Finding 2022-001 Year-End Close Process/Account Reconciliations Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management system of each non-Federal entity must provide for effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: The initial financial information provided for the audit was not accurate, resulting in delays in the audit process. In addition, we noted that certain schedules/reconciliations were not properly prepared in advance of the audit. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If each account is not reconciled regularly, it increases the risk of loss of Federal funds. Questioned Costs: None Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-002: Support for Schedule of Expenditures of Federal Awards in the Accounting System Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the auditee must be able to identify all Federal awards received and expenses and the Federal programs under which they were received. Condition: We noted that in the transition from the previous accounting system, certain expenditures had not been properly classified in the new system. As a result, although detailed invoices were available to support the amounts reported on the SEFA, the expenses had not been accurately classified by award within the general ledger. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information within the accounting system, there is an increased potential for inaccurate reporting. Questioned Costs: Indeterminable Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-003: Suspension and Debarment Federal Programs: CFDA 14.235 Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure the organization is not conducting business with excluded parties (as defined by the U.S. Government); the screening must be documented in writing. Condition: During the fiscal year, NEW did not consistently perform the screening process for its potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that were paid with Federal funds. Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but did not adhere to its policy and retain documentation of screenings, during the fiscal year. Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently provided to parties deemed to be suspended or disbarred by the United States Government. Questioned Costs: Indeterminable Context: Payments were made during the fiscal year without performing the proper screening process. Our audit work in this area consisted of internal control testwork over a random sample of expenditures, as well as substantive testwork over transactions above a defined threshold from select expense accounts that were charged to the Federal program. We consider our samples to be representative of the respective populations, and thus, are statistically valid samples. The issue is deemed to be systemic. Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001 Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties (as noted above) are included, and educate its employees on the procedures necessary to ensure full compliance with this requirement. We also recommend NEW document each of these screenings and retain them in the respective files, which should be completed prior to engaging in relationships with these parties. For ongoing relationships, NEW should consider performing screenings on an annual basis (and document them) to ensure continuous compliance in the event the suspension and debarment status of any of these parties changes. Lastly, we recommend NEW perform retrospective screenings on these parties it made payments to during the fiscal year.
Finding 2022-001 Year-End Close Process/Account Reconciliations Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management system of each non-Federal entity must provide for effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: The initial financial information provided for the audit was not accurate, resulting in delays in the audit process. In addition, we noted that certain schedules/reconciliations were not properly prepared in advance of the audit. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If each account is not reconciled regularly, it increases the risk of loss of Federal funds. Questioned Costs: None Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-002: Support for Schedule of Expenditures of Federal Awards in the Accounting System Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the auditee must be able to identify all Federal awards received and expenses and the Federal programs under which they were received. Condition: We noted that in the transition from the previous accounting system, certain expenditures had not been properly classified in the new system. As a result, although detailed invoices were available to support the amounts reported on the SEFA, the expenses had not been accurately classified by award within the general ledger. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information within the accounting system, there is an increased potential for inaccurate reporting. Questioned Costs: Indeterminable Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-003: Suspension and Debarment Federal Programs: CFDA 14.235 Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure the organization is not conducting business with excluded parties (as defined by the U.S. Government); the screening must be documented in writing. Condition: During the fiscal year, NEW did not consistently perform the screening process for its potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that were paid with Federal funds. Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but did not adhere to its policy and retain documentation of screenings, during the fiscal year. Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently provided to parties deemed to be suspended or disbarred by the United States Government. Questioned Costs: Indeterminable Context: Payments were made during the fiscal year without performing the proper screening process. Our audit work in this area consisted of internal control testwork over a random sample of expenditures, as well as substantive testwork over transactions above a defined threshold from select expense accounts that were charged to the Federal program. We consider our samples to be representative of the respective populations, and thus, are statistically valid samples. The issue is deemed to be systemic. Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001 Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties (as noted above) are included, and educate its employees on the procedures necessary to ensure full compliance with this requirement. We also recommend NEW document each of these screenings and retain them in the respective files, which should be completed prior to engaging in relationships with these parties. For ongoing relationships, NEW should consider performing screenings on an annual basis (and document them) to ensure continuous compliance in the event the suspension and debarment status of any of these parties changes. Lastly, we recommend NEW perform retrospective screenings on these parties it made payments to during the fiscal year.
