Finding Text
2022-008: Emergency Solutions Grant Program – AL # 14.231, Controls over cash management and
reimbursement requests (Material Weakness) (Continued)
Condition:
Requests for reimbursement were not submitted timely, with multiple months submitted 80 days
after the expenditure had incurred. Amounts recorded for revenue did not accurately reflect final
requested reimbursement.
Criteria:
Reimbursements should be submitted timely and should be provided and reconciled to financial
data in general ledger by accounting team. Differences should be resolved, and reimbursement
received should ultimately reflect total program revenue in general ledger.
Cause:
With turnover in staff during the year, items were not always available timely. In addition,
management was not always aware of reporting requirements or aware of activity under program
reimbursements.
Effect:
Errors in reporting could ultimately lead to differences in financial accounting vs program activity.
Accurate and timely reporting and requests can improve cash flows and ensure program is able to
meet funding needs.
Recommendation:
Additionally, spreadsheets used to track grant awards and program expenditures should be
reviewed by someone with an understanding of the program such as the Behavioral Health
Director or another individual in the finance department. These spreadsheets should ultimately
identify amounts that were submitted for request for reimbursement and be recorded in the general
ledger. Amounts recorded for revenue in the general ledger should agree between the two, with
monthly or quarterly reconciliations performed to ensure financial reporting accurately reflects
spending and reimbursement activity.
Views of Responsible Officials and Planned Corrective Action:
VCSB will amend the reconciliations process for CHERP to include a documented review and
approval of all expenses, reimbursement requests, and reimbursements received. Additionally, the
Accounting Director and Director of Finance are working with the program fund manager to
submit requests for reimbursement in a more timely manner.