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2024-005 Improve Internal Controls Over Reporting Federal Agency: Department of the Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Year: 2024 Compliance Requirement: Reporting Type of Finding: Compliance Internal Control over Compliance...
2024-005 Improve Internal Controls Over Reporting Federal Agency: Department of the Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Year: 2024 Compliance Requirement: Reporting Type of Finding: Compliance Internal Control over Compliance – Significant Deficiency Criteria: Under the requirements of the American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds program, the Town must submit quarterly performance and evaluation reports reflecting accurate and complete financial information, including current period and cumulative expenditures, in accordance with program requirements and the Uniform Guidance. Reported expenditures should correspond to actual amounts expended in the entity’s general ledger for the reporting period. Condition: During testing of two quarterly performance and evaluation (P&E) reports, filed during fiscal year 2024, variances were identified in both current period and cumulative expenditures as compared to the general ledger detail. These variances were primarily due to timing differences. Specifically, the Town reported revenue replacement funds as current period expenditures upon appropriation and approval from the Town meeting in the P&E report, even though the corresponding actual expenditures in the general ledger occurred in a subsequent period. Cause: The Town did not have sufficient controls in place to ensure that expenditures reported on the P&E reports were aligned with the actual amounts expended and recorded in the general ledger for the reporting period. Effect: Reporting expenditures in the P&E report before they are actually incurred and recorded in the general ledger can result in inaccurate financial reporting to the federal awarding agency, reducing the reliability and transparency of the Town’s compliance reporting. Recommendation: The Town should develop and implement procedures to ensure that expenditures reported on quarterly performance and evaluation reports are based on actual amounts expended and recorded in the general ledger during the reporting period, rather than amounts approved or planned for future expenditure. Views of Responsible Official: The Town implemented a Grants Management Policy related to federal awards required under the Uniform Guidance. The adopted policy addresses the concerns identified in 2024-005.
Sliding Fee Discount Supporting Documentation - Significant Deficiency 2024-003 Management acknowledges that supporting documentation used to determine sliding fee discounts should be consistently maintained. Management will implement procedures and controls to ensure that documentation is consisten...
Sliding Fee Discount Supporting Documentation - Significant Deficiency 2024-003 Management acknowledges that supporting documentation used to determine sliding fee discounts should be consistently maintained. Management will implement procedures and controls to ensure that documentation is consistently maintained.
Effective January 2025, Catalyst CT, Inc. transferred all accounting and finance functions in-house after terminating a contract with a third-party accounting firm. The in-house transition process was completed in phases, commencing in October 2023 with the hiring of a VP of Finance (CFO equivalent)...
Effective January 2025, Catalyst CT, Inc. transferred all accounting and finance functions in-house after terminating a contract with a third-party accounting firm. The in-house transition process was completed in phases, commencing in October 2023 with the hiring of a VP of Finance (CFO equivalent) who reviewed the in-place accounting/finance model. Based on the review, an in-house Controller was hired in March 2024, and a Staff Accountant was hired in December 2024. Transitioning of financial report preparation in-house began in the March 31, 2024 reporting period with a goal of having all reporting transferred in-house by year-end. As a result of this transition, reporting is handled by a central group of finance/accounting associates with consistent processes as well as improved internal notifications, including a Grant Cover Sheet, a Grant Cover Sheet Budgets spreadsheet and regular spend rate meetings with relevant senior program directors. Regarding this particular finding, until the end of year 2024, many past reports were a few days to a few weeks overdue because monthly/quarterly books weren’t typically closed by the third-party accountants until at least the third week of the following month. This is not atypical, a monthly closing date within 15 days is usually an exception rather than a rule. Furthermore, most of our grantors were not flummoxed by this. Those who had issues with reporting past the 15th would usually communicate this to us and we would arrange to provide estimated figures by the 15th. Given the nature of our grants, the newly formed in-house accounting group, as of January 1, 2025 has expedited the closing process to occur before the 15th of each month, allowing Catalyst CT, Inc. to meet reporting deadlines with that deadline to be more easily met.
