Federal agency: All agencies in the SEFA
Assistance Listing Number: See SEFA
Award Period: 01/01/2023 to 12/31/2023
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria or Specific Requirement:
2 CFR Section C: Subpart F Audit Requirements § 200.510 Financial statements Part (b) states: The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502 – Basis for determining Federal awards expended.
Condition:
Adjustments to the SEFA were necessary due to the internal controls not recognizing and correcting expenditures initially reported in the SEFA provided for audit. The SEFA as presented has been adjusted and is correct.
Cause:
The internal preparation and review processes did not identify the misstatement of the SEFA prepared for audit purposes.
Effect or potential effect:
If the SEFA is misstated related to the programs and expenditures incurred for the program. This could impact the scope of the audit and therefore the federal agencies’ reliance on the audit results.
In addition, inaccurate tracking of federal expenditures may prevent the Organization from identifying when an audit in accordance with Government Auditing Standards and Uniform Guidance is required.
Repeat Finding:
No
Auditor’s Recommendation:
We recommend the auditee prepare supporting documentation for the calculation of the SEFA programs and amounts. We also recommend that the supporting documentation is reviewed and agreed with the SEFA for completeness and accuracy.
Finally, we recommend that the Organization include fiscal training related to Uniform Guidance if federal programs continue to be a source of revenue.
Views of Responsible Officials and Planned Corrective Actions:
We agree that, due to data entry errors, the SEFA provided at the start of the single audit did not include the appropriate and applicable federal expenditures.
We will be more diligent in the preparation of the SEFA to help prevent the potential for inadvertently misrepresenting the total federal expenditures and avoid the necessity for adjustments to the SEFA in future audits. At the issuance of the reports, we have enhanced our internal controls and processes related to the preparation of the SEFA to prevent this situation in future years. Our goal is to eliminate any errors to ensure that all applicable federal expenditures are complete and accurate.
Federal agency: All agencies in the SEFA
Assistance Listing Number: See SEFA
Award Period: 01/01/2023 to 12/31/2023
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria or Specific Requirement:
2 CFR Section C: Subpart F Audit Requirements § 200.510 Financial statements Part (b) states: The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502 – Basis for determining Federal awards expended.
Condition:
Adjustments to the SEFA were necessary due to the internal controls not recognizing and correcting expenditures initially reported in the SEFA provided for audit. The SEFA as presented has been adjusted and is correct.
Cause:
The internal preparation and review processes did not identify the misstatement of the SEFA prepared for audit purposes.
Effect or potential effect:
If the SEFA is misstated related to the programs and expenditures incurred for the program. This could impact the scope of the audit and therefore the federal agencies’ reliance on the audit results.
In addition, inaccurate tracking of federal expenditures may prevent the Organization from identifying when an audit in accordance with Government Auditing Standards and Uniform Guidance is required.
Repeat Finding:
No
Auditor’s Recommendation:
We recommend the auditee prepare supporting documentation for the calculation of the SEFA programs and amounts. We also recommend that the supporting documentation is reviewed and agreed with the SEFA for completeness and accuracy.
Finally, we recommend that the Organization include fiscal training related to Uniform Guidance if federal programs continue to be a source of revenue.
Views of Responsible Officials and Planned Corrective Actions:
We agree that, due to data entry errors, the SEFA provided at the start of the single audit did not include the appropriate and applicable federal expenditures.
We will be more diligent in the preparation of the SEFA to help prevent the potential for inadvertently misrepresenting the total federal expenditures and avoid the necessity for adjustments to the SEFA in future audits. At the issuance of the reports, we have enhanced our internal controls and processes related to the preparation of the SEFA to prevent this situation in future years. Our goal is to eliminate any errors to ensure that all applicable federal expenditures are complete and accurate.
Federal agency: All agencies in the SEFA
Assistance Listing Number: See SEFA
Award Period: 01/01/2023 to 12/31/2023
Type of Finding: Significant Deficiency in Internal Control Over Compliance
Criteria or Specific Requirement:
The compliance requirements for Federal Assistance Number 93.558 – Temporary Assistance for Needy Families (TANF) State Programs includes a Period of Performance element. The compliance requirement related to period of performance is that a non-federal entity may charge only allowable costs incurred during the approved budget period (also identified as the grant period) of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)).
