Federal Agency: U.S. Department of Health and Human Services Federal Program: 93.558, Temporary Assistance for Needy Families Cluster Criteria or Specific Requirement - OMB Circular A-122, Costs Principles for Non-Profit Organizations requires specific compliance with the provisions of allowable costs and activities. The Organization is responsible for having internal controls designed to ensure compliance with this provision. Additionally, the Organization may only charge to the federal award, allowable costs incurred during the period of performance. Condition - During our testing of non-payroll expenditures, we identified expenditures that were incurred outside of the award contract period of performance and included in reimbursement requests submitted to the pass-through agency. Cause - The Organization did not maintain proper adherence to internal controls over the federal program as it relates to tracking and allocating the expenditures of federal awards. This includes allocating costs incurred outside of the contract period to the federal program and requesting reimbursement from the agency. The pass-through agency allows the Organization to report expenditures on both a cash and accrual basis, if reimbursement requests of those expenditures are not duplicated. This could lead to confusion when requesting reimbursements for expenditures that may fall outside of the period of performance covered by the award contract. Effect - Noncompliance with the allowable costs and activities of the federal award as described in both the award contract and OMB Circular A-122, Cost Principles for Non-Profit Organizations, could result in reimbursement denials and ultimately lead to the payback of costs or loss of future funding. Questioned Costs - Immaterial amount. Context - As part of our audit procedures, we sampled a total of 24 non-payroll expenditures incurred to test internal controls over compliance and compliance with the allowable costs and activities of federal awards. During our testing of non-payroll expenditures, we noted the following deviations: -Three selections in our statistically valid sample included costs incurred outside of the period ofperformance covered by the award contract for the period from July 2021 through September2021. Repeat Finding - This is a repeat finding from the prior year. See prior year finding 2021-002. Recommendation - We recommend procedures be implemented by the Organization to track and report expenditures eligible for reimbursement based on when it is incurred and retain all related supporting documentation. Additionally, the Organization should choose one basis of reporting (cash or accrual) and apply consistently to expenditures submitted for reimbursement.
Federal Program: All Criteria or Specific Requirement - Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Section 508 ? Auditee Responsibilities, requires the auditee to prepare a schedule of expenditures of federal awards. The schedule must provide the total federal awards expended for each individual federal program and the Assistance Listings Number. Condition - While performing audit procedures on the initial schedule of expenditures of federal awards (?SEFA?) provided, we noted several errors in the reported amounts as expenditures of federal awards. Cause - The internal controls in place to report expenditures of federal awards for reporting on the SEFA were not operating effectively. Effect - The initial SEFA did not accurately reflect the expenditures of federal awards for several programs. Questioned Costs - None Context - In performing audit procedures over the initial SEFA, we identified discrepancies for two programs where the expenditures of federal awards listed on the initial SEFA did not agree with confirmations received from the corresponding cognizant agency. Additionally, in performing audit procedures over grants, we identified three programs where the expenditures of federal awards were not included in the original SEFA. The final and correct amounts for those programs were $36,835. Repeat Finding - No Recommendation - We recommend that management review the current procedures in place for preparation of the SEFA. We also recommend that the SEFA be prepared by a qualified individual in the accounting department, and that review is performed by the Chief Financial Officer, or an equivalent individual.
Federal Agency: U.S. Department of Health and Human Services Federal Program: 93.558, Temporary Assistance for Needy Families Cluster Criteria or Specific Requirement - OMB Circular A-122, Costs Principles for Non-Profit Organizations requires specific compliance with the provisions of allowable costs and activities. The Organization is responsible for having internal controls designed to ensure compliance with this provision. Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, require that, among other things, that direct charges to federal awards be for allowable costs. To be an allowable cost, charges must be supported by appropriate documentation and be properly approved. The specific requirements for allowable activities are unique to each federal program and are found in the laws, regulations, and the provisions of each contract or grant agreement pertaining to the federal program. Condition - During our testing of non-payroll expenditures, we noted that supporting documentation could not be obtained for certain cash disbursements for the federal program. Cause - There is a lack of sufficient adherence to internal controls to ensure supporting documentation for all payments charged to the program are accurately, and adequately maintained. Effect - Lack of supporting documentation could result in misstatements due to error or fraud. This has the potential to result in disbursements being made in amounts that are not allowable program expenses or unauthorized transactions that may be questionable or disallowed expenditures. Questioned Costs ? Immaterial amount. Context - As part of our audit procedures, we sampled a total of 24 non-payroll expenditures incurred to test internal controls over compliance and compliance with the allowable costs and activities of federal awards. During our testing of non-payroll expenditures, we noted the following deviations: - Two selections in our statistically valid sample lacked appropriate documentation to substantiate certain charges included in the expenditures incurred and applied to the federal program. Repeat Finding - No Recommendation - The Organization should re-evaluate adherence to their internal controls over the general disbursement and expenditure allocation processes and implement policies to ensure support is obtained and maintained for all expense transactions.
