FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs (Continued)
FINDING 2023-002 – Significant Deficiency – Controls Related to Charging Expenses to Programs
CONDITION: The Agency inadvertently overcharged related to Worker’s Compensation and State Unemployment expenses across all Federal programs as noted in Finding 2023-001
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred.
CRITERIA: In accordance with applicable cost principles, charges to Federal programs should be reasonable and based on sound methodology. Proper internal controls would necessitate a periodic review and monitoring of rates at which certain expenditures are being charged to Federal programs within the Agency’s accounting software.
CAUSE: Internal controls do not include provisions for a recurring review of rates at which certain expenditures are being charged to programs.
EFFECT: In the absence of proper internal controls, the Agency may be reimbursed amounts for which it may not be eligible.
RECOMMENDATION: Procedures should be revised to ensure a periodic review of cost allocation practices to ensure that costs are being allocated properly. Any identified discrepancies should be immediately remedied with proper credit provided to applicable Federal programs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan