Finding Text
2022-003 Cash Management Material Noncompliance Cash Management Material Weakness in Internal Control over Compliance U.S. Department of Health and Human Services Passed-through the Arizona Department of Economic Security Refugee and Entrant Assistance State Administered Federal Financial Assistance Listing/CFDA #93.566; ADES18-191650; October 1, 2020 to September 30, 2021 and October 1, 2021 to September 30, 2022 Criteria: For non-Federal entities other than states, payment methods must minimize the time elapsing between the transfer of funds from the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance of redemption of checks, warrants, or payment by other means. Per review of the invoices for the programs and the Organization?s internal control processes, all invoices require approval by someone authorized and that the draw requests should be adequately supported. Condition: Eide Bailly LLP (EB) noted that four out of four draw requests did not have adequate support for the class hours included. Cause: Based on discussions with personnel, lack of supporting documentation occurred due to administrative oversight. Effect: Invoices could be incorrect. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 4 draw requests out of 12 total draw requests were selected for testing. Repeat Finding from Prior Year: Yes, 2021-003 Recommendation: We recommend the Organization?s management routinely review and consider modifications to or implementation of policies and procedures that would strengthen internal controls surrounding the approval and submission process of invoices. Views of Responsible Officials: Management agrees with the finding.