Finding 2022-001 Year-End Close Process/Account Reconciliations Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management system of each non-Federal entity must provide for effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: The initial financial information provided for the audit was not accurate, resulting in delays in the audit process. In addition, we noted that certain schedules/reconciliations were not properly prepared in advance of the audit. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If each account is not reconciled regularly, it increases the risk of loss of Federal funds. Questioned Costs: None Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-002: Support for Schedule of Expenditures of Federal Awards in the Accounting System Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the auditee must be able to identify all Federal awards received and expenses and the Federal programs under which they were received. Condition: We noted that in the transition from the previous accounting system, certain expenditures had not been properly classified in the new system. As a result, although detailed invoices were available to support the amounts reported on the SEFA, the expenses had not been accurately classified by award within the general ledger. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information within the accounting system, there is an increased potential for inaccurate reporting. Questioned Costs: Indeterminable Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-003: Suspension and Debarment Federal Programs: CFDA 14.235 Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure the organization is not conducting business with excluded parties (as defined by the U.S. Government); the screening must be documented in writing. Condition: During the fiscal year, NEW did not consistently perform the screening process for its potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that were paid with Federal funds. Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but did not adhere to its policy and retain documentation of screenings, during the fiscal year. Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently provided to parties deemed to be suspended or disbarred by the United States Government. Questioned Costs: Indeterminable Context: Payments were made during the fiscal year without performing the proper screening process. Our audit work in this area consisted of internal control testwork over a random sample of expenditures, as well as substantive testwork over transactions above a defined threshold from select expense accounts that were charged to the Federal program. We consider our samples to be representative of the respective populations, and thus, are statistically valid samples. The issue is deemed to be systemic. Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001 Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties (as noted above) are included, and educate its employees on the procedures necessary to ensure full compliance with this requirement. We also recommend NEW document each of these screenings and retain them in the respective files, which should be completed prior to engaging in relationships with these parties. For ongoing relationships, NEW should consider performing screenings on an annual basis (and document them) to ensure continuous compliance in the event the suspension and debarment status of any of these parties changes. Lastly, we recommend NEW perform retrospective screenings on these parties it made payments to during the fiscal year.
Finding 2022-001 Year-End Close Process/Account Reconciliations Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management system of each non-Federal entity must provide for effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: The initial financial information provided for the audit was not accurate, resulting in delays in the audit process. In addition, we noted that certain schedules/reconciliations were not properly prepared in advance of the audit. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If each account is not reconciled regularly, it increases the risk of loss of Federal funds. Questioned Costs: None Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-002: Support for Schedule of Expenditures of Federal Awards in the Accounting System Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the auditee must be able to identify all Federal awards received and expenses and the Federal programs under which they were received. Condition: We noted that in the transition from the previous accounting system, certain expenditures had not been properly classified in the new system. As a result, although detailed invoices were available to support the amounts reported on the SEFA, the expenses had not been accurately classified by award within the general ledger. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information within the accounting system, there is an increased potential for inaccurate reporting. Questioned Costs: Indeterminable Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-003: Suspension and Debarment Federal Programs: CFDA 14.235 Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure the organization is not conducting business with excluded parties (as defined by the U.S. Government); the screening must be documented in writing. Condition: During the fiscal year, NEW did not consistently perform the screening process for its potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that were paid with Federal funds. Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but did not adhere to its policy and retain documentation of screenings, during the fiscal year. Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently provided to parties deemed to be suspended or disbarred by the United States Government. Questioned Costs: Indeterminable Context: Payments were made during the fiscal year without performing the proper screening process. Our audit work in this area consisted of internal control testwork over a random sample of expenditures, as well as substantive testwork over transactions above a defined threshold from select expense accounts that were charged to the Federal program. We consider our samples to be representative of the respective populations, and thus, are statistically valid samples. The issue is deemed to be systemic. Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001 Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties (as noted above) are included, and educate its employees on the procedures necessary to ensure full compliance with this requirement. We also recommend NEW document each of these screenings and retain them in the respective files, which should be completed prior to engaging in relationships with these parties. For ongoing relationships, NEW should consider performing screenings on an annual basis (and document them) to ensure continuous compliance in the event the suspension and debarment status of any of these parties changes. Lastly, we recommend NEW perform retrospective screenings on these parties it made payments to during the fiscal year.