Finding Number: 2024-003 Finding Title: Eligibility and Child Support Non-Cooperation Program: 93.558 Temporary Assistance for Needy Families Name of Contact Person Responsible for Corrective Action: Janelle White – Controller Health and Wellness Service Team Melody Santana-Marty – Controller Commun...
Finding Number: 2024-003 Finding Title: Eligibility and Child Support Non-Cooperation Program: 93.558 Temporary Assistance for Needy Families Name of Contact Person Responsible for Corrective Action: Janelle White – Controller Health and Wellness Service Team Melody Santana-Marty – Controller Community Services and Supports Corrective Action Planned: Internal quality control review checklists, specific to each program area, will be reviewed and updated, and additional controls will be developed to ensure that required documentation is obtained and maintained. Department-wide communication to staff regarding the importance of complete and adequate supporting documentation in the case file prior to case approval has been implemented and will continue on an ongoing basis. This communication will include guidance on how to determine whether supporting documentation is sufficient, along with examples of acceptable documentation. At a minimum, required documentation will include: • Documentation verifying client eligibility for the key eligibility-determining factors. • Evidence of the verification process recorded in MAXIS. • Documentation confirming that child support files have been reviewed and updated for non-cooperation, as applicable. Supervisors will conduct periodic reviews of case files to ensure that all required documentation is on file. Anticipated Completion Date: June 30, 2026
Finding Number: 2024-002 Finding Title: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Daniel Rahkola, Division Director Finance Corrective Acti...
Finding Number: 2024-002 Finding Title: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Daniel Rahkola, Division Director Finance Corrective Action Planned: The County will review program-related costs to ensure compliance with applicable grant requirements and to confirm that all costs are allowable, allocable, and properly supported. Supporting documentation must sufficiently demonstrate the allowability of each cost. This review will include the following: • Submitted payroll reports that detail individual hours worked, descriptions of work performed, and a clear link between the work performed and allowable grant program activities. • General ledger reports that support each cost and clearly document the relationship between the expenditure and allowable grant program expenses. Anticipated Completion Date: June 30, 2026
The Corporation will take the following corrective actions: • Compliance Calendar Implementation - Develop a formal compliance calendar including all Uniform Guidance reporting deadlines. • Designated Reporting Oversight - Assign a responsible management-level individual to monitor timely submission...
The Corporation will take the following corrective actions: • Compliance Calendar Implementation - Develop a formal compliance calendar including all Uniform Guidance reporting deadlines. • Designated Reporting Oversight - Assign a responsible management-level individual to monitor timely submission of federal reporting requirements. • Financial Close Acceleration - Improve internal financial close timelines to meet audit deadlines. • Monitoring and Reporting - Provide periodic updates to executive management regarding compliance status. • Staffing Structure Enhancement – Continue strengthening the finance and budget department structure to improve compliance. Jesús A. Rodríguez Avilés – Financial Planning and Analysis Director Anticipated Completion date June 30, 2026
Corrective Action Plan The Corporation will take the following corrective actions: • Financial Close Acceleration – The Corporation is aligning its accounting closing expectations for the issuance of its financial statements according to the Secretary of the Department of Treasury deadlines. Therefo...
Corrective Action Plan The Corporation will take the following corrective actions: • Financial Close Acceleration – The Corporation is aligning its accounting closing expectations for the issuance of its financial statements according to the Secretary of the Department of Treasury deadlines. Therefore, the accounting close processes are being improved in order to be completed by September of each fiscal year and issue the Single Audit on or before March 31 of the following fiscal year (nine months after each year end). • Compliance Calendar Implementation – Develop a formal compliance calendar to close its accounting books on September 30 and issuing the financial statements by March 31. Name of the contact person responsible for corrective action plan Jesús A. Rodríguez Avilés – Financial Planning and Analysis Director Anticipated Completion date March 31, 2027
2024-003 – Significant Deficiency in Internal Control over Compliance and Other Matters – Special Tests and Provisions Name of Contact Person: Mariya Lovishchuk, Development Director Corrective Action: This was a clerical error issue. Davis Bacon Wages were paid throughout the entire project and cer...
