Finding Text
Finding 2023-006 – CASH MANAGEMENT
Type: Significant Deficiency in Internal Control.
Program: ALN 93.493 Congressional Directives
Criteria: Pursuant to 2 CFR 200.303, recipients must, “Establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”
Condition: The CMHSP has established internal controls relating to approvals of cash requests. However, during testing, we noted that cash requests did not contain evidence of required review and approvals.
Cause: This condition was caused by an insufficient internal control process for review and approval of cash requests.
Effect: Cash requests submitted prior to review and approval are at risk of reporting incorrect information.
Questioned Cost: None.
Context: Although amounts listed in the cash requests were supported by the books and records, the requests did not contain evidence of approvals.
Recommendation: We recommend that the CMHSP review their internal controls and make necessary changes to ensure that cash requests are reviewed and approved prior to submission.
Management’s Resp: We are in agreement with this finding.