COMMUNITY ACTION PROGRAM REGION VII, INC.

2024-003: Segregation of Duties – Significant Deficiency AL # 93.568 – LIHEAP – Low Income Home Energy Assistance Program C: Cash Management Criteria The Region is required to maintain internal controls at a level where underlying support for federal award reimbursement requests can developed and a determination can be made that the federal awards are getting disbursed properly in accordance with grant requirements. Condition There is a lack of internal control around the review and approval of reimbursement requests by someone other than the preparer. Cause The Region is subject to size and budget constraints limiting the number of personnel within the financial department. Questioned Costs $0 Effect There is an increased risk of material misstatement to the organization’s financial statements. Recommendation We recommend the Region review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. Views of Responsible Officials and Planned Corrective Actions We agree with this finding. We will improve monitoring and implement new procedures to properly segregate accounting functions as much as possible for the small size of the Region. Indication of Repeat Finding This is not a repeat finding from the prior year.