Finding Text
Finding 2022-003: Cash Management - Cash Requisitions (Material Weakness) Criteria: Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to reimbursement request. For funding requests made in advance of related expenditures, requests must be in amounts that minimize the time between cash receipt and when the funds are spent. Review of funding requests must be performed by an employee with knowledge of the government contract and of the funding needs of the federal program. Statement of Condition: For all selected samples of funding requests for cost reimbursement contracts, there was no evidence of review and approval of the funding requests submitted. Cause: Procedures and internal controls associated with the preparation of funding requests were not adequately documented. Effect: Management did not have sufficient documentation for the funding requests submitted for government contracts. Questioned Costs: None Identification of Repeat Finding: No Recommendation: We recommend that management implement policies, controls and procedures to evidence review and approval of all funding requests from government contracts to comply with applicable cash management requirements. View of Responsible Officials: Management is in agreement with the finding. Management is in the process of implementing additional policies, procedures and controls over the preparation, review and approval of funding requests submitted for government contracts.