2022-003: REAL PROPERTY MANAGEMENT Criteria: Uniform Guidance requires an inventory of fixed assets with a federal interest every two years to ensure the protection of assets funded by federal funds. Condition: The Company did not perform a formal inventory of fixed assets with a federal interest in either of the two previous years. Cause: This was the Company?s first single audit. The Company was actively monitoring the status of equipment as part of operations, but failed to adequately document the monitoring in a static file that could be relied upon. Effect: The Company did not comply with real property management requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to real property management. Repeat Findings: Not a repeat finding. Recommendation: The Company should implement a formal inventory process for fixed assets with a federal interest that results in static documentation of the inventory process and end result. View of Responsible Officials and Planned Corrective Action: The Company will implement a formal inventory process for fixed assets with a federal interest that results in static documentation of inventory process and end result.
2022-004: EMPLOYEE FILES Criteria: Federal compliance requirements dictate that drug-free workplace policy and non-discrimination policy be in place. Condition: The Company did not have a formal non-discrimination or drug free workplace policy in place. Cause: The Company did not obtain signed acknowledgements from employees for either policy in 2022. Effect: The Company did not comply with non-discrimination and drug free workplace requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to employee files. Repeat Findings: Not a repeat finding. Context: Testing was conducted on four out of nine employee files for the reporting period. 100% of the files tested had deviations from requirement. Recommendation: The Company should obtain signed acknowledgements from all employees upon hiring. View of Responsible Officials and Planned Corrective Action: The Company will obtain signed acknowledgements from all employees upon hiring.
2022-005: REPORTING Criteria: SF-425 reports are required to be timely and accurately filed based upon grant agreement timelines. Condition: SF-425 reports were not completed accurately due to incorrect financial data. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company failed to submit accurate SF-425 reports. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: Testing was conducted on two SF-425 reports out of eight reports submitted for the calendar year. 100% of the reports tested had deviations between the source documents and the submitted reports for the reporting period. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-006: ADMINISTRATIVE FEES Criteria: The Company has been approved to draw up to 7% of expenses each period to fund management of the grant awards. Condition: The Company drew administrative fees from grants in excess of approved levels based on expenses in the period. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company improperly drew administrative funds. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-007: DUPLICATE PAYMENTS Criteria: Grant funding should only be claimed for reimbursement of valid expenses. Condition: The Company claimed expenses on duplicate invoices entered into the accounting information system. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company overstated and overclaimed expenses. Questioned Costs: $406.27, while the amount identified is immaterial to the grant, due to lack of segregation of duties identified in finding 2022-02, there may be additional items not identified as part of testing. Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: A total sample of forty-five (45) of four hundred and nineteen (419) items related to disbursements under the major program were selected as a part of allowable cost compliance requirement testing. Recommendation: The Company should ensure that finance staff is adequately trained as well as revising and monitoring internal controls. View of Responsible Officials and Planned Corrective Action: The Company will ensure that finance staff is adequately trained as well as revising and monitoring internal controls by engaging an outside certified public accounting firm for assistance.
2022-003: REAL PROPERTY MANAGEMENT Criteria: Uniform Guidance requires an inventory of fixed assets with a federal interest every two years to ensure the protection of assets funded by federal funds. Condition: The Company did not perform a formal inventory of fixed assets with a federal interest in either of the two previous years. Cause: This was the Company?s first single audit. The Company was actively monitoring the status of equipment as part of operations, but failed to adequately document the monitoring in a static file that could be relied upon. Effect: The Company did not comply with real property management requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to real property management. Repeat Findings: Not a repeat finding. Recommendation: The Company should implement a formal inventory process for fixed assets with a federal interest that results in static documentation of the inventory process and end result. View of Responsible Officials and Planned Corrective Action: The Company will implement a formal inventory process for fixed assets with a federal interest that results in static documentation of inventory process and end result.
