Finding Text
Finding 2022-003: Cash Management and Reporting (Significant Deficiency) Federal Programs: 93.224 - U.S. Department of Health and Human Services Criteria or Specific Requirement: 2 CFR Section 200.303 requires auditees to establish and maintain effective internal control over federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with 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 Organization did not maintain documentary evidence of the review and approval of either its requests for cash draw downs or its performance reports in accordance with the internal control requirements. Questioned Costs: $- Cause: The Organization's management team works collaboratively to prepare the requests for cash draw downs and prepare the performance reports prior to submission. Per discussion with management, the review and approval is performed verbally during this process. As a result, the Organization was not able to provide adequate support to document the review and approval of either its requests for cash draw downs or its performance reports. Effect or Potential Effect: The Organization was not able to provide evidence of the implementation of internal controls related to review and approval for cash draw downs and performance reports. Therefore, these submissions may have been inaccurately prepared. Recommendation: The Organization should retain documentary evidence of its review and approval process, which should occur prior to submission of the requests for cash draw downs and performance reports.