Finding Text
Finding 2023-002: Internal Control over Compliance and Compliance with Cash Management
Federal Programs ALN: 93.575, 93.596, 93.558
Criteria: In accordance with the grant agreement, and Division of Early Learning (DEL) Program Guidance 240.01, Cash Management Procedures, any advance that cannot be expended or offset by September 18, must be returned to DEL by September 30 of the following year.
Condition: The Coalition did not timely remit the unexpended advance related to the 2022- 2023 fiscal year in compliance with the grant agreement and DEL Program Guidance.
Cause: Lack of effective controls surrounding cash management and review of controls to ensure compliance with grant and DEL Program Guidance.
Effect: The Coalition did not timely remit the unexpended advance related to the 2022-2023 fiscal year to DEL until January 8, 2024.
Recommendation: We recommend the Coalition implement procedures to ensure that all advances are reconciled on a monthly basis and remitted to DEL in accordance with the grant agreement and DEL guidance.