests and initiating the requests without formal review or documentation of approval. Subsequent to April 2024 (when the recommendation was made to implement a formal review process) we noted compliance. Cause: Lack of internal control processes Effect: The auditor noted no instances of noncompliance with the provisions of cash management; however, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance. Repeat finding: Yes, see prior year finding FA 2023-001. Recommendation: Based on our testing, we noted that the May and July 2024 drawdowns were approved prior to submission. We recommend management continue to maintain this process in order to maintain proper internal controls over compliance. Views of responsible officials: There is no disagreement with the audit