Finding Text
Cash Management/Matching/Interest Earned
Foster Care – ALN 93.658
Adoption Assistance – ALN 93.659
County Children & Youth Agency Programs
Criteria: Pursuant to 2 CFR part 200 section 302, an entity’s financial management
systems must be sufficient to permit the tracing of funds to a level of
expenditures adequate to establish that such funds have been used in accordance with the Federal statutes, regulations, and the terms and conditions of the Federal award.
Condition: As a result of our testing of Cash Management, we noted that County Children & Youth Agency Programs funds are included in the operating funds of the County.
Cause: The current accounting system is not configured for the tracking of separate funding streams.
Effect: The County is not in compliance with the Cash Management, Matching, or Interest Earned requirements and internal controls are not functioning as designed. The funding streams are being commingled and could be used to fund expenditures not related to the grant programs. In addition, the County was unable to clearly demonstrate their match to the County Children & Youth Agency Programs. The finding was a repeat of Finding 2021-002.
Questioned Costs: The amount of questioned costs, if any, is indeterminable.
Recommendation: The County should establish a separate fund to account for the activity of the
County Children & Youth Agency Programs.
Management’s
Response: The County agrees with the finding and will continue to work to match the various revenue and expense sources for County Children & Youth Agency Programs account maintained in the County accounting system to insure that the proper starting fund balance is generated. Additionally, the County has worked with the fiscal manager for its Children and Youth Agency to provide better compatibility between the accounting system utilized through the County Children & Youth Agency Programs with its corresponding accounting system utilized through the County’s financial department; this effort assists with establishing the fund balance necessary to maintain a separate fund to better track the restricted funds associated with the County Children & Youth Agency Programs.