2024-003 – Significant Deficiency in Internal Control over Compliance and Other Matters – Special Tests and Provisions Name of Contact Person: Mariya Lovishchuk, Development Director Corrective Action: This was a clerical error issue. Davis Bacon Wages were paid throughout the entire project and certified payroll was provided. However, the original construction contract did not include the correct prevailing wage language. Prevailing wages requirement was discussed and agreed upon prior to issuance of contract, but wrong language was inserted by mistake. Upon discovery of the wrong language, contract amendment was immediately issued to rectify. Proposed Completion Date: Already complete
The City will implement formal review and approval process for reimbursement requests within grant management policy; and require documentation (signatures/dates) to evidence compliance. Responsible Officials: Michael Elizalde, Grants & Strategic Initiatives Director / Vidal Roman, Finance Director ...
The City will implement formal review and approval process for reimbursement requests within grant management policy; and require documentation (signatures/dates) to evidence compliance. Responsible Officials: Michael Elizalde, Grants & Strategic Initiatives Director / Vidal Roman, Finance Director Timeline to Complete: Estimated June 2026
The City will incorporate verification of grant-funded assets into year-end closing process; require asset reconciliation between Finance Department, Grants Department, and Funding Agency asset records (if provided); and maintain item-level tracking of grant-funded assets. Responsible Officials: Mic...
The City will incorporate verification of grant-funded assets into year-end closing process; require asset reconciliation between Finance Department, Grants Department, and Funding Agency asset records (if provided); and maintain item-level tracking of grant-funded assets. Responsible Officials: Michael Elizalde, Grants & Strategic Initiatives Director / Vidal Roman Finance Director Timeline to Complete: Estimated December 2026
The City will establish centralized grant deadline calendar and grant compliance checklist for all programs; assign all grant monitoring responsibility to Grants Department; and incorporate compliance requirements into formal grant management policy. Responsible Officials: Michael Elizalde, Grants &...
The City will establish centralized grant deadline calendar and grant compliance checklist for all programs; assign all grant monitoring responsibility to Grants Department; and incorporate compliance requirements into formal grant management policy. Responsible Officials: Michael Elizalde, Grants & Strategic Initiatives Director Timeline to Complete: Estimated June 2026.
Finding 2024-03 Filing of Single Audit Reports. Management concurs with the finding. Beginning July 1, 2025, IHS will be transitioning some of its financial reporting and audit support functions to an outside CPA firm specializing in nonprofit services. It is anticipated that this transition will he...
Finding 2024-03 Filing of Single Audit Reports. Management concurs with the finding. Beginning July 1, 2025, IHS will be transitioning some of its financial reporting and audit support functions to an outside CPA firm specializing in nonprofit services. It is anticipated that this transition will help assist in meeting the single audit filing deadline.
Finding 2024-02 Internal Control Over Compliance: Written Compliance Policies and Procedures. Management concurs with the finding. In June 2025, IHS completed revising its Fiscal Policy Manual to incorporate key Uniform Grant Guidance compliance requirements
Finding 2024-02 Internal Control Over Compliance: Written Compliance Policies and Procedures. Management concurs with the finding. In June 2025, IHS completed revising its Fiscal Policy Manual to incorporate key Uniform Grant Guidance compliance requirements
Management has registered with Sam.gov and obtained a Unique Entity ID (UEI) for the submission of the single audit report for the fiscal year ended June 30, 2024. The UEI does not expire and is therefore addressed for future single audits.
Management has registered with Sam.gov and obtained a Unique Entity ID (UEI) for the submission of the single audit report for the fiscal year ended June 30, 2024. The UEI does not expire and is therefore addressed for future single audits.
Finding 2024-003 | Untimely Submission of Financial Status Reports — State Services HIV/SRVS Program Significant Deficiency in Internal Control over Compliance | Contract HHS001317000004 | First-Time Finding Finding Number: 2024-003 Planned Completion Date: June 30, 2025 Responsible Official(s): Jos...