2022-004: EMPLOYEE FILES Criteria: Federal compliance requirements dictate that drug-free workplace policy and non-discrimination policy be in place. Condition: The Company did not have a formal non-discrimination or drug free workplace policy in place. Cause: The Company did not obtain signed acknowledgements from employees for either policy in 2022. Effect: The Company did not comply with non-discrimination and drug free workplace requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to employee files. Repeat Findings: Not a repeat finding. Context: Testing was conducted on four out of nine employee files for the reporting period. 100% of the files tested had deviations from requirement. Recommendation: The Company should obtain signed acknowledgements from all employees upon hiring. View of Responsible Officials and Planned Corrective Action: The Company will obtain signed acknowledgements from all employees upon hiring.
2022-005: REPORTING Criteria: SF-425 reports are required to be timely and accurately filed based upon grant agreement timelines. Condition: SF-425 reports were not completed accurately due to incorrect financial data. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company failed to submit accurate SF-425 reports. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: Testing was conducted on two SF-425 reports out of eight reports submitted for the calendar year. 100% of the reports tested had deviations between the source documents and the submitted reports for the reporting period. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-006: ADMINISTRATIVE FEES Criteria: The Company has been approved to draw up to 7% of expenses each period to fund management of the grant awards. Condition: The Company drew administrative fees from grants in excess of approved levels based on expenses in the period. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company improperly drew administrative funds. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-007: DUPLICATE PAYMENTS Criteria: Grant funding should only be claimed for reimbursement of valid expenses. Condition: The Company claimed expenses on duplicate invoices entered into the accounting information system. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company overstated and overclaimed expenses. Questioned Costs: $406.27, while the amount identified is immaterial to the grant, due to lack of segregation of duties identified in finding 2022-02, there may be additional items not identified as part of testing. Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: A total sample of forty-five (45) of four hundred and nineteen (419) items related to disbursements under the major program were selected as a part of allowable cost compliance requirement testing. Recommendation: The Company should ensure that finance staff is adequately trained as well as revising and monitoring internal controls. View of Responsible Officials and Planned Corrective Action: The Company will ensure that finance staff is adequately trained as well as revising and monitoring internal controls by engaging an outside certified public accounting firm for assistance.
2022-003: REAL PROPERTY MANAGEMENT Criteria: Uniform Guidance requires an inventory of fixed assets with a federal interest every two years to ensure the protection of assets funded by federal funds. Condition: The Company did not perform a formal inventory of fixed assets with a federal interest in either of the two previous years. Cause: This was the Company?s first single audit. The Company was actively monitoring the status of equipment as part of operations, but failed to adequately document the monitoring in a static file that could be relied upon. Effect: The Company did not comply with real property management requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to real property management. Repeat Findings: Not a repeat finding. Recommendation: The Company should implement a formal inventory process for fixed assets with a federal interest that results in static documentation of the inventory process and end result. View of Responsible Officials and Planned Corrective Action: The Company will implement a formal inventory process for fixed assets with a federal interest that results in static documentation of inventory process and end result.
2022-004: EMPLOYEE FILES Criteria: Federal compliance requirements dictate that drug-free workplace policy and non-discrimination policy be in place. Condition: The Company did not have a formal non-discrimination or drug free workplace policy in place. Cause: The Company did not obtain signed acknowledgements from employees for either policy in 2022. Effect: The Company did not comply with non-discrimination and drug free workplace requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to employee files. Repeat Findings: Not a repeat finding. Context: Testing was conducted on four out of nine employee files for the reporting period. 100% of the files tested had deviations from requirement. Recommendation: The Company should obtain signed acknowledgements from all employees upon hiring. View of Responsible Officials and Planned Corrective Action: The Company will obtain signed acknowledgements from all employees upon hiring.
