Finding Text
Finding 2023-001: Inadequate Controls over Cash Management
Compliance Requirement: Cash Management
Type: Material Noncompliance and Material Weakness over Internal Control
Federal Agency: Department of Health and Human Services
AL Numbers and Titles: 93.860 – Emerging Infections Sentinel Networks
Federal Award Number: NU50CK000478
Questioned Costs: $179,155
Repeat Finding: No
Criteria: The Society requests funds from the U.S. Department of Health and Human
Services under the reimbursement payment method. Draw down requests should
be timed to ensure that Federal cash on hand is the minimum needed for
disbursements/reimbursements to be made immediately or within 10 days. If not
spent or disbursed within 10 days, funds must be returned to the awarding
agency.
Condition: Management disclosed to us that they overdrew $179,155 in federal funding
during the year. The excess cash on hand was not returned to the funding source
in a timely manner.
Cause: There was only one person preparing and submitting the cash draw requests.
There was no secondary review process in place.
Effect: The Society was not in compliance with federal regulations concerning
disbursement of federal funds and excess cash. In addition, a lack of
independent review of cash draw requests could result in a reasonable
possibility that the Organization would not detect errors in the normal course of
performing duties and correct them in a timely manner.
Recommendation: We recommend that management ensure a documented independent review and
approval is completed prior to submission of the cash draw request. We also
recommend that potential excess cash balances are reviewed frequently.
Views of Responsible
Officials Corrective
Actions: Management agrees with this finding. Please refer to the Corrective Action
Plan.