Audit 410314

Condition – Management reviewed expenditures to determine approval of costs charges to the contract in meetings. However, due to limitations in the recordkeeping practices at the time, the proper approval was not documented for five items selected. In addition, approval was noted on all payroll related items, but for eight items selected the approval occurred several months after the expense was incurred. Cause – Turnover of finance director with insufficient supporting financial records. Criteria –Support should be maintained to corroborate approval of expenditures on a timely basis. Effect – Reperformance of the control could not be performed. Recommendation – Ensure all allowable expenses are supported by an approved invoice that indicates signature of a responsible management team member as well as date signed. These should be reviewed when paid and prior to drawdowns occurring for this grant. Management’s Response – Management is aware of the difficulties relating to the 2024 audit process and has brought in a new finance director in late 2025 to ensure documentation is consistent for these allowable costs going forward.

Condition – Uniform guidance audit was not submitted to Federal Audit Clearinghouse (FAC) by due date of September 30, 2025. Cause – Turnover in the finance team and a delay in reconciling accounts. Criteria – Uniform guidance audits are required to be submitted no later than nine months after fiscal year-end. Effect – This will result in other than low risk auditee status. Recommendation – All reconciliations and audit related materials should be available on a timely basis to ensure timely submission to FAC by the end of September. Management’s Response – Management is aware of the difficulties relating to the 2024 audit process and has brought in a new finance director as well as a consultant to assist with correcting the books and records and to re-establish appropriate procedures for vouchering and reconciliations during 2025 and forward.