Audit 380191

Type of Finding: Material Weakness in Compliance and Internal Control over Compliance Federal agency: U.S. Department of the Treasury Federal program title: American Rescue Plan Act of 2021 (ARPA) Assistance Listing Number: 21.027 Award Period: July 1, 2024 – June 30, 2025 Financial Reporting – Schedule of Expenditures of Federal Awards Criteria: The schedule of expenditures of federal awards must accurately represent financial results as it pertains to federal programs. The schedule of expenditures of federal awards must be reconciled to the accrual basis trial balance. Condition: During audit testing of compliance and internal controls over compliance, it was discovered the schedule of expenditures of federal awards was not accurate and not reconciled to the accrual basis trial balance. Cause: Lack of adherence to established accounting policies and corresponding review procedures coupled with an insufficient number of personnel in the finance department. Effect: Failure to produce an accurate schedule of expenditures of federal awards, and failure to reconcile the schedule of expenditures of federal awards to the accrual basis trial balance could result in grant termination and loss of future awards. Recommendation: Management should implement procedures to ensure an accurate schedule of expenditures of federal awards with a corresponding reconciliation to the accrual basis trial balance. It is recommended that management establish and enforce review and approval procedures related to the schedule of expenditures of federal awards and the accrual basis trial balance. Views of Responsible Officials and Planned Corrective Actions:. The Organization acknowledges the importance regarding the accuracy of the schedule of expenditures of federal awards and corresponding reconciliation to the accrual basis trial balance. The Organization is taking steps to ensure the accuracy and completeness of the schedule of expenditures of federal awards. The Organization will also consider the employment of additional personnel with suitable knowledge, skills, and experience to contribute to the functions of the finance department. Planned completion date for corrective action plan: Fiscal year 2026