Finding 2024-003 | Untimely Submission of Financial Status Reports — State Services HIV/SRVS Program Significant Deficiency in Internal Control over Compliance | Contract HHS001317000004 | First-Time Finding Finding Number: 2024-003 Planned Completion Date: June 30, 2025 Responsible Official(s): Josafat Saldivar, Fiscal Officer (primary); Juan E. Rodriguez, Executive Director (oversight and approval) Agency Response: STDC acknowledges the finding. FSR #1 under Contract HHS001317000004 (State Services — HIV/SRVS) for the period September 1, 2023 through February 29, 2024 was submitted on April 22, 2024, 22 days after the March 31, 2024 contractual due date required under Contract Attachment B §C. STDC concurs that the late submission constitutes noncompliance with the contract's reporting requirements. Finding 2024-003 shares the same root cause as Finding 2024-001: the absence of a formal, cross-program FSR submission calendar with assigned responsibility and advance reminder controls, compounded by the Fiscal Officer being new to the role during FY2024, and recovery efforts following the ransomware attack. Because both findings share a common root cause, STDC has designed a single integrated corrective action that will address both findings simultaneously through implementation of a cross-program FSR Submission Calendar covering all active federal and state contracts. Corrective Actions to Be Implemented: The corrective actions for Finding 2024-003 are the same as those described for Finding 2024-001. A single cross-program FSR Submission Calendar will be implemented to address both findings. The steps are provided below for reference. Action 1 (Target: April 30, 2025): Develop a formal, written FSR Submission Calendar covering all active federal and state programs, including State Services Contract HHS001317000004. The calendar will identify each FSR period, the contractual due date, the assigned responsible staff member, and advance reminder dates at 30 days and 7 days prior to each deadline. Action 2 (Target: April 30, 2025): Configure automated calendar reminders (Outlook or equivalent) for each FSR due date and each advance reminder date for all programs, including State Services. Reminders will be sent to the Fiscal Officer and the Executive Director. Action 3 (Target: May 15, 2025): Present the completed FSR Submission Calendar to the Executive Director for review and written approval. Retain the signed calendar in the grants compliance files and update it at the start of each new contract year. Action 4 (Target: May 31, 2025): Beginning in May 2025, include FSR submission status for all programs, including State Services, as a standing agenda item in the monthly Fiscal Officer report to the Executive Director. Action 5 (Target: June 30, 2025): Conduct a cross-training session with at least one backup staff member to ensure continuity of FSR submission across all programs in the event of staff absence or turnover. Monitoring and Evaluation: Monthly FSR status reports to the Executive Director will verify that all financial reports across all programs, including State Services, are submitted on or before contractual due dates. The FSR Submission Calendar will be reviewed and updated annually at the start of each contract year.
Finding 2024-001 | Untimely Submission of Financial Status Reports — Ryan White HIV/AIDS Program Significant Deficiency in Internal Control over Compliance | ALN 93.917 | First-Time Finding Finding Number: 2024-001 Planned Completion Date: June 30, 2025 Responsible Official(s): Josafat Saldivar, Fin...
Finding 2024-001 | Untimely Submission of Financial Status Reports — Ryan White HIV/AIDS Program Significant Deficiency in Internal Control over Compliance | ALN 93.917 | First-Time Finding Finding Number: 2024-001 Planned Completion Date: June 30, 2025 Responsible Official(s): Josafat Saldivar, Finance Director (primary); Juan E. Rodriguez, Executive Director (oversight and approval) Agency Response: STDC acknowledges the finding. FSR #1 under Contract HHS001122200004 (Ryan White HIV/AIDS Program, ALN 93.917) for the period April 1 through September 30, 2023 was submitted on February 14, 2024, 106 days after the October 31, 2023 contractual due date. STDC concurs that the late submission constitutes noncompliance with the reporting requirements of Contract HHS001122200004 and 2 CFR Part 200. STDC recognizes the need for a more formalized and proactive process to ensure timely submission of all required financial reports. No formal, cross-program FSR submission calendar with assigned responsibility and automated advance reminders was in place during FY2024. Related reports had been prepared and submitted by the former Finance Director, Ms. Julia C. Gonzalez, but this one had not been completed prior to her departure. Mr. Josafat Saldivar was appointed as Interim Fiscal Officer after Ms. Gonzalez's departure (last work date was October 13, 2023). Shortly after his interim appointment, STDC suffered a ransomware attack on November 3, 2023, which also impacted the accounting system. Recovery efforts were completed and the database restored in January 2024, after which Mr. Saldivar and his staff began data entry and catching up on required reports for