Audit 309722

FY End
2023-06-30
Total Expended
$792,633
Findings
8
Programs
2
Year: 2023 Accepted: 2024-06-24

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
401814 2023-003 Material Weakness Yes P
401815 2023-004 Material Weakness Yes P
401816 2023-003 Material Weakness Yes P
401817 2023-004 Material Weakness Yes P
978256 2023-003 Material Weakness Yes P
978257 2023-004 Material Weakness Yes P
978258 2023-003 Material Weakness Yes P
978259 2023-004 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
17.264 National Farmworker Jobs Program $705,024 Yes 2
94.002 Retired and Senior Volunteer Program $87,609 - 2

Contacts

Name Title Type
F8FHKGFEGGC3 Leecia Walker Auditee
9312568526 James R. Jobe Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedules of expenditures of federal awards include the grant activity of the Tennessee Opportunity Programs, Inc. Federal awards represent current period expenses charged to the grant as well as current period revenues recognized from the grant, recorded on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The election to use the 10% de minimis indirect cost rate has not been made for the above grants. Tennessee Opportunity Programs, Inc. used a provisional indirect cost rate of 15.4%.

Finding Details

2023-003 Grant Expenditures (Repeat Prior Year Audit Finding 2022-004; Originally Reported as Finding 2020-005) Criteria: Expenditures used to support grant reimbursement requests should agree with amounts recorded in the general ledger accounting system. Condition and Context: In our testing, we noted that the total expenditures recorded in the general ledger accounting system by grant program did not agree in total to the spreadsheets used to support grant reimbursement requests. Cause: Staff use spreadsheets outside of the general ledger accounting system to track expenditures and make grant reimbursement requests. During the June 30, 2023 fiscal year, staff utilized the accounting system to better track grant revenues and expenditures by grant program. However, the breakdown of expenditures used on these spreadsheets did not always match the breakdown used when the expenditures were posted in the general ledger accounting system. Effect or Potential Effect: Expenditures could be duplicated, or eligible expenditures could be omitted from grant reimbursement requests. Recommendation: The coding of expenditures in the general ledger accounting system should reflect the amounts requested under each grant. Additionally, reconciliations should be performed regularly to ensure expenditures are not duplicated or eligible expenditures are not omitted from grant reimbursement requests. Responsible Official's Response: Processes have been put into place to make sure that variances do not occur. Any questions with allowable costs have been referenced in 2 CFR 200 subpart E used for a common procedure for all expenses. The executive director and office manager will review expenditures prior to the distribution of office expenses from among the funds, which will ensure accuracy before the request is made. This will also eliminate the number of entries which need to be adjusted in the expenses. Steps have been implemented since the finding last year to eliminate variances by the review of the Executive Director and Office Manager of expenditure requests, prior to the funding drawdowns.
2023-004 Schedule of Expenditures of Federal Awards (Repeat Partially Resolved Prior Year Audit Finding 2022-005; Originally Reported as Finding 2020-006) Criteria: The information in the Schedule of Expenditures of Federal Awards (SEFA) should be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Condition and Context: The grant expenditures on the SEFA were not reconciled to the general ledger accounting system or other records used to prepare the financial statements. Cause: Revenue accounts and internal funds by grant program have been created for each reimbursement grant program. However, grant receivables were not recorded and revenue accounts for each reimbursement grant program were not reconciled to the underlying expenditures in the accounting and other records used to prepare the financial statements and SEFA. Effect or Potential Effect: The SEFA could be materially misstated if grant expenditures reported on the SEFA are not reconciled to the underlying accounting and other records used to prepare the financial statements. Recommendation: Reimbursement grant revenue accounts should be reconciled to the underlying grant expenditures on the grant request and other reports on a timely basis. Responsible Official's Response: Frequent reconciliations, along with implementation of policy and procedures, has allowed data to be accurate in the accounting system while matching data information on government reports since the finding from prior year. The organizational staff has adequately added and maintained information in the accounting software as requested from previous finding on prior year, which should meet OMB requirements.
