Children's Home of Northern Kentucky, Inc.Non-Profit

Finding 2023-002 Cash Management Internal Controls: Federal Program: Title IV-E Prevention Program – Family Preservation Program [AL #93.472]. Criteria: Per the Uniform Guidance in 2 CFR section 200.305, a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States of the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Condition: During testing of compliance requirements and internal controls for cash management, it was determined that the February, 2023 invoice was not reviewed prior to submission and the invoice was overstated by $17,712 as it also contained the MCO portion and not just the federal portion. Cause: The individual that normally performs the review of invoices submitted for payment was on vacation and the review was not performed. Effect: When internal controls are not always being performed, this could result in compliance requirements not being met or errors being made. Questioned Costs: None Context: This is not a systematic problem. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Organization have a procedure in place for reviewing invoices sent for payment that can be consistently applied even in the event of an absence or vacation of the normal reviewer. Views of Responsible Officials: The Organization is in agreement with the finding. The Organization will implement a procedure to ensure that invoices are approved by someone other than the normal reviewer if there is an absence or vacation.