Finding Text
Criteria: Monthly, the District is required to request funds in the form of a draw down from Health Resources & Services Administration online. The District’s internal control structure should ensure that draw down support is complete, accurate, and made available in a timely and orderly manner.
Condition: During the audit, it was identified that two of four draw downs were not supported completely and consistently. The February 2023 draw down support was completely unsubstantiated for the $366,785 requested and received. The November 2022 draw down was substantiated in support; however, approval for the draw down was not noted as being received.
Cause: Previous leadership processes maintained a majority of their draw down support in paper files that were disorganized which created a difficulty in re-producing for substantiation.
Effect: The draw down support for November 2022 and February 2023 was not complete.
Recommendation: We recommend that the District retain all support in regards to draw downs and create a better filing system.
Managements Response: The District has reviewed the Independent Auditor’s recommendation. The District’s new leadership is already in the process of improving the document support, retention, and filing system in order to alleviate missing documents.