Finding 2022-001 Year-End Close Process/Account Reconciliations Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management system of each non-Federal entity must provide for effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: The initial financial information provided for the audit was not accurate, resulting in delays in the audit process. In addition, we noted that certain schedules/reconciliations were not properly prepared in advance of the audit. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If each account is not reconciled regularly, it increases the risk of loss of Federal funds. Questioned Costs: None Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-002: Support for Schedule of Expenditures of Federal Awards in the Accounting System Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the auditee must be able to identify all Federal awards received and expenses and the Federal programs under which they were received. Condition: We noted that in the transition from the previous accounting system, certain expenditures had not been properly classified in the new system. As a result, although detailed invoices were available to support the amounts reported on the SEFA, the expenses had not been accurately classified by award within the general ledger. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information within the accounting system, there is an increased potential for inaccurate reporting. Questioned Costs: Indeterminable Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-003: Suspension and Debarment Federal Programs: CFDA 14.235 Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure the organization is not conducting business with excluded parties (as defined by the U.S. Government); the screening must be documented in writing. Condition: During the fiscal year, NEW did not consistently perform the screening process for its potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that were paid with Federal funds. Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but did not adhere to its policy and retain documentation of screenings, during the fiscal year. Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently provided to parties deemed to be suspended or disbarred by the United States Government. Questioned Costs: Indeterminable Context: Payments were made during the fiscal year without performing the proper screening process. Our audit work in this area consisted of internal control testwork over a random sample of expenditures, as well as substantive testwork over transactions above a defined threshold from select expense accounts that were charged to the Federal program. We consider our samples to be representative of the respective populations, and thus, are statistically valid samples. The issue is deemed to be systemic. Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001 Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties (as noted above) are included, and educate its employees on the procedures necessary to ensure full compliance with this requirement. We also recommend NEW document each of these screenings and retain them in the respective files, which should be completed prior to engaging in relationships with these parties. For ongoing relationships, NEW should consider performing screenings on an annual basis (and document them) to ensure continuous compliance in the event the suspension and debarment status of any of these parties changes. Lastly, we recommend NEW perform retrospective screenings on these parties it made payments to during the fiscal year.
Finding 2022-001 Year-End Close Process/Account Reconciliations Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management system of each non-Federal entity must provide for effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: The initial financial information provided for the audit was not accurate, resulting in delays in the audit process. In addition, we noted that certain schedules/reconciliations were not properly prepared in advance of the audit. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If each account is not reconciled regularly, it increases the risk of loss of Federal funds. Questioned Costs: None Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-002: Support for Schedule of Expenditures of Federal Awards in the Accounting System Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the auditee must be able to identify all Federal awards received and expenses and the Federal programs under which they were received. Condition: We noted that in the transition from the previous accounting system, certain expenditures had not been properly classified in the new system. As a result, although detailed invoices were available to support the amounts reported on the SEFA, the expenses had not been accurately classified by award within the general ledger. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information within the accounting system, there is an increased potential for inaccurate reporting. Questioned Costs: Indeterminable Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-003: Suspension and Debarment Federal Programs: CFDA 14.235 Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure the organization is not conducting business with excluded parties (as defined by the U.S. Government); the screening must be documented in writing. Condition: During the fiscal year, NEW did not consistently perform the screening process for its potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that were paid with Federal funds. Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but did not adhere to its policy and retain documentation of screenings, during the fiscal year. Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently provided to parties deemed to be suspended or disbarred by the United States Government. Questioned Costs: Indeterminable Context: Payments were made during the fiscal year without performing the proper screening process. Our audit work in this area consisted of internal control testwork over a random sample of expenditures, as well as substantive testwork over transactions above a defined threshold from select expense accounts that were charged to the Federal program. We consider our samples to be representative of the respective populations, and thus, are statistically valid samples. The issue is deemed to be systemic. Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001 Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties (as noted above) are included, and educate its employees on the procedures necessary to ensure full compliance with this requirement. We also recommend NEW document each of these screenings and retain them in the respective files, which should be completed prior to engaging in relationships with these parties. For ongoing relationships, NEW should consider performing screenings on an annual basis (and document them) to ensure continuous compliance in the event the suspension and debarment status of any of these parties changes. Lastly, we recommend NEW perform retrospective screenings on these parties it made payments to during the fiscal year.