Condition:
Allocations of indirect costs are performed once during the year-end closing process based on time study data for the entire year, and when program attendance data for programs that are ran for various increments throughout the year is available. The TANF grant period that was tested as a major program was December 2022 – August 2023. As the grant period ended in September, no costs incurred after that date should be considered major program expenditures.
Questioned Costs:
Indeterminable. The questioned costs could be considered those indirect costs considered TANF expenditures that were incurred after August 2023. In addition, because the program attendance is used to allocate costs between programs, program attendance after August 2023 may be inappropriate to be considered when allocating those indirect costs to specific programs.
Context:
Indirect cost allocations are performed once during the year-end closing process by the auditee. Time studies are performed to allocate indirect costs between supporting and program functions. The indirect costs allocated to the program functions are then allocated between individual programs, including federally funded programs, based on the number of participant hours in each program. The time study and program hours used to allocate indirect costs are based on the entire year and not just the major program grant period. In addition, indirect costs that are allocated are incurred during the entire year and not just the major program grant period.
Cause:
Time and program participation data used to allocate costs are not consistent with the grant period. In addition, the costs that are allocated are not consistent with the grant period.
Effect:
The single annual allocation of costs means that costs incurred outside the major program grant/budget period are being allocated to the major program. In addition, allocation base data from outside the grant/budget period is being used as a base for the indirect cost allocation.
Repeat Finding:
No
Auditor’s Recommendation:
We recommend the auditee perform indirect cost allocations so that the costs and allocation base align with the grant/budget period. Performing the allocation of indirect costs annually may not create an equitable allocation at the individual program level.
Views of Responsible Officials and Planned Corrective Actions:
We agree that the allocation being performed once annually does not create the most equitable allocation of costs between our individual programs.
We will perform our indirect cost allocations more periodically during the course of the fiscal year to ensure that more appropriate times studies and applicable participant hours are being utilized to limit the potential of allocating unrelated indirect costs from the year to individual programs, including the federally funded programs.
Federal agency: All agencies in the SEFA
Assistance Listing Number: See SEFA
Award Period: 01/01/2023 to 12/31/2023
Type of Finding: Significant Deficiency in Internal Control Over Compliance
Criteria or Specific Requirement:
The compliance requirements for Federal Assistance Number 93.558 – Temporary Assistance for Needy Families (TANF) State Programs includes a Period of Performance element. The compliance requirement related to period of performance is that a non-federal entity may charge only allowable costs incurred during the approved budget period (also identified as the grant period) of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)).
Condition:
Allocations of indirect costs are performed once during the year-end closing process based on time study data for the entire year, and when program attendance data for programs that are ran for various increments throughout the year is available. The TANF grant period that was tested as a major program was December 2022 – August 2023. As the grant period ended in September, no costs incurred after that date should be considered major program expenditures.
Questioned Costs:
Indeterminable. The questioned costs could be considered those indirect costs considered TANF expenditures that were incurred after August 2023. In addition, because the program attendance is used to allocate costs between programs, program attendance after August 2023 may be inappropriate to be considered when allocating those indirect costs to specific programs.
Context:
Indirect cost allocations are performed once during the year-end closing process by the auditee. Time studies are performed to allocate indirect costs between supporting and program functions. The indirect costs allocated to the program functions are then allocated between individual programs, including federally funded programs, based on the number of participant hours in each program. The time study and program hours used to allocate indirect costs are based on the entire year and not just the major program grant period. In addition, indirect costs that are allocated are incurred during the entire year and not just the major program grant period.
Cause:
Time and program participation data used to allocate costs are not consistent with the grant period. In addition, the costs that are allocated are not consistent with the grant period.
Effect:
The single annual allocation of costs means that costs incurred outside the major program grant/budget period are being allocated to the major program. In addition, allocation base data from outside the grant/budget period is being used as a base for the indirect cost allocation.
Repeat Finding:
No
Auditor’s Recommendation:
We recommend the auditee perform indirect cost allocations so that the costs and allocation base align with the grant/budget period. Performing the allocation of indirect costs annually may not create an equitable allocation at the individual program level.
Views of Responsible Officials and Planned Corrective Actions:
We agree that the allocation being performed once annually does not create the most equitable allocation of costs between our individual programs.
We will perform our indirect cost allocations more periodically during the course of the fiscal year to ensure that more appropriate times studies and applicable participant hours are being utilized to limit the potential of allocating unrelated indirect costs from the year to individual programs, including the federally funded programs.
