Finding 968725 (2023-001)

Section 202 Capital Advance (CFDA #14.157) Type of Finding: Material Weakness Repeat Finding: Finding is a not a repeat finding. Criteria: The Project should establish control activities that ensure that reconciliations of its cash accounts are performed effectively each month. Condition: The Project's reconciliations for its cash and restricted cash accounts were performed utilizing a date earlier than month end. Cause: The Project's controls over monthly reconciliations were not operating effectively. Effect or Potential Effect: Incorrectly reconciling its cash accounts on a monthly basis resulted in an understatement of cash and restricted cash in the amount of $1,252 at December 31, 2023. Perspective Information: The Project performed incorrect reconciliations for its cash and restricted cash accounts for the month of December 2023. The Project has not had a history of incorrect cash reconciliations. Recommendations: The Project should ensure that the monthly reconciliations are performed against the month end bank statements, utilizing the correct date for reconciliation in its accounting software. Views of Responsible Officials: Management concurs with the finding. Management will ensure that these reconciliations are performed monthly against the month end bank statements.