Criteria: Revenues were recorded in incorrect periods. Grant revenue should be recognized when all grant conditions are satisfied. Condition: Significant audit adjustments were made to correct the timing of revenue recognition based on the conditions stated in the grant agreements. Cause: The Organization does not have sufficient controls in place to prevent or detect errors in the timing of revenue recognition or recognition of liabilities related to grant funds received in advance. Effect: Multiple audit adjustments were identified and made. Recommendation: The Organization should further refine its existing processes so that the necessary accounting adjustments are made when needed. Grant revenue should be recognized in the appropriate period.
Proposed Completion Date: January 31, 2024
Criteria: The Uniform Guidance requires the pass-through entity to monitor subrecipients' use of federal awards. Per the Compliance Supplement, Section M, Subrecipient Monitoring, the Organization must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals. Because the pass-through entity is held accountable for federal awards administered by its subrecipients, the pass-through entity should establish an appropriate subrecipient monitoring process and to evaluate what, if any, additional monitoring activities may be necessary to ensure the subrecipients' compliance.
Condition: The Organization has expenditures of $231,716 to subrecipients. The Organization pays subrecipient annually based on contract. The Organization does not monitor subrecipients' use of federal awards. No invoices are received by the Organization and expenditures are not reviewed to ensure they are allowable per grant budget and federal requirements. Cause: There is inadequate administrative oversight with respect to subrecipient monitoring. Effect: The Organization was not in compliance with subrecipient monitoring requirements. Recommendation: We recommend that the Organization enhance its policies and procedures over subrecipient monitoring. Proposed Completion Date: April 1, 2024
Criteria: Revenues were recorded in incorrect periods. Grant revenue should be recognized when all grant conditions are satisfied. Condition: Significant audit adjustments were made to correct the timing of revenue recognition based on the conditions stated in the grant agreements. Cause: The Organization does not have sufficient controls in place to prevent or detect errors in the timing of revenue recognition or recognition of liabilities related to grant funds received in advance. Effect: Multiple audit adjustments were identified and made. Recommendation: The Organization should further refine its existing processes so that the necessary accounting adjustments are made when needed. Grant revenue should be recognized in the appropriate period.
Proposed Completion Date: January 31, 2024
Criteria: The Organization must have controls in place to ensure costs are allowable per grant agreement and Compliance Supplement. Per the Compliance Supplement, Section B, Allowable Costs/Cost Principles, the Organization must ensure direct charges to federal awards were for allowable costs and adequately documented. Condition: Timecards are reviewed by the appropriate personnel to ensure costs are allowable. Based on 34 timecards selected for testing, 5 did not have approvals documented before the disbursement occurred. Cause: The Organization's controls were not functioning effectively.Effect: Unallowable costs could be submitted for reimbursement due to controls not functioning effectively. Recommendation: We recommend that the Organization document all timecard approvals before the disbursement occurs. Proposed Completion Date: January 31, 2024
Criteria: Revenues were recorded in incorrect periods. Grant revenue should be recognized when all grant conditions are satisfied. Condition: Significant audit adjustments were made to correct the timing of revenue recognition based on the conditions stated in the grant agreements. Cause: The Organization does not have sufficient controls in place to prevent or detect errors in the timing of revenue recognition or recognition of liabilities related to grant funds received in advance. Effect: Multiple audit adjustments were identified and made. Recommendation: The Organization should further refine its existing processes so that the necessary accounting adjustments are made when needed. Grant revenue should be recognized in the appropriate period.
Proposed Completion Date: January 31, 2024
Criteria: The Organization must have controls in place to ensure costs are allowable per grant agreement and Compliance Supplement. Per the Compliance Supplement, Section B, Allowable Costs/Cost Principles, the Organization must ensure direct charges to federal awards were for allowable costs and adequately documented. Condition: Timecards are reviewed by the appropriate personnel to ensure costs are allowable. Based on 34 timecards selected for testing, 5 did not have approvals documented before the disbursement occurred. Cause: The Organization's controls were not functioning effectively.Effect: Unallowable costs could be submitted for reimbursement due to controls not functioning effectively. Recommendation: We recommend that the Organization document all timecard approvals before the disbursement occurs. Proposed Completion Date: January 31, 2024
Criteria: Revenues were recorded in incorrect periods. Grant revenue should be recognized when all grant conditions are satisfied. Condition: Significant audit adjustments were made to correct the timing of revenue recognition based on the conditions stated in the grant agreements. Cause: The Organization does not have sufficient controls in place to prevent or detect errors in the timing of revenue recognition or recognition of liabilities related to grant funds received in advance. Effect: Multiple audit adjustments were identified and made. Recommendation: The Organization should further refine its existing processes so that the necessary accounting adjustments are made when needed. Grant revenue should be recognized in the appropriate period.
Proposed Completion Date: January 31, 2024
Criteria: The Uniform Guidance requires the pass-through entity to monitor subrecipients' use of federal awards. Per the Compliance Supplement, Section M, Subrecipient Monitoring, the Organization must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals. Because the pass-through entity is held accountable for federal awards administered by its subrecipients, the pass-through entity should establish an appropriate subrecipient monitoring process and to evaluate what, if any, additional monitoring activities may be necessary to ensure the subrecipients' compliance.
Condition: The Organization has expenditures of $231,716 to subrecipients. The Organization pays subrecipient annually based on contract. The Organization does not monitor subrecipients' use of federal awards. No invoices are received by the Organization and expenditures are not reviewed to ensure they are allowable per grant budget and federal requirements. Cause: There is inadequate administrative oversight with respect to subrecipient monitoring. Effect: The Organization was not in compliance with subrecipient monitoring requirements. Recommendation: We recommend that the Organization enhance its policies and procedures over subrecipient monitoring. Proposed Completion Date: April 1, 2024
Criteria: Revenues were recorded in incorrect periods. Grant revenue should be recognized when all grant conditions are satisfied. Condition: Significant audit adjustments were made to correct the timing of revenue recognition based on the conditions stated in the grant agreements. Cause: The Organization does not have sufficient controls in place to prevent or detect errors in the timing of revenue recognition or recognition of liabilities related to grant funds received in advance. Effect: Multiple audit adjustments were identified and made. Recommendation: The Organization should further refine its existing processes so that the necessary accounting adjustments are made when needed. Grant revenue should be recognized in the appropriate period.
Proposed Completion Date: January 31, 2024
Criteria: The Organization must have controls in place to ensure costs are allowable per grant agreement and Compliance Supplement. Per the Compliance Supplement, Section B, Allowable Costs/Cost Principles, the Organization must ensure direct charges to federal awards were for allowable costs and adequately documented. Condition: Timecards are reviewed by the appropriate personnel to ensure costs are allowable. Based on 34 timecards selected for testing, 5 did not have approvals documented before the disbursement occurred. Cause: The Organization's controls were not functioning effectively.Effect: Unallowable costs could be submitted for reimbursement due to controls not functioning effectively. Recommendation: We recommend that the Organization document all timecard approvals before the disbursement occurs. Proposed Completion Date: January 31, 2024
Criteria: Revenues were recorded in incorrect periods. Grant revenue should be recognized when all grant conditions are satisfied. Condition: Significant audit adjustments were made to correct the timing of revenue recognition based on the conditions stated in the grant agreements. Cause: The Organization does not have sufficient controls in place to prevent or detect errors in the timing of revenue recognition or recognition of liabilities related to grant funds received in advance. Effect: Multiple audit adjustments were identified and made. Recommendation: The Organization should further refine its existing processes so that the necessary accounting adjustments are made when needed. Grant revenue should be recognized in the appropriate period.
Proposed Completion Date: January 31, 2024
Criteria: The Organization must have controls in place to ensure costs are allowable per grant agreement and Compliance Supplement. Per the Compliance Supplement, Section B, Allowable Costs/Cost Principles, the Organization must ensure direct charges to federal awards were for allowable costs and adequately documented. Condition: Timecards are reviewed by the appropriate personnel to ensure costs are allowable. Based on 34 timecards selected for testing, 5 did not have approvals documented before the disbursement occurred. Cause: The Organization's controls were not functioning effectively.Effect: Unallowable costs could be submitted for reimbursement due to controls not functioning effectively. Recommendation: We recommend that the Organization document all timecard approvals before the disbursement occurs. Proposed Completion Date: January 31, 2024