Federal agency: All agencies in the SEFA
Assistance Listing Number: See SEFA
Award Period: 01/01/2023 to 12/31/2023
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria or Specific Requirement:
2 CFR Section C: Subpart F Audit Requirements § 200.510 Financial statements Part (b) states: The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502 – Basis for determining Federal awards expended.
Condition:
Adjustments to the SEFA were necessary due to the internal controls not recognizing and correcting expenditures initially reported in the SEFA provided for audit. The SEFA as presented has been adjusted and is correct.
Cause:
The internal preparation and review processes did not identify the misstatement of the SEFA prepared for audit purposes.
Effect or potential effect:
If the SEFA is misstated related to the programs and expenditures incurred for the program. This could impact the scope of the audit and therefore the federal agencies’ reliance on the audit results.
In addition, inaccurate tracking of federal expenditures may prevent the Organization from identifying when an audit in accordance with Government Auditing Standards and Uniform Guidance is required.
Repeat Finding:
No
Auditor’s Recommendation:
We recommend the auditee prepare supporting documentation for the calculation of the SEFA programs and amounts. We also recommend that the supporting documentation is reviewed and agreed with the SEFA for completeness and accuracy.
Finally, we recommend that the Organization include fiscal training related to Uniform Guidance if federal programs continue to be a source of revenue.
Views of Responsible Officials and Planned Corrective Actions:
We agree that, due to data entry errors, the SEFA provided at the start of the single audit did not include the appropriate and applicable federal expenditures.
We will be more diligent in the preparation of the SEFA to help prevent the potential for inadvertently misrepresenting the total federal expenditures and avoid the necessity for adjustments to the SEFA in future audits. At the issuance of the reports, we have enhanced our internal controls and processes related to the preparation of the SEFA to prevent this situation in future years. Our goal is to eliminate any errors to ensure that all applicable federal expenditures are complete and accurate.
Federal agency: All agencies in the SEFA
Assistance Listing Number: See SEFA
Award Period: 01/01/2023 to 12/31/2023
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria or Specific Requirement:
2 CFR Section C: Subpart F Audit Requirements § 200.510 Financial statements Part (b) states: The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502 – Basis for determining Federal awards expended.
Condition:
Adjustments to the SEFA were necessary due to the internal controls not recognizing and correcting expenditures initially reported in the SEFA provided for audit. The SEFA as presented has been adjusted and is correct.
Cause:
The internal preparation and review processes did not identify the misstatement of the SEFA prepared for audit purposes.
Effect or potential effect:
If the SEFA is misstated related to the programs and expenditures incurred for the program. This could impact the scope of the audit and therefore the federal agencies’ reliance on the audit results.
In addition, inaccurate tracking of federal expenditures may prevent the Organization from identifying when an audit in accordance with Government Auditing Standards and Uniform Guidance is required.
Repeat Finding:
No
Auditor’s Recommendation:
We recommend the auditee prepare supporting documentation for the calculation of the SEFA programs and amounts. We also recommend that the supporting documentation is reviewed and agreed with the SEFA for completeness and accuracy.
Finally, we recommend that the Organization include fiscal training related to Uniform Guidance if federal programs continue to be a source of revenue.
Views of Responsible Officials and Planned Corrective Actions:
We agree that, due to data entry errors, the SEFA provided at the start of the single audit did not include the appropriate and applicable federal expenditures.
We will be more diligent in the preparation of the SEFA to help prevent the potential for inadvertently misrepresenting the total federal expenditures and avoid the necessity for adjustments to the SEFA in future audits. At the issuance of the reports, we have enhanced our internal controls and processes related to the preparation of the SEFA to prevent this situation in future years. Our goal is to eliminate any errors to ensure that all applicable federal expenditures are complete and accurate.
Federal agency: All agencies in the SEFA
Assistance Listing Number: See SEFA
Award Period: 01/01/2023 to 12/31/2023
Type of Finding: Significant Deficiency in Internal Control Over Compliance
Criteria or Specific Requirement:
The compliance requirements for Federal Assistance Number 93.558 – Temporary Assistance for Needy Families (TANF) State Programs includes a Period of Performance element. The compliance requirement related to period of performance is that a non-federal entity may charge only allowable costs incurred during the approved budget period (also identified as the grant period) of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)).