all funding agencies. STDC is fully committed to implementing the controls necessary to prevent recurrence across all programs. Corrective Actions to Be Implemented: Action 1 (Target: April 30, 2025): Develop a formal, written FSR Submission Calendar covering all active federal and state programs (Ryan White, State Services, HOPWA, Aging Cluster, LIHEAP). The calendar will identify each FSR period, the contractual due date, the assigned responsible staff member, and advance reminder dates at 30 days and 7 days prior to each deadline. Action 2 (Target: April 30, 2025): Configure automated calendar reminders (Outlook or equivalent) for each FSR due date and each advance reminder date. Reminders will be sent to the Fiscal Officer and the Executive Director for all programs. Action 3 (Target: May 15, 2025): Present the completed FSR Submission Calendar to the Executive Director for review and written approval. Retain the signed calendar in the grants compliance files and update it at the start of each new contract year. Action 4 (Target: May 31, 2025): Beginning in May 2025, include FSR submission status (upcoming due dates, submission dates, and any variances from the schedule) as a standing agenda item in the monthly Fiscal Officer report to the Executive Director. Action 5 (Target: June 30, 2025): Conduct a cross-training session with at least one backup staff member to ensure continuity of FSR submission across all programs in the event of staff absence or turnover. Monitoring and Evaluation: Monthly FSR status reports to the Executive Director will verify that all financial reports are submitted on or before contractual due dates. The FSR Submission Calendar will be reviewed and updated annually at the start of each contract year. Any late submission will be immediately reported to the Executive Director and documented in the Finance Department's internal review records.
TOFMHS concurs with the finding. The Agency filed both semi annual and annual financial reports for three grants during the fiscal year on a timely basis. The one semi-annual report was inadvertently filed late. However, upon notice by the Payment Management System of it being overdue, it was immedi...
TOFMHS concurs with the finding. The Agency filed both semi annual and annual financial reports for three grants during the fiscal year on a timely basis. The one semi-annual report was inadvertently filed late. However, upon notice by the Payment Management System of it being overdue, it was immediately filed. The Agency will prepare a checklist of required federal reports by the finance department, which will be monitored by the Program Director. Responsible Person: Fiscal Officer/Program Director Completion Date: January 1, 2025
Corrective Action Plan: Management has been in contact with HRSA and the Office of Federal Assistance Management Division of Financial Integrity to keep them informed of the status of required financial reporting. The audit for the year end June 30, 2025 has been expedited and will be issued prior t...
Corrective Action Plan: Management has been in contact with HRSA and the Office of Federal Assistance Management Division of Financial Integrity to keep them informed of the status of required financial reporting. The audit for the year end June 30, 2025 has been expedited and will be issued prior to the reporting deadline. To prevent recurrence, management will implement enhanced controls over grant reporting compliance including: •Establishment of a reporting calendar with key deadlines, •Implementation of a standardized checklist to ensure all reporting is completed timely and accurately, and •Periodic management review of reporting status to ensure deadlines are met. Responsible Party - Judy Stein, CFO Estimated Completion - 3/31/2026
Finding # 2024-003 Corrective Action Plan: Subsequent to year-end, management has deposited the required funds into the reserve account to bring the organization into compliance with the USDA loan agreement. To prevent recurrence, management will strengthen its monitoring of debt covenant and reserv...
Finding # 2024-003 Corrective Action Plan: Subsequent to year-end, management has deposited the required funds into the reserve account to bring the organization into compliance with the USDA loan agreement. To prevent recurrence, management will strengthen its monitoring of debt covenant and reserve requirements by implementing the following controls: •Establish a tracking schedule for all loan-related requirements, •Incorporation of reserve funding requirements into the organization’s cash flow planning process, and •Review by appropriate management personnel to ensure timely compliance with all loan agreement provisions. Responsible Party - Judy Stein, CFO Estimated Completion - 3/31/2026
Moving forward, the District will ensure that all supporting documents are retained for reporting elements related to grants. Additionally, the District will add additional review procedures for any reporting items related to grants.
Moving forward, the District will ensure that all supporting documents are retained for reporting elements related to grants. Additionally, the District will add additional review procedures for any reporting items related to grants.
