Finding Text
2022-006 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for Africa Agency for International DevelopmentDepartment of State - Federal Financial Assistance Listing #98.001, USAID Foreign Assistance for Programs OverseasCash ManagementType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 on the Schedule, and award number 720BHA22GR00046 under Federal Financial Assistance Listing #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR section 200.305 sets forth the advance payments? standards non-federal entities, other than states, must follow when operating federal programs and the requirement that cash advances be placed in an interest-bearing account. CVT?s internal control structure should be designed to properly place funds received as cash advances are placed in an interest-bearing account.Condition: CVT does not have internal control system designed to ensure advance payments are placed in an interest-bearing account.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: Risk of interest income that should be earned and reported.Questioned Costs: None reportedContext/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 6 requests out of 31 total requests were selected for testing. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 4 requests out of 17 total requests were selected for testing.Repeat Finding from Prior Year: NoRecommendation: We recommend management complete an extensive review over cash management policies to make sure requirements under the CFR section are met.Views of Responsible Officials: Management agrees with this finding.