Finding Text
2023-001 Cash Disbursement Review and Approval
Information on the Federal Programs: Assistance Listing Number 93.959 Block Grants for Prevention and Treatment of Substance Abuse and Assistance Listing Number 93.276 Drug-Free Communities Support Program Grants (Direct Program). Pass-Through Entity: Central Florida Cares Health Systems, Inc. Pass-Through Award Number: BPC24. Direct Award Number: 6 NH28CE003046-03-02. Compliance Requirements: Activities Allowed or Unallowed and Period of Performance. Type of Finding: Material Weakness.
Condition: All transactions posted in the GL should have a written approval by an appropriate personnel such as the Executive Director.
Criteria: Out of 40 transaction selected for testing, 5 did not have any evidence of proper approval.
Cause: The Organization established its policies and procedures that included processes for proper approval of all transactions during the year, upon receipt of the audit report for the previous year listing this as a finding. The 5 transaction that did not have any evidence of proper approval were all prior to the newly established policy.
Effect: Erroneous or fraudulent transactions could be posted in the GL.
Recommendation: We recommend the Organization continues to follow written policies and procedures for proper approval of all transactions posted in the GL.