Finding 601788 (2022-002)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-07-19

AI Summary

  • Core Issue: There is a shortfall of $1,849,775 in the restricted cash account compared to the deferred revenue funds for the LIHEAP program.
  • Impacted Requirements: Restricted bank accounts must match the program funds available, which was not met due to funds being held in a centralized account.
  • Recommended Follow-Up: Management should promptly transfer the necessary funds to the program's restricted accounts and keep any unspent funds there.

Finding Text

2022-002 ALN: 93.568 LIHEAP/COVID-19 LIHEAP - Cash Management, Passthrough from Massachusetts Department of Housing and Community Development Condition: Funds in the restricted cash account at June 30, 2022 of $1,965,909 are deficient to the same program deferred revenue funds of $3,815,684 by $1,849,775 on June 31, 2022. Cause: Program funds were retained in the centralized deposit account and not transferred to the program checking account. Criteria: Restricted bank accounts should be equal to program funds on hand. Effect of Potential Effect: Non-transfers of program funds to the program checking account can result in non- compliant use of program funds. Recommendation: We recommend that management immediately transfer program funds to program restricted accounts and retain any unspent funds in the restricted accounts. Views of Responsible Officials: Management agrees with the finding, see Corrective Action Plan.

Categories

Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.568 Covid Low-Income Home Energy Assistance $16.92M
93.568 Low-Income Home Energy Assistance $7.09M
17.264 National Farmworker Jobs Program $900,461
17.259 Wia Youth Activities $554,060