Finding Text
Finding 2023-003 Significant Deficiency: Cash Management – Control Finding
ALN 17.805 – Homeless Veterans’ Reintegration Program
Federal Agency: U.S. Department of Labor
Pass-Through Entity: None, direct award to St. Patrick Center
Criteria or Specific Requirement: The Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal program.
Condition: We noted through procedures performed that management did not perform a review of a reimbursement request to ensure its accuracy, prior to it being submitted to the federal agency.
Cause: Internal controls over compliance put in place by management were not designed effectively to ensure a review of reimbursement requests was performed, documented and retained.
Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance relating to cash management.
Questioned Costs: Not applicable.
Context: For a sample of two requests, one reimbursement packet request was not reviewed for accuracy prior to its submission to the federal agency.
Identification as a Repeat Finding: Not applicable.
Recommendation: We recommend that reimbursement requests submitted to federal agencies are reviewed by someone knowledgeable about federal grants and be retained in a shared location to prevent the loss of data when there is turnover.
Views of Responsible Officials: St. Patrick Center (SPC) will review reimbursements prior to forwarding to the federal grant agency. The Senior Director of Finance or designate, will review the invoices for accuracy. An initial or signature will be added to the reimbursement request, validating review was completed. After review is completed and signature/initial obtained, the reimbursement will be forwarded to the appropriate agency for payment.