Condition:
Allocations of indirect costs are performed once during the year-end closing process based on time study data for the entire year, and when program attendance data for programs that are ran for various increments throughout the year is available. The TANF grant period that was tested as a major program was December 2022 – August 2023. As the grant period ended in September, no costs incurred after that date should be considered major program expenditures.
Questioned Costs:
Indeterminable. The questioned costs could be considered those indirect costs considered TANF expenditures that were incurred after August 2023. In addition, because the program attendance is used to allocate costs between programs, program attendance after August 2023 may be inappropriate to be considered when allocating those indirect costs to specific programs.
Context:
Indirect cost allocations are performed once during the year-end closing process by the auditee. Time studies are performed to allocate indirect costs between supporting and program functions. The indirect costs allocated to the program functions are then allocated between individual programs, including federally funded programs, based on the number of participant hours in each program. The time study and program hours used to allocate indirect costs are based on the entire year and not just the major program grant period. In addition, indirect costs that are allocated are incurred during the entire year and not just the major program grant period.
Cause:
Time and program participation data used to allocate costs are not consistent with the grant period. In addition, the costs that are allocated are not consistent with the grant period.
Effect:
The single annual allocation of costs means that costs incurred outside the major program grant/budget period are being allocated to the major program. In addition, allocation base data from outside the grant/budget period is being used as a base for the indirect cost allocation.
Repeat Finding:
No
Auditor’s Recommendation:
We recommend the auditee perform indirect cost allocations so that the costs and allocation base align with the grant/budget period. Performing the allocation of indirect costs annually may not create an equitable allocation at the individual program level.
Views of Responsible Officials and Planned Corrective Actions:
We agree that the allocation being performed once annually does not create the most equitable allocation of costs between our individual programs.
We will perform our indirect cost allocations more periodically during the course of the fiscal year to ensure that more appropriate times studies and applicable participant hours are being utilized to limit the potential of allocating unrelated indirect costs from the year to individual programs, including the federally funded programs.
Federal agency: All agencies in the SEFA
Assistance Listing Number: See SEFA
Award Period: 01/01/2023 to 12/31/2023
Type of Finding: Significant Deficiency in Internal Control Over Compliance
Criteria or Specific Requirement:
The compliance requirements for Federal Assistance Number 93.558 – Temporary Assistance for Needy Families (TANF) State Programs includes a Period of Performance element. The compliance requirement related to period of performance is that a non-federal entity may charge only allowable costs incurred during the approved budget period (also identified as the grant period) of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)).
Condition:
Allocations of indirect costs are performed once during the year-end closing process based on time study data for the entire year, and when program attendance data for programs that are ran for various increments throughout the year is available. The TANF grant period that was tested as a major program was December 2022 – August 2023. As the grant period ended in September, no costs incurred after that date should be considered major program expenditures.
Questioned Costs:
Indeterminable. The questioned costs could be considered those indirect costs considered TANF expenditures that were incurred after August 2023. In addition, because the program attendance is used to allocate costs between programs, program attendance after August 2023 may be inappropriate to be considered when allocating those indirect costs to specific programs.
Context:
Indirect cost allocations are performed once during the year-end closing process by the auditee. Time studies are performed to allocate indirect costs between supporting and program functions. The indirect costs allocated to the program functions are then allocated between individual programs, including federally funded programs, based on the number of participant hours in each program. The time study and program hours used to allocate indirect costs are based on the entire year and not just the major program grant period. In addition, indirect costs that are allocated are incurred during the entire year and not just the major program grant period.
Cause:
Time and program participation data used to allocate costs are not consistent with the grant period. In addition, the costs that are allocated are not consistent with the grant period.
Effect:
The single annual allocation of costs means that costs incurred outside the major program grant/budget period are being allocated to the major program. In addition, allocation base data from outside the grant/budget period is being used as a base for the indirect cost allocation.
Repeat Finding:
No
Auditor’s Recommendation:
We recommend the auditee perform indirect cost allocations so that the costs and allocation base align with the grant/budget period. Performing the allocation of indirect costs annually may not create an equitable allocation at the individual program level.
Views of Responsible Officials and Planned Corrective Actions:
We agree that the allocation being performed once annually does not create the most equitable allocation of costs between our individual programs.
We will perform our indirect cost allocations more periodically during the course of the fiscal year to ensure that more appropriate times studies and applicable participant hours are being utilized to limit the potential of allocating unrelated indirect costs from the year to individual programs, including the federally funded programs.