2024-003 – Reporting – Significant Deficiency
Federal Program: Assistance Listing #16.812 Second Change Act Reentry Initiative, Passed Through Pennsylvania Commission on Crime and Delinquency, Pass-Through Entity Identifying Number: 36758
Condition/Context: The Organization identified during the pre...
2024-003 – Reporting – Significant Deficiency
Federal Program: Assistance Listing #16.812 Second Change Act Reentry Initiative, Passed Through Pennsylvania Commission on Crime and Delinquency, Pass-Through Entity Identifying Number: 36758
Condition/Context: The Organization identified during the preparation of its second quarter 2024 expenditure report approximately $25,000 in costs incurred during November 2022 that had not previously been included in a submitted expenditure report to PCCD and which were included in the second quarter 2024 expenditure report. While such costs were incurred during the overall program performance period and were allowable and attributable to the program, such costs were not timely identified and reported on the correct expenditure report.
Corrective Action Plan:
To strengthen our internal controls and ensure full compliance with grantor reporting requirements, we are implementing the following corrective measures:
1. Review and Update of Reporting Procedures:
o We will review and revise our existing grant expenditure reporting procedures to ensure that all expenditures are properly captured, reviewed, and reconciled before submission to the grantor.
o Revised procedures will clearly define roles and responsibilities for program staff, grants management, and accounting.
2. Monthly Reconciliation Process:
o A monthly reconciliation process will be implemented to match recorded expenditures in the general ledger with grant budgets and program activity.
o Variances will be reviewed and resolved in advance of quarterly reporting deadlines to prevent errors in submitted reports.
3. Dual Review and Approval:
o All quarterly expenditure reports will be subject to dual review by the grant’s accountant and the accounting operations manager prior to submission.
o This control will ensure that reports are complete, accurate, and supported by accounting records.
4. Training and Communication:
o Finance and program staff involved in grant administration and reporting will receive training on updated procedures and internal control expectations.
o Ongoing communication between departments will be encouraged to ensure awareness of allowable costs, budget constraints, and reporting timelines.
5. System Enhancements:
o We are evaluating our current financial system and looking for a system that will allow better tracking of grant-specific expenditures, including improved reporting functionality and coding accuracy.