2023-003 Grant Expenditures (Repeat Prior Year Audit Finding 2022-004; Originally Reported as Finding 2020-005) Criteria: Expenditures used to support grant reimbursement requests should agree with amounts recorded in the general ledger accounting system. Condition and Context: In our testing, we noted that the total expenditures recorded in the general ledger accounting system by grant program did not agree in total to the spreadsheets used to support grant reimbursement requests. Cause: Staff use spreadsheets outside of the general ledger accounting system to track expenditures and make grant reimbursement requests. During the June 30, 2023 fiscal year, staff utilized the accounting system to better track grant revenues and expenditures by grant program. However, the breakdown of expenditures used on these spreadsheets did not always match the breakdown used when the expenditures were posted in the general ledger accounting system. Effect or Potential Effect: Expenditures could be duplicated, or eligible expenditures could be omitted from grant reimbursement requests. Recommendation: The coding of expenditures in the general ledger accounting system should reflect the amounts requested under each grant. Additionally, reconciliations should be performed regularly to ensure expenditures are not duplicated or eligible expenditures are not omitted from grant reimbursement requests. Responsible Official's Response: Processes have been put into place to make sure that variances do not occur. Any questions with allowable costs have been referenced in 2 CFR 200 subpart E used for a common procedure for all expenses. The executive director and office manager will review expenditures prior to the distribution of office expenses from among the funds, which will ensure accuracy before the request is made. This will also eliminate the number of entries which need to be adjusted in the expenses. Steps have been implemented since the finding last year to eliminate variances by the review of the Executive Director and Office Manager of expenditure requests, prior to the funding drawdowns.
2023-004 Schedule of Expenditures of Federal Awards (Repeat Partially Resolved Prior Year Audit Finding 2022-005; Originally Reported as Finding 2020-006) Criteria: The information in the Schedule of Expenditures of Federal Awards (SEFA) should be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Condition and Context: The grant expenditures on the SEFA were not reconciled to the general ledger accounting system or other records used to prepare the financial statements. Cause: Revenue accounts and internal funds by grant program have been created for each reimbursement grant program. However, grant receivables were not recorded and revenue accounts for each reimbursement grant program were not reconciled to the underlying expenditures in the accounting and other records used to prepare the financial statements and SEFA. Effect or Potential Effect: The SEFA could be materially misstated if grant expenditures reported on the SEFA are not reconciled to the underlying accounting and other records used to prepare the financial statements. Recommendation: Reimbursement grant revenue accounts should be reconciled to the underlying grant expenditures on the grant request and other reports on a timely basis. Responsible Official's Response: Frequent reconciliations, along with implementation of policy and procedures, has allowed data to be accurate in the accounting system while matching data information on government reports since the finding from prior year. The organizational staff has adequately added and maintained information in the accounting software as requested from previous finding on prior year, which should meet OMB requirements.
2023-003 Grant Expenditures (Repeat Prior Year Audit Finding 2022-004; Originally Reported as Finding 2020-005) Criteria: Expenditures used to support grant reimbursement requests should agree with amounts recorded in the general ledger accounting system. Condition and Context: In our testing, we noted that the total expenditures recorded in the general ledger accounting system by grant program did not agree in total to the spreadsheets used to support grant reimbursement requests. Cause: Staff use spreadsheets outside of the general ledger accounting system to track expenditures and make grant reimbursement requests. During the June 30, 2023 fiscal year, staff utilized the accounting system to better track grant revenues and expenditures by grant program. However, the breakdown of expenditures used on these spreadsheets did not always match the breakdown used when the expenditures were posted in the general ledger accounting system. Effect or Potential Effect: Expenditures could be duplicated, or eligible expenditures could be omitted from grant reimbursement requests. Recommendation: The coding of expenditures in the general ledger accounting system should reflect the amounts requested under each grant. Additionally, reconciliations should be performed regularly to ensure expenditures are not duplicated or eligible expenditures are not omitted from grant reimbursement requests. Responsible Official's Response: Processes have been put into place to make sure that variances do not occur. Any questions with allowable costs have been referenced in 2 CFR 200 subpart E used for a common procedure for all expenses. The executive director and office manager will review expenditures prior to the distribution of office expenses from among the funds, which will ensure accuracy before the request is made. This will also eliminate the number of entries which need to be adjusted in the expenses. Steps have been implemented since the finding last year to eliminate variances by the review of the Executive Director and Office Manager of expenditure requests, prior to the funding drawdowns.
