Assistance Listing, Federal Agency, and Program Name 93.870, Maternal, Infant, and Early Childhood Home Visiting Grant Federal Award Identification Number and Year S-MIEC-F-2025-9-1 Pass through Entity Children's Trust of South Carolina Finding Type Significant deficiency Repeat Finding No Criteria Per 2 CFR 200.303, the recipient must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the guidance in Standards for Internal Control in the Federal Government, issued by the Comptroller General of the United States, or the Internal Control-Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition The Organization was reimbursed $22,968 under the grant award but amounts were outside of performance year of the grant. The control in place to review expenditures was not effective in identifying expenditures that were outside the grant period. Questioned Costs $22,968 If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported N/A Identification of How Questioned Costs Were Computed The question costs were determined by totaling all of the expenses that were identified to be outside the period of performance of the grant. Context Two contracts were entered into during the year with both having costs that were to be incurred in future period not covered by grant, but both were fully charged to grant for current fiscal year. Through testing of procurement noted that contract term started part way though grant year and for period after end of the grant's period of preformance. As through procurement there were only two contracts entered into the total cost is $22,968 of expenditures related to future period. Cause and Effect The Organization's control over contractor payments was not designed effectively to ensure costs incurred prior to requesting for reimbursement. The failure to have an effective control in place caused the Organization to charge a cost to the program that the Organization had not yet incurred. Recommendation We recommend that the review of process ensure that items have been expended prior to charging amount to the grant. Views of Responsible Officials and Planned Corrective Actions The Organization acknowledges that the expenditure was reimbursed outside of the grant’s period of performance under review due to the nature of the expenditure and accounting treatment selected. The Organization will implement enhanced review procedures of federal expenditures sought for reimbursement to better align with the underlying accounting treatment.
Assistance Listing, Federal Agency, and Program Name 93.247 Advanced Nursing Education Grant Program Federal Award Identification Number and Year 22T96HP45839 Pass through Entity N/A Finding Type Material weakness Repeat Finding Yes Criteria Per 2 CFR Section 200.510(b), "the auditee" must create a Schedule of Expenditures of Federal Awards (SEFA) if they expend more than $1 million in federal awards during their fiscal year. The schedule of expenditures of federal awards should include all expenditures associated with federal grants during the fiscal year. Per 2 CFR 200.400(d), the accounting practices of the recipient and subrecipient must be consistent with these cost principles and support the accumulation of costs as required by these cost principles, including maintaining adequate documentation to support costs charged to the Federal award. Condition The Organization lacked effective controls over the review of the SEFA to ensure that only federal expenditures were included for fiscal year 2025 and to ensure that expenditures were appropriately tracked and recorded to the correct grant period. Questioned Costs N/A If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported N/A Identification of How Questioned Costs Were Computed N/A Context The Organization lacked effective controls to ensure that expenditures were appropriately tracked to individual grants and recognized in the proper reporting period. Consequently, the original SEFA included nonfederal expenditures. Completeness testing identified approximately $120,000 of expenditures that did not pertain to current year federal awards, as well as approximately $65,000 of expenditures related to prior year activity that were inappropriately included on the SEFA. Cause and Effect The Organization does not have an award management system connected to its accounting software to appropriately track federal grants and their associated expenditures. This prevented the Organization from being able to implement effective controls to validate expenditures were applied to the proper grant in the proper period and to ensure that transactions were accounted for consistently between the financial statements and the SEFA. Recommendation We recommend that management implement procedures to perform a review at period end to ensure all payroll and accounts payable accruals are properly included on the SEFA and any amounts related to a future period (prepaid expenses) are excluded. We additionally recommend that management implement procedures to ensure only federal activity is reflected within the SEFA. Views of Responsible Officials and Planned Corrective Actions The Organization acknowledges certain errors in grant tracking and SEFA preparation resulting from the lack of an integrated award management system. The Organization will enhance its reviews around SEFA preparation and federal expenditure tracking to accommodate the lack of an integrated system as well as to ensure cut-off, completeness, and classification of federal expenditures.