Federal Agency: U.S. Department of Health and Human Services Federal Program: 93.558, Temporary Assistance for Needy Families Cluster Criteria or Specific Requirement - OMB Circular A-122, Costs Principles for Non-Profit Organizations requires specific compliance with the provisions of allowable costs and activities. The Organization is responsible for having internal controls designed to ensure compliance with this provision. Additionally, the Organization may only charge to the federal award, allowable costs incurred during the period of performance. Condition - During our testing of non-payroll expenditures, we identified expenditures that were incurred outside of the award contract period of performance and included in reimbursement requests submitted to the pass-through agency. Cause - The Organization did not maintain proper adherence to internal controls over the federal program as it relates to tracking and allocating the expenditures of federal awards. This includes allocating costs incurred outside of the contract period to the federal program and requesting reimbursement from the agency. The pass-through agency allows the Organization to report expenditures on both a cash and accrual basis, if reimbursement requests of those expenditures are not duplicated. This could lead to confusion when requesting reimbursements for expenditures that may fall outside of the period of performance covered by the award contract. Effect - Noncompliance with the allowable costs and activities of the federal award as described in both the award contract and OMB Circular A-122, Cost Principles for Non-Profit Organizations, could result in reimbursement denials and ultimately lead to the payback of costs or loss of future funding. Questioned Costs - Immaterial amount. Context - As part of our audit procedures, we sampled a total of 24 non-payroll expenditures incurred to test internal controls over compliance and compliance with the allowable costs and activities of federal awards. During our testing of non-payroll expenditures, we noted the following deviations: -Three selections in our statistically valid sample included costs incurred outside of the period ofperformance covered by the award contract for the period from July 2021 through September2021. Repeat Finding - This is a repeat finding from the prior year. See prior year finding 2021-002. Recommendation - We recommend procedures be implemented by the Organization to track and report expenditures eligible for reimbursement based on when it is incurred and retain all related supporting documentation. Additionally, the Organization should choose one basis of reporting (cash or accrual) and apply consistently to expenditures submitted for reimbursement.
Federal Program: All Criteria or Specific Requirement - Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Section 508 ? Auditee Responsibilities, requires the auditee to prepare a schedule of expenditures of federal awards. The schedule must provide the total federal awards expended for each individual federal program and the Assistance Listings Number. Condition - While performing audit procedures on the initial schedule of expenditures of federal awards (?SEFA?) provided, we noted several errors in the reported amounts as expenditures of federal awards. Cause - The internal controls in place to report expenditures of federal awards for reporting on the SEFA were not operating effectively. Effect - The initial SEFA did not accurately reflect the expenditures of federal awards for several programs. Questioned Costs - None Context - In performing audit procedures over the initial SEFA, we identified discrepancies for two programs where the expenditures of federal awards listed on the initial SEFA did not agree with confirmations received from the corresponding cognizant agency. Additionally, in performing audit procedures over grants, we identified three programs where the expenditures of federal awards were not included in the original SEFA. The final and correct amounts for those programs were $36,835. Repeat Finding - No Recommendation - We recommend that management review the current procedures in place for preparation of the SEFA. We also recommend that the SEFA be prepared by a qualified individual in the accounting department, and that review is performed by the Chief Financial Officer, or an equivalent individual.
Federal Agency: U.S. Department of Health and Human Services Federal Program: 93.558, Temporary Assistance for Needy Families Cluster Criteria or Specific Requirement - OMB Circular A-122, Costs Principles for Non-Profit Organizations requires specific compliance with the provisions of allowable costs and activities. The Organization is responsible for having internal controls designed to ensure compliance with this provision. Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, require that, among other things, that direct charges to federal awards be for allowable costs. To be an allowable cost, charges must be supported by appropriate documentation and be properly approved. The specific requirements for allowable activities are unique to each federal program and are found in the laws, regulations, and the provisions of each contract or grant agreement pertaining to the federal program. Condition - During our testing of non-payroll expenditures, we noted that supporting documentation could not be obtained for certain cash disbursements for the federal program. Cause - There is a lack of sufficient adherence to internal controls to ensure supporting documentation for all payments charged to the program are accurately, and adequately maintained. Effect - Lack of supporting documentation could result in misstatements due to error or fraud. This has the potential to result in disbursements being made in amounts that are not allowable program expenses or unauthorized transactions that may be questionable or disallowed expenditures. Questioned Costs ? Immaterial amount. Context - As part of our audit procedures, we sampled a total of 24 non-payroll expenditures incurred to test internal controls over compliance and compliance with the allowable costs and activities of federal awards. During our testing of non-payroll expenditures, we noted the following deviations: - Two selections in our statistically valid sample lacked appropriate documentation to substantiate certain charges included in the expenditures incurred and applied to the federal program. Repeat Finding - No Recommendation - The Organization should re-evaluate adherence to their internal controls over the general disbursement and expenditure allocation processes and implement policies to ensure support is obtained and maintained for all expense transactions.