2023-004 Schedule of Expenditures of Federal Awards (Repeat Partially Resolved Prior Year Audit Finding 2022-005; Originally Reported as Finding 2020-006) Criteria: The information in the Schedule of Expenditures of Federal Awards (SEFA) should be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Condition and Context: The grant expenditures on the SEFA were not reconciled to the general ledger accounting system or other records used to prepare the financial statements. Cause: Revenue accounts and internal funds by grant program have been created for each reimbursement grant program. However, grant receivables were not recorded and revenue accounts for each reimbursement grant program were not reconciled to the underlying expenditures in the accounting and other records used to prepare the financial statements and SEFA. Effect or Potential Effect: The SEFA could be materially misstated if grant expenditures reported on the SEFA are not reconciled to the underlying accounting and other records used to prepare the financial statements. Recommendation: Reimbursement grant revenue accounts should be reconciled to the underlying grant expenditures on the grant request and other reports on a timely basis. Responsible Official's Response: Frequent reconciliations, along with implementation of policy and procedures, has allowed data to be accurate in the accounting system while matching data information on government reports since the finding from prior year. The organizational staff has adequately added and maintained information in the accounting software as requested from previous finding on prior year, which should meet OMB requirements.
2023-003 Grant Expenditures (Repeat Prior Year Audit Finding 2022-004; Originally Reported as Finding 2020-005) Criteria: Expenditures used to support grant reimbursement requests should agree with amounts recorded in the general ledger accounting system. Condition and Context: In our testing, we noted that the total expenditures recorded in the general ledger accounting system by grant program did not agree in total to the spreadsheets used to support grant reimbursement requests. Cause: Staff use spreadsheets outside of the general ledger accounting system to track expenditures and make grant reimbursement requests. During the June 30, 2023 fiscal year, staff utilized the accounting system to better track grant revenues and expenditures by grant program. However, the breakdown of expenditures used on these spreadsheets did not always match the breakdown used when the expenditures were posted in the general ledger accounting system. Effect or Potential Effect: Expenditures could be duplicated, or eligible expenditures could be omitted from grant reimbursement requests. Recommendation: The coding of expenditures in the general ledger accounting system should reflect the amounts requested under each grant. Additionally, reconciliations should be performed regularly to ensure expenditures are not duplicated or eligible expenditures are not omitted from grant reimbursement requests. Responsible Official's Response: Processes have been put into place to make sure that variances do not occur. Any questions with allowable costs have been referenced in 2 CFR 200 subpart E used for a common procedure for all expenses. The executive director and office manager will review expenditures prior to the distribution of office expenses from among the funds, which will ensure accuracy before the request is made. This will also eliminate the number of entries which need to be adjusted in the expenses. Steps have been implemented since the finding last year to eliminate variances by the review of the Executive Director and Office Manager of expenditure requests, prior to the funding drawdowns.
2023-004 Schedule of Expenditures of Federal Awards (Repeat Partially Resolved Prior Year Audit Finding 2022-005; Originally Reported as Finding 2020-006) Criteria: The information in the Schedule of Expenditures of Federal Awards (SEFA) should be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Condition and Context: The grant expenditures on the SEFA were not reconciled to the general ledger accounting system or other records used to prepare the financial statements. Cause: Revenue accounts and internal funds by grant program have been created for each reimbursement grant program. However, grant receivables were not recorded and revenue accounts for each reimbursement grant program were not reconciled to the underlying expenditures in the accounting and other records used to prepare the financial statements and SEFA. Effect or Potential Effect: The SEFA could be materially misstated if grant expenditures reported on the SEFA are not reconciled to the underlying accounting and other records used to prepare the financial statements. Recommendation: Reimbursement grant revenue accounts should be reconciled to the underlying grant expenditures on the grant request and other reports on a timely basis. Responsible Official's Response: Frequent reconciliations, along with implementation of policy and procedures, has allowed data to be accurate in the accounting system while matching data information on government reports since the finding from prior year. The organizational staff has adequately added and maintained information in the accounting software as requested from previous finding on prior year, which should meet OMB requirements.