Finding Text
2021-006 - Cash Management
Federal Program Information:
ALN - 66.458 - Clean Water State Revolving Funds
Criteria: The following CFR(s) apply to this finding: 2 CFR section 200.302(b)(6)) & 2
CFR section 200.305(b) (3).
Condition: During audit procedures, it was identified that the Town did not have a cash
management policy in place.
Cause: The Town has experienced turnover in the Treasurer’s position over the past
few years, which has delayed the policy implementation.
Effect: The Town may not have adequate policy and procedures in place to safeguard
its most liquid assets.
Identification of Questioned Costs: None identified.
Context: The population consisted of 4 out of 10 pay requisites deposit of
reimbursements from the fiscal year were examined. Out of the 4 selections only 1
deposit had backup documentation. The other 3 were lacking prove that deposits were
recorded properly.
Repeat Finding: This is not a repeat finding.
Recommendation: It is recommended that the Unit adopt a cash management policy
that follows the Uniform Guidance, and that the Unit implements internal control
processes and procedures to ensure that the adopted policy is followed.
Views of Responsible Officials and Corrective Action Plan: Client agrees with finding,
and a version of their response can be found in the Corrective Action Plan. Please see
the Corrective Action Plan issued by the Town of Livermore Falls.