2022-001: Advance Billings for Items of Cost Criteria and Condition: Advance billings of incurred costs are not allowed. Context: Audit procedures identified that accrued paid time off (PTO) is being billed monthly for all employees allocable to this federal award. Cause: As part of the month-end close, accrued PTO is allocated to all programs. The processes for accumulating costs to bill for reimbursement include these accruals, even though the costs have not been paid to employees. Effect: Accrued PTO is billed in advance of payment, based on the month currently billed. Recommendation: Procedures should be modified to ensure that only incurred and paid costs are being billed to federal awards for reimbursement.
2022-002: Allowable Cost ? Mileage Criteria and Condition: Costs incurred must be allowable in accordance with the terms and conditions of the federal award. Context: Audit procedures identified one transaction where mileage reimbursement costs were allocated to the award incorrectly. Cause: These allocations are formalized in a Personnel Action Form (PAF) for each employee. Mileage is allocated based on the PAF, though mileage should be specifically identifiable to each program. Effect: Mileage costs can be improperly allocated amongst various programs to which an employee is working, resulting in under or overbilled and reimbursed amounts. Recommendation: Costs that are specifically identifiable to a specific program or award should not be allocated but directly charged to the program or award it applies to.
2022-003: Quarterly Financial Report Submissions Criteria and Condition: Federal award agreements require quarterly financial reports to be submitted by the fifteenth working day of the month following the quarter of reporting. Context: Audit procedures identified all quarters for fiscal year 2022 where reports were either not submitted within the fifteen-day requirement, Management could not substantiate when they were submitted, or were not submitted at all. Quarterly reporting period ended September 30, 2021 was submitted November 29, 2021. Quarterly reporting period ended December 31, 2021 did not have substantiation for when it was submitted. Quarterly reporting periods ended March 31, 2022 and June 30, 2022 were not submitted. Cause: Management has asserted that due to transitioning staff at the cognizant organization, requests for programmatic activities have occurred less and less. As a result, financial reports were submitted as requested by the cognizant organization. Effect: Adelante is not in compliance with the federal award financial reporting requirements on a quarterly basis. Recommendation: Procedures should be developed to ensure timely submittal and proof of submittal is maintained for quarterly financial reporting requirements.
2022-001: Advance Billings for Items of Cost Criteria and Condition: Advance billings of incurred costs are not allowed. Context: Audit procedures identified that accrued paid time off (PTO) is being billed monthly for all employees allocable to this federal award. Cause: As part of the month-end close, accrued PTO is allocated to all programs. The processes for accumulating costs to bill for reimbursement include these accruals, even though the costs have not been paid to employees. Effect: Accrued PTO is billed in advance of payment, based on the month currently billed. Recommendation: Procedures should be modified to ensure that only incurred and paid costs are being billed to federal awards for reimbursement.
2022-002: Allowable Cost ? Mileage Criteria and Condition: Costs incurred must be allowable in accordance with the terms and conditions of the federal award. Context: Audit procedures identified one transaction where mileage reimbursement costs were allocated to the award incorrectly. Cause: These allocations are formalized in a Personnel Action Form (PAF) for each employee. Mileage is allocated based on the PAF, though mileage should be specifically identifiable to each program. Effect: Mileage costs can be improperly allocated amongst various programs to which an employee is working, resulting in under or overbilled and reimbursed amounts. Recommendation: Costs that are specifically identifiable to a specific program or award should not be allocated but directly charged to the program or award it applies to.
2022-003: Quarterly Financial Report Submissions Criteria and Condition: Federal award agreements require quarterly financial reports to be submitted by the fifteenth working day of the month following the quarter of reporting. Context: Audit procedures identified all quarters for fiscal year 2022 where reports were either not submitted within the fifteen-day requirement, Management could not substantiate when they were submitted, or were not submitted at all. Quarterly reporting period ended September 30, 2021 was submitted November 29, 2021. Quarterly reporting period ended December 31, 2021 did not have substantiation for when it was submitted. Quarterly reporting periods ended March 31, 2022 and June 30, 2022 were not submitted. Cause: Management has asserted that due to transitioning staff at the cognizant organization, requests for programmatic activities have occurred less and less. As a result, financial reports were submitted as requested by the cognizant organization. Effect: Adelante is not in compliance with the federal award financial reporting requirements on a quarterly basis. Recommendation: Procedures should be developed to ensure timely submittal and proof of submittal is maintained for quarterly financial reporting requirements.
