Finding Text
2022-002 Journal Entry and 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: 5 NH28CE003046-02-00. Compliance Requirements: Activities Allowed or Unallowed and Period of Performance. Type of Finding: Material Weakness. Criteria: Internal controls over financial reporting should include processes that require journal entries and cash disbursements made to the accounting system of sub-ledgers be reviewed and approved by an individual other than the individual responsible for preparing the journal entry or cash disbursement. Condition and Context: There was no evidence of review and approval of journal entries or cash disbursements. Cause: Internal control policies, procedures, and/or best practices were not followed. Effect: Posting of improper journal entries or cash disbursements could be made without proper approval being completed. These costs could be required to be refunded to the government funding agency. Recommendation: We recommend the Organization document proper review and approval of all journal entries and cash disbursements.