Finding 2022-001 Year-End Close Process/Account Reconciliations Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management system of each non-Federal entity must provide for effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: The initial financial information provided for the audit was not accurate, resulting in delays in the audit process. In addition, we noted that certain schedules/reconciliations were not properly prepared in advance of the audit. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If each account is not reconciled regularly, it increases the risk of loss of Federal funds. Questioned Costs: None Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-002: Support for Schedule of Expenditures of Federal Awards in the Accounting System Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the auditee must be able to identify all Federal awards received and expenses and the Federal programs under which they were received. Condition: We noted that in the transition from the previous accounting system, certain expenditures had not been properly classified in the new system. As a result, although detailed invoices were available to support the amounts reported on the SEFA, the expenses had not been accurately classified by award within the general ledger. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information within the accounting system, there is an increased potential for inaccurate reporting. Questioned Costs: Indeterminable Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-003: Suspension and Debarment Federal Programs: CFDA 14.235 Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure the organization is not conducting business with excluded parties (as defined by the U.S. Government); the screening must be documented in writing. Condition: During the fiscal year, NEW did not consistently perform the screening process for its potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that were paid with Federal funds. Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but did not adhere to its policy and retain documentation of screenings, during the fiscal year. Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently provided to parties deemed to be suspended or disbarred by the United States Government. Questioned Costs: Indeterminable Context: Payments were made during the fiscal year without performing the proper screening process. Our audit work in this area consisted of internal control testwork over a random sample of expenditures, as well as substantive testwork over transactions above a defined threshold from select expense accounts that were charged to the Federal program. We consider our samples to be representative of the respective populations, and thus, are statistically valid samples. The issue is deemed to be systemic. Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001 Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties (as noted above) are included, and educate its employees on the procedures necessary to ensure full compliance with this requirement. We also recommend NEW document each of these screenings and retain them in the respective files, which should be completed prior to engaging in relationships with these parties. For ongoing relationships, NEW should consider performing screenings on an annual basis (and document them) to ensure continuous compliance in the event the suspension and debarment status of any of these parties changes. Lastly, we recommend NEW perform retrospective screenings on these parties it made payments to during the fiscal year.
Finding 2022-001 Year-End Close Process/Account Reconciliations Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management system of each non-Federal entity must provide for effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: The initial financial information provided for the audit was not accurate, resulting in delays in the audit process. In addition, we noted that certain schedules/reconciliations were not properly prepared in advance of the audit. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If each account is not reconciled regularly, it increases the risk of loss of Federal funds. Questioned Costs: None Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-002: Support for Schedule of Expenditures of Federal Awards in the Accounting System Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the auditee must be able to identify all Federal awards received and expenses and the Federal programs under which they were received. Condition: We noted that in the transition from the previous accounting system, certain expenditures had not been properly classified in the new system. As a result, although detailed invoices were available to support the amounts reported on the SEFA, the expenses had not been accurately classified by award within the general ledger. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information within the accounting system, there is an increased potential for inaccurate reporting. Questioned Costs: Indeterminable Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.
Finding 2022-003: Suspension and Debarment Federal Programs: CFDA 14.235 Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure the organization is not conducting business with excluded parties (as defined by the U.S. Government); the screening must be documented in writing. Condition: During the fiscal year, NEW did not consistently perform the screening process for its potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that were paid with Federal funds. Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but did not adhere to its policy and retain documentation of screenings, during the fiscal year. Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently provided to parties deemed to be suspended or disbarred by the United States Government. Questioned Costs: Indeterminable Context: Payments were made during the fiscal year without performing the proper screening process. Our audit work in this area consisted of internal control testwork over a random sample of expenditures, as well as substantive testwork over transactions above a defined threshold from select expense accounts that were charged to the Federal program. We consider our samples to be representative of the respective populations, and thus, are statistically valid samples. The issue is deemed to be systemic. Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001 Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties (as noted above) are included, and educate its employees on the procedures necessary to ensure full compliance with this requirement. We also recommend NEW document each of these screenings and retain them in the respective files, which should be completed prior to engaging in relationships with these parties. For ongoing relationships, NEW should consider performing screenings on an annual basis (and document them) to ensure continuous compliance in the event the suspension and debarment status of any of these parties changes. Lastly, we recommend NEW perform retrospective screenings on these parties it made payments to during the fiscal year.