Finding Number 2024-001
Assistance Listing # 21.027 - Coronavirus State and Local Fiscal Recovery Funds
Allowable Activities and Costs
Material Weakness in Internal Control Over Financial Reporting and Compliance
Immaterial Noncompliance
Criteria: Federal regulations 2 CFR Part 200, §200.403(g) require allowable costs be adequately
documented. Condition: The Organization did not retain general ledger supporting detail of the costs directly coded
to the federal award program and requested for reimbursement. Further, the Organization does not
allocate administrative costs directly within the general ledger.
Cause: A breakdown in procedures, partially attributable to the federal award program being new
during the year, led to expenses being coded to the federal award program within the general ledger
that were not submitted for reimbursement. In some cases, expense coding was changed after
reimbursement requests were submitted, thereby effectively reclassifying expenses into the federal
award program within the general ledger, or out of the federal award program. Additionally, the
Organization does not journalize the allocation of administrative costs to specific federal award
programs within the general ledger.
Effect: As a result of this condition, the Organization's general ledger does not reconcile to the total
expenses requested for reimbursement for the federal award program. The general ledger supports
expenses of approximately $13,000 less than the reimbursements received, because it excludes the
administrative costs allocation. Administrative costs claimed for reimbursement approximated
$15,000, and when combined with expenses directly coded to the federal award program, total
expenses exceed the reimbursements received, therefore, there are no questioned costs.
Questioned Costs: None.
Recommendation: We recommend management develop procedures whereby administrative
allocations are journalized monthly to each applicable program. Upon submitting reimbursement
requests, the Organization should retain documentation for each federal award program that supports
the costs claimed for reimbursement.
Management's Response: The Organization acknowledges the finding and agrees with the auditors'
recommendations. We recognize the importance of maintaining accurate documentation and financial
controls to ensure compliance with federal regulations. To address the finding, the Organization will
implement the following corrective actions:
1) Journalizing administrative allocations - effective March 31, the Organization will implement a
procedure to allocate administrative costs to each applicable federal award program through
monthly journal entries within the general ledger.
2) Improved documentation retention - the Organization will establish a process to retain
supporting documentation for all costs submitted for reimbursement, ensuring alignment between
the general ledger and reimbursement requests.
3) Internal controls for expense classification - the Organization will implement additional controls
to prevent expenses from being reclassified within the general ledger after reimbursement requests
have been submitted. Any necessary adjustments will be documented with a clear audit trail.
These corrective actions will be fully implemented by March 31, 2025, will include and cover all such
costs from the start of the fiscal year which began October 1, 2024, and management will monitor
compliance to ensure ongoing adherence to these procedures.
Responsible Party for Corrective Action: Bryce Hundley, Director of Finance
Anticipated Completion Date: February 2025
Finding Number 2024-001
Assistance Listing # 21.027 - Coronavirus State and Local Fiscal Recovery Funds
Allowable Activities and Costs
Material Weakness in Internal Control Over Financial Reporting and Compliance
Immaterial Noncompliance
Criteria: Federal regulations 2 CFR Part 200, §200.403(g) require allowable costs be adequately
documented. Condition: The Organization did not retain general ledger supporting detail of the costs directly coded
to the federal award program and requested for reimbursement. Further, the Organization does not
allocate administrative costs directly within the general ledger.
Cause: A breakdown in procedures, partially attributable to the federal award program being new
during the year, led to expenses being coded to the federal award program within the general ledger
that were not submitted for reimbursement. In some cases, expense coding was changed after
reimbursement requests were submitted, thereby effectively reclassifying expenses into the federal
award program within the general ledger, or out of the federal award program. Additionally, the
Organization does not journalize the allocation of administrative costs to specific federal award
programs within the general ledger.
Effect: As a result of this condition, the Organization's general ledger does not reconcile to the total
expenses requested for reimbursement for the federal award program. The general ledger supports
expenses of approximately $13,000 less than the reimbursements received, because it excludes the
administrative costs allocation. Administrative costs claimed for reimbursement approximated
$15,000, and when combined with expenses directly coded to the federal award program, total
expenses exceed the reimbursements received, therefore, there are no questioned costs.
Questioned Costs: None.
Recommendation: We recommend management develop procedures whereby administrative
allocations are journalized monthly to each applicable program. Upon submitting reimbursement
requests, the Organization should retain documentation for each federal award program that supports
the costs claimed for reimbursement.
Management's Response: The Organization acknowledges the finding and agrees with the auditors'
recommendations. We recognize the importance of maintaining accurate documentation and financial
controls to ensure compliance with federal regulations. To address the finding, the Organization will
implement the following corrective actions:
1) Journalizing administrative allocations - effective March 31, the Organization will implement a
procedure to allocate administrative costs to each applicable federal award program through
monthly journal entries within the general ledger.
2) Improved documentation retention - the Organization will establish a process to retain
supporting documentation for all costs submitted for reimbursement, ensuring alignment between
the general ledger and reimbursement requests.
3) Internal controls for expense classification - the Organization will implement additional controls
to prevent expenses from being reclassified within the general ledger after reimbursement requests
have been submitted. Any necessary adjustments will be documented with a clear audit trail.
These corrective actions will be fully implemented by March 31, 2025, will include and cover all such
costs from the start of the fiscal year which began October 1, 2024, and management will monitor
compliance to ensure ongoing adherence to these procedures.
