Audit 397208

Federal Program: Rehabilitation Services Vocational Grants Assistance Listing Number: 84.126 Pass-Through Agency: N/A Award Year: June 30, 2025 Criteria: Reports for the Rehabilitation Services Vocational Grant are required to be accurately recorded and traced back to the Organization's internal billing system and accounting records. Condition/Context: There were 2 invoices out of 40 tested that were incorrectly entered into the Organization's billing system related to the Rehabilitation Services Vocational Grant program. The Organization erroneously recorded the invoices, and the error was not detected during the Organization's daily operations. The sample was not a statistically valid sample Cause: The internal review and approval process for award expenditures was not operating as designed and failed to prevent the erroneous data submissions. Procedures were decentralized and not understood clearly by all responsible parties. The Organization added additional centralized review processes after June 30, 2025 to ensure accuracy and compliance with award requirements. Effect: There is the potential for misstatement of program revenue due to this error. Questioned Costs: Known questioned costs totaled $791, and projected likely questioned costs totaled $30,528, for total questioned costs of $31,319. Recommendation: Management should review and strengthen their policy on the entering of invoices within their billing system to ensure accurate reporting. Views of Responsible Officials and Corrective Actions: Management agrees with this finding. A new centralized procedure to review and approve invoices has been applied to the program, which was implemented subsequent to year end.