2022-001: Advance Billings for Items of Cost Criteria and Condition: Advance billings of incurred costs are not allowed. Context: Audit procedures identified that accrued paid time off (PTO) is being billed monthly for all employees allocable to this federal award. Cause: As part of the month-end close, accrued PTO is allocated to all programs. The processes for accumulating costs to bill for reimbursement include these accruals, even though the costs have not been paid to employees. Effect: Accrued PTO is billed in advance of payment, based on the month currently billed. Recommendation: Procedures should be modified to ensure that only incurred and paid costs are being billed to federal awards for reimbursement.
2022-002: Allowable Cost ? Mileage Criteria and Condition: Costs incurred must be allowable in accordance with the terms and conditions of the federal award. Context: Audit procedures identified one transaction where mileage reimbursement costs were allocated to the award incorrectly. Cause: These allocations are formalized in a Personnel Action Form (PAF) for each employee. Mileage is allocated based on the PAF, though mileage should be specifically identifiable to each program. Effect: Mileage costs can be improperly allocated amongst various programs to which an employee is working, resulting in under or overbilled and reimbursed amounts. Recommendation: Costs that are specifically identifiable to a specific program or award should not be allocated but directly charged to the program or award it applies to.
2022-003: Quarterly Financial Report Submissions Criteria and Condition: Federal award agreements require quarterly financial reports to be submitted by the fifteenth working day of the month following the quarter of reporting. Context: Audit procedures identified all quarters for fiscal year 2022 where reports were either not submitted within the fifteen-day requirement, Management could not substantiate when they were submitted, or were not submitted at all. Quarterly reporting period ended September 30, 2021 was submitted November 29, 2021. Quarterly reporting period ended December 31, 2021 did not have substantiation for when it was submitted. Quarterly reporting periods ended March 31, 2022 and June 30, 2022 were not submitted. Cause: Management has asserted that due to transitioning staff at the cognizant organization, requests for programmatic activities have occurred less and less. As a result, financial reports were submitted as requested by the cognizant organization. Effect: Adelante is not in compliance with the federal award financial reporting requirements on a quarterly basis. Recommendation: Procedures should be developed to ensure timely submittal and proof of submittal is maintained for quarterly financial reporting requirements.
2022-001: Advance Billings for Items of Cost Criteria and Condition: Advance billings of incurred costs are not allowed. Context: Audit procedures identified that accrued paid time off (PTO) is being billed monthly for all employees allocable to this federal award. Cause: As part of the month-end close, accrued PTO is allocated to all programs. The processes for accumulating costs to bill for reimbursement include these accruals, even though the costs have not been paid to employees. Effect: Accrued PTO is billed in advance of payment, based on the month currently billed. Recommendation: Procedures should be modified to ensure that only incurred and paid costs are being billed to federal awards for reimbursement.
2022-002: Allowable Cost ? Mileage Criteria and Condition: Costs incurred must be allowable in accordance with the terms and conditions of the federal award. Context: Audit procedures identified one transaction where mileage reimbursement costs were allocated to the award incorrectly. Cause: These allocations are formalized in a Personnel Action Form (PAF) for each employee. Mileage is allocated based on the PAF, though mileage should be specifically identifiable to each program. Effect: Mileage costs can be improperly allocated amongst various programs to which an employee is working, resulting in under or overbilled and reimbursed amounts. Recommendation: Costs that are specifically identifiable to a specific program or award should not be allocated but directly charged to the program or award it applies to.
2022-003: Quarterly Financial Report Submissions Criteria and Condition: Federal award agreements require quarterly financial reports to be submitted by the fifteenth working day of the month following the quarter of reporting. Context: Audit procedures identified all quarters for fiscal year 2022 where reports were either not submitted within the fifteen-day requirement, Management could not substantiate when they were submitted, or were not submitted at all. Quarterly reporting period ended September 30, 2021 was submitted November 29, 2021. Quarterly reporting period ended December 31, 2021 did not have substantiation for when it was submitted. Quarterly reporting periods ended March 31, 2022 and June 30, 2022 were not submitted. Cause: Management has asserted that due to transitioning staff at the cognizant organization, requests for programmatic activities have occurred less and less. As a result, financial reports were submitted as requested by the cognizant organization. Effect: Adelante is not in compliance with the federal award financial reporting requirements on a quarterly basis. Recommendation: Procedures should be developed to ensure timely submittal and proof of submittal is maintained for quarterly financial reporting requirements.