Review of Internal Controls Over Cash Receipts, Cash Disbursements, Procurement and Property at the Capital Area Community Action Agency, Inc.

EXECUTIVE SUMMARY:

Our review showed that the Capital Area Community Action Agency, Inc. (CACAA) has not developed and implemented an adequate internal control system for the proper management of cash receipts, cash disbursements, procurement and accountability for property. As a result, there is no assurance that the Department of Health and Human Services' funds are or can be expected to be expended and accounted for in accordance with grant terms and conditions.

The internal control system is inadequate because CACAA management did not implement recommendations by the Administration for Children and Families (ACF), other funding sources, and independent auditors (CPA) over a period of at least 15 years. We recommend that ACF take appropriate actions to address problems at this grantee, including consideration of suspension or termination of all ACF funding.

The ACF agreed with our findings and recommendation. The ACF is determining the feasibility of initiating termination proceedings against CACAA.