Finding Text
Finding 2022-003 ? Cash Management Federal Agency: Department of Justice Federal Program Name: Comprehensive Opioid, Stimulant, and Substance Abuse Program Assistance Listing Number: 16.838 Pass-Through Agency: N/A Pass-Through Number: N/A Award Period: October 1, 2019 through September 30, 2023 Type of Finding: Significant deficiency in Internal Control over Compliance Criteria or Specific Requirement: TASC is required to establish controls over compliance for all compliance areas. The documented control over cash management was that the CFO reviews and approves invoices to funding agencies. Questioned Costs: None. Context: 5 exceptions were identified from a sample of the original 5 cash drawdowns in order to test the population of 14 drawdowns made during the fiscal year. A review of drawdowns from April 1 through June 30, 2022 showed that TASC did begin to follow the prescribed control following issuance of the prior year single audit. Cause: The operations of the grant are such that program leaders and the CFO communicate frequently on the expense incurred by TASC for reimbursement, but the billings from TASC were prepared and sent by the CFO with no corresponding review. Effect: The lack of segregation of duties in preparation of billings to funders could result in the submission of invoices to funders for which expenses were not incurred. Repeat Finding: This is a repeat finding as Finding 2021-003 in the prior year. Recommendation: TASC should continue to follow the documented policy of documenting preparation and review of billings submitted to funders. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding. Management implemented segregation of duties for this situation shortly after conclusion of the FY21 audit. Management formulated a Segregation of Duties (BUS 123) that included segregation of preparation and review of billings effective July 1, 2022.