Responsible Party for Corrective Action: Bryce Hundley, Director of Finance
Anticipated Completion Date: February 2025
Finding Number 2024-001
Assistance Listing # 21.027 - Coronavirus State and Local Fiscal Recovery Funds
Allowable Activities and Costs
Material Weakness in Internal Control Over Financial Reporting and Compliance
Immaterial Noncompliance
Criteria: Federal regulations 2 CFR Part 200, §200.403(g) require allowable costs be adequately
documented. Condition: The Organization did not retain general ledger supporting detail of the costs directly coded
to the federal award program and requested for reimbursement. Further, the Organization does not
allocate administrative costs directly within the general ledger.
Cause: A breakdown in procedures, partially attributable to the federal award program being new
during the year, led to expenses being coded to the federal award program within the general ledger
that were not submitted for reimbursement. In some cases, expense coding was changed after
reimbursement requests were submitted, thereby effectively reclassifying expenses into the federal
award program within the general ledger, or out of the federal award program. Additionally, the
Organization does not journalize the allocation of administrative costs to specific federal award
programs within the general ledger.
Effect: As a result of this condition, the Organization's general ledger does not reconcile to the total
expenses requested for reimbursement for the federal award program. The general ledger supports
expenses of approximately $13,000 less than the reimbursements received, because it excludes the
administrative costs allocation. Administrative costs claimed for reimbursement approximated
$15,000, and when combined with expenses directly coded to the federal award program, total
expenses exceed the reimbursements received, therefore, there are no questioned costs.
Questioned Costs: None.
Recommendation: We recommend management develop procedures whereby administrative
allocations are journalized monthly to each applicable program. Upon submitting reimbursement
requests, the Organization should retain documentation for each federal award program that supports
the costs claimed for reimbursement.
Management's Response: The Organization acknowledges the finding and agrees with the auditors'
recommendations. We recognize the importance of maintaining accurate documentation and financial
controls to ensure compliance with federal regulations. To address the finding, the Organization will
implement the following corrective actions:
1) Journalizing administrative allocations - effective March 31, the Organization will implement a
procedure to allocate administrative costs to each applicable federal award program through
monthly journal entries within the general ledger.
2) Improved documentation retention - the Organization will establish a process to retain
supporting documentation for all costs submitted for reimbursement, ensuring alignment between
the general ledger and reimbursement requests.
3) Internal controls for expense classification - the Organization will implement additional controls
to prevent expenses from being reclassified within the general ledger after reimbursement requests
have been submitted. Any necessary adjustments will be documented with a clear audit trail.
These corrective actions will be fully implemented by March 31, 2025, will include and cover all such
costs from the start of the fiscal year which began October 1, 2024, and management will monitor
compliance to ensure ongoing adherence to these procedures.
Responsible Party for Corrective Action: Bryce Hundley, Director of Finance
Anticipated Completion Date: February 2025
Finding Number 2024-001
Assistance Listing # 21.027 - Coronavirus State and Local Fiscal Recovery Funds
Allowable Activities and Costs
Material Weakness in Internal Control Over Financial Reporting and Compliance
Immaterial Noncompliance
Criteria: Federal regulations 2 CFR Part 200, §200.403(g) require allowable costs be adequately
documented. Condition: The Organization did not retain general ledger supporting detail of the costs directly coded
to the federal award program and requested for reimbursement. Further, the Organization does not
allocate administrative costs directly within the general ledger.
Cause: A breakdown in procedures, partially attributable to the federal award program being new
during the year, led to expenses being coded to the federal award program within the general ledger
that were not submitted for reimbursement. In some cases, expense coding was changed after
reimbursement requests were submitted, thereby effectively reclassifying expenses into the federal
award program within the general ledger, or out of the federal award program. Additionally, the
Organization does not journalize the allocation of administrative costs to specific federal award
programs within the general ledger.
Effect: As a result of this condition, the Organization's general ledger does not reconcile to the total
expenses requested for reimbursement for the federal award program. The general ledger supports
expenses of approximately $13,000 less than the reimbursements received, because it excludes the
administrative costs allocation. Administrative costs claimed for reimbursement approximated
$15,000, and when combined with expenses directly coded to the federal award program, total
expenses exceed the reimbursements received, therefore, there are no questioned costs.
Questioned Costs: None.
Recommendation: We recommend management develop procedures whereby administrative
allocations are journalized monthly to each applicable program. Upon submitting reimbursement
requests, the Organization should retain documentation for each federal award program that supports
the costs claimed for reimbursement.
Management's Response: The Organization acknowledges the finding and agrees with the auditors'
recommendations. We recognize the importance of maintaining accurate documentation and financial
controls to ensure compliance with federal regulations. To address the finding, the Organization will
implement the following corrective actions:
1) Journalizing administrative allocations - effective March 31, the Organization will implement a
procedure to allocate administrative costs to each applicable federal award program through
monthly journal entries within the general ledger.
2) Improved documentation retention - the Organization will establish a process to retain
supporting documentation for all costs submitted for reimbursement, ensuring alignment between
the general ledger and reimbursement requests.
3) Internal controls for expense classification - the Organization will implement additional controls
to prevent expenses from being reclassified within the general ledger after reimbursement requests
have been submitted. Any necessary adjustments will be documented with a clear audit trail.
These corrective actions will be fully implemented by March 31, 2025, will include and cover all such
costs from the start of the fiscal year which began October 1, 2024, and management will monitor
compliance to ensure ongoing adherence to these procedures.
Responsible Party for Corrective Action: Bryce Hundley, Director of Finance
Anticipated Completion Date: February 2025