2022-005: REPORTING Criteria: SF-425 reports are required to be timely and accurately filed based upon grant agreement timelines. Condition: SF-425 reports were not completed accurately due to incorrect financial data. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company failed to submit accurate SF-425 reports. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: Testing was conducted on two SF-425 reports out of eight reports submitted for the calendar year. 100% of the reports tested had deviations between the source documents and the submitted reports for the reporting period. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-006: ADMINISTRATIVE FEES Criteria: The Company has been approved to draw up to 7% of expenses each period to fund management of the grant awards. Condition: The Company drew administrative fees from grants in excess of approved levels based on expenses in the period. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company improperly drew administrative funds. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-007: DUPLICATE PAYMENTS Criteria: Grant funding should only be claimed for reimbursement of valid expenses. Condition: The Company claimed expenses on duplicate invoices entered into the accounting information system. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company overstated and overclaimed expenses. Questioned Costs: $406.27, while the amount identified is immaterial to the grant, due to lack of segregation of duties identified in finding 2022-02, there may be additional items not identified as part of testing. Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: A total sample of forty-five (45) of four hundred and nineteen (419) items related to disbursements under the major program were selected as a part of allowable cost compliance requirement testing. Recommendation: The Company should ensure that finance staff is adequately trained as well as revising and monitoring internal controls. View of Responsible Officials and Planned Corrective Action: The Company will ensure that finance staff is adequately trained as well as revising and monitoring internal controls by engaging an outside certified public accounting firm for assistance.
2022-003: REAL PROPERTY MANAGEMENT Criteria: Uniform Guidance requires an inventory of fixed assets with a federal interest every two years to ensure the protection of assets funded by federal funds. Condition: The Company did not perform a formal inventory of fixed assets with a federal interest in either of the two previous years. Cause: This was the Company?s first single audit. The Company was actively monitoring the status of equipment as part of operations, but failed to adequately document the monitoring in a static file that could be relied upon. Effect: The Company did not comply with real property management requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to real property management. Repeat Findings: Not a repeat finding. Recommendation: The Company should implement a formal inventory process for fixed assets with a federal interest that results in static documentation of the inventory process and end result. View of Responsible Officials and Planned Corrective Action: The Company will implement a formal inventory process for fixed assets with a federal interest that results in static documentation of inventory process and end result.
2022-004: EMPLOYEE FILES Criteria: Federal compliance requirements dictate that drug-free workplace policy and non-discrimination policy be in place. Condition: The Company did not have a formal non-discrimination or drug free workplace policy in place. Cause: The Company did not obtain signed acknowledgements from employees for either policy in 2022. Effect: The Company did not comply with non-discrimination and drug free workplace requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to employee files. Repeat Findings: Not a repeat finding. Context: Testing was conducted on four out of nine employee files for the reporting period. 100% of the files tested had deviations from requirement. Recommendation: The Company should obtain signed acknowledgements from all employees upon hiring. View of Responsible Officials and Planned Corrective Action: The Company will obtain signed acknowledgements from all employees upon hiring.
2022-005: REPORTING Criteria: SF-425 reports are required to be timely and accurately filed based upon grant agreement timelines. Condition: SF-425 reports were not completed accurately due to incorrect financial data. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company failed to submit accurate SF-425 reports. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: Testing was conducted on two SF-425 reports out of eight reports submitted for the calendar year. 100% of the reports tested had deviations between the source documents and the submitted reports for the reporting period. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-006: ADMINISTRATIVE FEES Criteria: The Company has been approved to draw up to 7% of expenses each period to fund management of the grant awards. Condition: The Company drew administrative fees from grants in excess of approved levels based on expenses in the period. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company improperly drew administrative funds. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-007: DUPLICATE PAYMENTS Criteria: Grant funding should only be claimed for reimbursement of valid expenses. Condition: The Company claimed expenses on duplicate invoices entered into the accounting information system. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company overstated and overclaimed expenses. Questioned Costs: $406.27, while the amount identified is immaterial to the grant, due to lack of segregation of duties identified in finding 2022-02, there may be additional items not identified as part of testing. Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: A total sample of forty-five (45) of four hundred and nineteen (419) items related to disbursements under the major program were selected as a part of allowable cost compliance requirement testing. Recommendation: The Company should ensure that finance staff is adequately trained as well as revising and monitoring internal controls. View of Responsible Officials and Planned Corrective Action: The Company will ensure that finance staff is adequately trained as well as revising and monitoring internal controls by engaging an outside certified public accounting firm for assistance.
