Finding Text
The Center is required to establish and maintain internal controls designed to ensure cash management is maintained in accordance with Federal statutes, regulations, and the terms and conditions of Federal awards. The Center designed and implemented internal controls over allowable costs; however, they failed to consistently follow and document internal controls over allowable costs. The Center's disbursement policy requires appropriate approval prior to payment on disbursement items as well as payroll. During the audit, 5 out of 28 invoies tested did not have evidence of approval prior to payment. Further, 1 out of 3 payroll periods tested di not have evidence of approval prior to payment. Established internal controls over disbursements were properly designed, but not operating effectively. The Center has material weakness in internal control over financail reporting and the allowance cost compliance requirement.