Finding Number: 2024-003 Finding Title: Reporting Program: 93.778 Medicaid Cluster Name of Contact Person Responsible for Corrective Action: Tracy Bowman Corrective Action Planned: The account activity will be reviewed and reconciled monthly to check for chart of accounts errors. When quarterly repo...
Finding Number: 2024-003 Finding Title: Reporting Program: 93.778 Medicaid Cluster Name of Contact Person Responsible for Corrective Action: Tracy Bowman Corrective Action Planned: The account activity will be reviewed and reconciled monthly to check for chart of accounts errors. When quarterly reports are completed two fiscal staff will have reviewed the chart of accounts codes. Anticipated Completion Date: 1/31/2025
Condition: Of the 40 students selected for Return of Title IV (R2T4) testing, 1 student did not have the appropriate amount returned to the federal agency. Planned Corrective Action: To prevent human error from occurring in the future, the Office of Financial Aid has immediately implemented the foll...
Condition: Of the 40 students selected for Return of Title IV (R2T4) testing, 1 student did not have the appropriate amount returned to the federal agency. Planned Corrective Action: To prevent human error from occurring in the future, the Office of Financial Aid has immediately implemented the following process: When a recipient of Title IV grant or loan assistance withdraws from Eastern Michigan University and a Return of Title IV calculation is performed, a Senior Financial Aid Advisor or member of the Financial Aid Management staff will review all required returns completed to ensure accuracy. This review will occur on a weekly basis. Contact person responsible for corrective action: Jennifer Tremewan, Asst. Director Office of Financial Aid Anticipated Completion Date: December 31, 2024
Condition: Of the 40 students selected for enrollment reporting testing, 5 students did not have their status updated appropriately. Planned Corrective Action: The Office of Financial Aid has implemented a process to communicate and confirm with the office responsible for enrollment reporting to ver...
Condition: Of the 40 students selected for enrollment reporting testing, 5 students did not have their status updated appropriately. Planned Corrective Action: The Office of Financial Aid has implemented a process to communicate and confirm with the office responsible for enrollment reporting to verify that enrollment rosters will not be/have not been sent after a semester has officially ended. Contact person responsible for corrective action: Jennifer Tremewan, Asst. Director Office of Financial Aid Anticipated Completion Date: December 31, 2024
U.S. Department of Health and Human Services U.S. Department of Treasury • Significant Deficiency in Internal Control over Compliance Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During ...
U.S. Department of Health and Human Services U.S. Department of Treasury • Significant Deficiency in Internal Control over Compliance Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During our testing of performance and special reporting, we noted that the Organization did not maintain documentation evidencing review or approval of submitted reports. The reports tested did not include evidence demonstrating that an authorized individual reviewed and approved the performance and special reports prior to submission. Recommendation: The Organization should implement formal internal controls over performance and special reporting by establishing documented procedures that require review and approval of all reports prior to submission. Management should define clear roles and responsibilities for report preparation and independent review, ensure that reviews are performed by an authorized individual, and maintain documentation evidencing review and approval, such as signatures, dates, or electronic approvals, to support compliance with performance reporting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Organization will implement formal internal controls over performance and special reporting by developing and documenting standardized procedures for the preparation, review, and approval of all required federal performance and special reports. These procedures will clearly define roles and responsibilities for report preparation and independent review, including identification of authorized individuals responsible for final approval. Evidence of review and approval—including signatures, dates, or electronic approval records—will be retained in the grant file to support compliance with reporting requirements. Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director Planned completion date for corrective action plan: Planned completion date is June 30, 2026.
Significant Deficiency in Internal Control over Compliance The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)– Assistance Listing No. 10.568 and 10.565 Condition: The Organization does not have formal procedures in place to determine the Seco...
Significant Deficiency in Internal Control over Compliance The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)– Assistance Listing No. 10.568 and 10.565 Condition: The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate. Recommendation: We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respectiveidentifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The organization will implement a standard allocation to be completed on a quarterly basis at the minimum. This process will be reviewed by management to ensure implementation. Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director Planned completion date for corrective action plan: Planned completion date is June 2026.
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