2022-003: REAL PROPERTY MANAGEMENT Criteria: Uniform Guidance requires an inventory of fixed assets with a federal interest every two years to ensure the protection of assets funded by federal funds. Condition: The Company did not perform a formal inventory of fixed assets with a federal interest in either of the two previous years. Cause: This was the Company?s first single audit. The Company was actively monitoring the status of equipment as part of operations, but failed to adequately document the monitoring in a static file that could be relied upon. Effect: The Company did not comply with real property management requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to real property management. Repeat Findings: Not a repeat finding. Recommendation: The Company should implement a formal inventory process for fixed assets with a federal interest that results in static documentation of the inventory process and end result. View of Responsible Officials and Planned Corrective Action: The Company will implement a formal inventory process for fixed assets with a federal interest that results in static documentation of inventory process and end result.
2022-004: EMPLOYEE FILES Criteria: Federal compliance requirements dictate that drug-free workplace policy and non-discrimination policy be in place. Condition: The Company did not have a formal non-discrimination or drug free workplace policy in place. Cause: The Company did not obtain signed acknowledgements from employees for either policy in 2022. Effect: The Company did not comply with non-discrimination and drug free workplace requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to employee files. Repeat Findings: Not a repeat finding. Context: Testing was conducted on four out of nine employee files for the reporting period. 100% of the files tested had deviations from requirement. Recommendation: The Company should obtain signed acknowledgements from all employees upon hiring. View of Responsible Officials and Planned Corrective Action: The Company will obtain signed acknowledgements from all employees upon hiring.
2022-005: REPORTING Criteria: SF-425 reports are required to be timely and accurately filed based upon grant agreement timelines. Condition: SF-425 reports were not completed accurately due to incorrect financial data. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company failed to submit accurate SF-425 reports. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: Testing was conducted on two SF-425 reports out of eight reports submitted for the calendar year. 100% of the reports tested had deviations between the source documents and the submitted reports for the reporting period. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-006: ADMINISTRATIVE FEES Criteria: The Company has been approved to draw up to 7% of expenses each period to fund management of the grant awards. Condition: The Company drew administrative fees from grants in excess of approved levels based on expenses in the period. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company improperly drew administrative funds. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-007: DUPLICATE PAYMENTS Criteria: Grant funding should only be claimed for reimbursement of valid expenses. Condition: The Company claimed expenses on duplicate invoices entered into the accounting information system. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company overstated and overclaimed expenses. Questioned Costs: $406.27, while the amount identified is immaterial to the grant, due to lack of segregation of duties identified in finding 2022-02, there may be additional items not identified as part of testing. Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: A total sample of forty-five (45) of four hundred and nineteen (419) items related to disbursements under the major program were selected as a part of allowable cost compliance requirement testing. Recommendation: The Company should ensure that finance staff is adequately trained as well as revising and monitoring internal controls. View of Responsible Officials and Planned Corrective Action: The Company will ensure that finance staff is adequately trained as well as revising and monitoring internal controls by engaging an outside certified public accounting firm for assistance.
2022-003: REAL PROPERTY MANAGEMENT Criteria: Uniform Guidance requires an inventory of fixed assets with a federal interest every two years to ensure the protection of assets funded by federal funds. Condition: The Company did not perform a formal inventory of fixed assets with a federal interest in either of the two previous years. Cause: This was the Company?s first single audit. The Company was actively monitoring the status of equipment as part of operations, but failed to adequately document the monitoring in a static file that could be relied upon. Effect: The Company did not comply with real property management requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to real property management. Repeat Findings: Not a repeat finding. Recommendation: The Company should implement a formal inventory process for fixed assets with a federal interest that results in static documentation of the inventory process and end result. View of Responsible Officials and Planned Corrective Action: The Company will implement a formal inventory process for fixed assets with a federal interest that results in static documentation of inventory process and end result.
2022-004: EMPLOYEE FILES Criteria: Federal compliance requirements dictate that drug-free workplace policy and non-discrimination policy be in place. Condition: The Company did not have a formal non-discrimination or drug free workplace policy in place. Cause: The Company did not obtain signed acknowledgements from employees for either policy in 2022. Effect: The Company did not comply with non-discrimination and drug free workplace requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to employee files. Repeat Findings: Not a repeat finding. Context: Testing was conducted on four out of nine employee files for the reporting period. 100% of the files tested had deviations from requirement. Recommendation: The Company should obtain signed acknowledgements from all employees upon hiring. View of Responsible Officials and Planned Corrective Action: The Company will obtain signed acknowledgements from all employees upon hiring.
2022-005: REPORTING Criteria: SF-425 reports are required to be timely and accurately filed based upon grant agreement timelines. Condition: SF-425 reports were not completed accurately due to incorrect financial data. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company failed to submit accurate SF-425 reports. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: Testing was conducted on two SF-425 reports out of eight reports submitted for the calendar year. 100% of the reports tested had deviations between the source documents and the submitted reports for the reporting period. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-006: ADMINISTRATIVE FEES Criteria: The Company has been approved to draw up to 7% of expenses each period to fund management of the grant awards. Condition: The Company drew administrative fees from grants in excess of approved levels based on expenses in the period. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company improperly drew administrative funds. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-007: DUPLICATE PAYMENTS Criteria: Grant funding should only be claimed for reimbursement of valid expenses. Condition: The Company claimed expenses on duplicate invoices entered into the accounting information system. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company overstated and overclaimed expenses. Questioned Costs: $406.27, while the amount identified is immaterial to the grant, due to lack of segregation of duties identified in finding 2022-02, there may be additional items not identified as part of testing. Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: A total sample of forty-five (45) of four hundred and nineteen (419) items related to disbursements under the major program were selected as a part of allowable cost compliance requirement testing. Recommendation: The Company should ensure that finance staff is adequately trained as well as revising and monitoring internal controls. View of Responsible Officials and Planned Corrective Action: The Company will ensure that finance staff is adequately trained as well as revising and monitoring internal controls by engaging an outside certified public accounting firm for assistance.
2022-003: REAL PROPERTY MANAGEMENT Criteria: Uniform Guidance requires an inventory of fixed assets with a federal interest every two years to ensure the protection of assets funded by federal funds. Condition: The Company did not perform a formal inventory of fixed assets with a federal interest in either of the two previous years. Cause: This was the Company?s first single audit. The Company was actively monitoring the status of equipment as part of operations, but failed to adequately document the monitoring in a static file that could be relied upon. Effect: The Company did not comply with real property management requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to real property management. Repeat Findings: Not a repeat finding. Recommendation: The Company should implement a formal inventory process for fixed assets with a federal interest that results in static documentation of the inventory process and end result. View of Responsible Officials and Planned Corrective Action: The Company will implement a formal inventory process for fixed assets with a federal interest that results in static documentation of inventory process and end result.
2022-004: EMPLOYEE FILES Criteria: Federal compliance requirements dictate that drug-free workplace policy and non-discrimination policy be in place. Condition: The Company did not have a formal non-discrimination or drug free workplace policy in place. Cause: The Company did not obtain signed acknowledgements from employees for either policy in 2022. Effect: The Company did not comply with non-discrimination and drug free workplace requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to employee files. Repeat Findings: Not a repeat finding. Context: Testing was conducted on four out of nine employee files for the reporting period. 100% of the files tested had deviations from requirement. Recommendation: The Company should obtain signed acknowledgements from all employees upon hiring. View of Responsible Officials and Planned Corrective Action: The Company will obtain signed acknowledgements from all employees upon hiring.
2022-005: REPORTING Criteria: SF-425 reports are required to be timely and accurately filed based upon grant agreement timelines. Condition: SF-425 reports were not completed accurately due to incorrect financial data. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company failed to submit accurate SF-425 reports. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: Testing was conducted on two SF-425 reports out of eight reports submitted for the calendar year. 100% of the reports tested had deviations between the source documents and the submitted reports for the reporting period. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-006: ADMINISTRATIVE FEES Criteria: The Company has been approved to draw up to 7% of expenses each period to fund management of the grant awards. Condition: The Company drew administrative fees from grants in excess of approved levels based on expenses in the period. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company improperly drew administrative funds. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-007: DUPLICATE PAYMENTS Criteria: Grant funding should only be claimed for reimbursement of valid expenses. Condition: The Company claimed expenses on duplicate invoices entered into the accounting information system. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company overstated and overclaimed expenses. Questioned Costs: $406.27, while the amount identified is immaterial to the grant, due to lack of segregation of duties identified in finding 2022-02, there may be additional items not identified as part of testing. Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: A total sample of forty-five (45) of four hundred and nineteen (419) items related to disbursements under the major program were selected as a part of allowable cost compliance requirement testing. Recommendation: The Company should ensure that finance staff is adequately trained as well as revising and monitoring internal controls. View of Responsible Officials and Planned Corrective Action: The Company will ensure that finance staff is adequately trained as well as revising and monitoring internal controls by engaging an outside certified public accounting firm for assistance.
2022-003: REAL PROPERTY MANAGEMENT Criteria: Uniform Guidance requires an inventory of fixed assets with a federal interest every two years to ensure the protection of assets funded by federal funds. Condition: The Company did not perform a formal inventory of fixed assets with a federal interest in either of the two previous years. Cause: This was the Company?s first single audit. The Company was actively monitoring the status of equipment as part of operations, but failed to adequately document the monitoring in a static file that could be relied upon. Effect: The Company did not comply with real property management requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to real property management. Repeat Findings: Not a repeat finding. Recommendation: The Company should implement a formal inventory process for fixed assets with a federal interest that results in static documentation of the inventory process and end result. View of Responsible Officials and Planned Corrective Action: The Company will implement a formal inventory process for fixed assets with a federal interest that results in static documentation of inventory process and end result.
2022-004: EMPLOYEE FILES Criteria: Federal compliance requirements dictate that drug-free workplace policy and non-discrimination policy be in place. Condition: The Company did not have a formal non-discrimination or drug free workplace policy in place. Cause: The Company did not obtain signed acknowledgements from employees for either policy in 2022. Effect: The Company did not comply with non-discrimination and drug free workplace requirements. Questioned Costs: N/A Perspective Information: The issue is considered to be isolated to employee files. Repeat Findings: Not a repeat finding. Context: Testing was conducted on four out of nine employee files for the reporting period. 100% of the files tested had deviations from requirement. Recommendation: The Company should obtain signed acknowledgements from all employees upon hiring. View of Responsible Officials and Planned Corrective Action: The Company will obtain signed acknowledgements from all employees upon hiring.
2022-005: REPORTING Criteria: SF-425 reports are required to be timely and accurately filed based upon grant agreement timelines. Condition: SF-425 reports were not completed accurately due to incorrect financial data. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company failed to submit accurate SF-425 reports. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: Testing was conducted on two SF-425 reports out of eight reports submitted for the calendar year. 100% of the reports tested had deviations between the source documents and the submitted reports for the reporting period. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-006: ADMINISTRATIVE FEES Criteria: The Company has been approved to draw up to 7% of expenses each period to fund management of the grant awards. Condition: The Company drew administrative fees from grants in excess of approved levels based on expenses in the period. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company improperly drew administrative funds. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.
2022-007: DUPLICATE PAYMENTS Criteria: Grant funding should only be claimed for reimbursement of valid expenses. Condition: The Company claimed expenses on duplicate invoices entered into the accounting information system. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company overstated and overclaimed expenses. Questioned Costs: $406.27, while the amount identified is immaterial to the grant, due to lack of segregation of duties identified in finding 2022-02, there may be additional items not identified as part of testing. Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: A total sample of forty-five (45) of four hundred and nineteen (419) items related to disbursements under the major program were selected as a part of allowable cost compliance requirement testing. Recommendation: The Company should ensure that finance staff is adequately trained as well as revising and monitoring internal controls. View of Responsible Officials and Planned Corrective Action: The Company will ensure that finance staff is adequately trained as well as revising and monitoring internal controls by engaging an outside certified public accounting firm for assistance.