Requirement to provide public notice of Federal financial assistance programs.
Finding #2025-002 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal program: Department of Treasury, Passed through Harris County, Texas, Assistance Listing #: 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, Contract Number: SLFRFP1966, Contract Year: 10/31/24 – 12/31/26. Criteria: Schedule of Expenditures of Federal Awards (SEFA) – 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Section 200.203 requires recipients and subrecipients of federal funds to establish, document, and maintain effective internal controls over federal awards. Section 200.510 (b) requires the auditee to prepare a schedule of expenditures of federal awards for the period covered by the auditee’s financial statements, which must include the total federal awards expended. Condition and context: MAM incurred qualifying construction expenditures that were properly recorded as CIP. However, MAM did not record government grant revenue or a related grants receivable for the qualifying expenditures incurred during the fiscal year and did not identify or include the qualifying expenditures incurred during the fiscal year on the SEFA. Cause: MAM does not have a system sufficient to ensure that all qualifying federal expenditures are captured and reported to ensure completeness and accuracy of expenditures reported on the SEFA. Effect: Failure to adequately establish and maintain a system of internal controls over preparation of the SEFA adversely affected MAM’s ability to correctly identify and summarize federal awards for reporting in accordance with the Uniform Guidance. Recommendation: Develop policies and procedures to identify and reflect all federal programs on the SEFA, reconcile the federal expenditures to the federal program revenue on a routine basis, and formalize the independent review process for the SEFA and grant billings. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
2023-001 – SIGNIFICANT DEFICIENCY – Internal Controls Over Allowable Activities/Costs and Period of Performance (Originated in 2022) U.S. Department of Treasury – Passed through the State of Alabama Department of Treasury – COVID 19 Coronavirus State and Local Fiscal Recovery Fund – ALN #21.027 – Program Year 2023 Criteria – Per 2 CFR Subpart D - 200.203(b)(3), non-federal entities are required to maintain records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. In addition, per CFR 200.303(a), non-federal entities are required to establish and maintain effective internal controls over federal awards. Condition – For all 60 disbursements sampled, the Foundation relied solely on certifications received (with or without supporting documentation submitted) in order to disburse funds under the federal award program. Cause – Based on guidance received from the grantor, the Foundation relied solely on certifications received (with or without supporting documentation submitted) in order to disburse funds under the federal award program. Effect – Potential disbursements of federal awards for un-allowed costs/activities or in an improper period of availability. Questioned costs – Unknown Auditor’s recommendation – Policies and procedures should be designed, implemented, and monitored to ensure that detailed supporting documentation is obtained and reviewed for all disbursements in accordance with federal award requirements. Management response and current status – See management corrective action plan
2023-001 – SIGNIFICANT DEFICIENCY – Internal Controls Over Allowable Activities/Costs and Period of Performance (Originated in 2022) U.S. Department of Treasury – Passed through the State of Alabama Department of Treasury – COVID 19 Coronavirus State and Local Fiscal Recovery Fund – ALN #21.027 – Program Year 2023 Criteria – Per 2 CFR Subpart D - 200.203(b)(3), non-federal entities are required to maintain records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. In addition, per CFR 200.303(a), non-federal entities are required to establish and maintain effective internal controls over federal awards. Condition – For all 60 disbursements sampled, the Foundation relied solely on certifications received (with or without supporting documentation submitted) in order to disburse funds under the federal award program. Cause – Based on guidance received from the grantor, the Foundation relied solely on certifications received (with or without supporting documentation submitted) in order to disburse funds under the federal award program. Effect – Potential disbursements of federal awards for un-allowed costs/activities or in an improper period of availability. Questioned costs – Unknown Auditor’s recommendation – Policies and procedures should be designed, implemented, and monitored to ensure that detailed supporting documentation is obtained and reviewed for all disbursements in accordance with federal award requirements. Management response and current status – See management corrective action plan
2022-001 ? SIGNIFICANT DEFICIENCY ? Internal Controls Over Allowable Activities/Costs and Period of Performance U.S. Department of Treasury ? Passed through the State of Alabama Department of Treasury ? COVID 19 Coronavirus State and Local Fiscal Recovery Fund ? ALN #21.027 ? Program Year 2022 Criteria ? Per 2 CFR Subpart D - 200.203(b)(3), non-federal entities are required to maintain records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. In addition, per CFR 200.303(a), non-federal entities are required to establish and maintain effective internal controls over federal awards. Condition ? For all 60 disbursements sampled, the Foundation relied solely on certifications received (with or without supporting documentation submitted) in order to disburse funds under the federal award program. Cause ? Based on guidance received from the grantor, the Foundation relied solely on certifications received (with or without supporting documentation submitted) in order to disburse funds under the federal award program. Effect ? Potential disbursements of federal awards for un-allowed costs/activities or in an improper period of availability. Questioned costs ? Unknown Auditors? recommendation ? Policies and procedures should be designed, implemented, and monitored to ensure that detailed supporting documentation is obtained and reviewed for all disbursements in accordance with federal award requirements. Management response and current status ? See management corrective action plan
2022-001 ? SIGNIFICANT DEFICIENCY ? Internal Controls Over Allowable Activities/Costs and Period of Performance U.S. Department of Treasury ? Passed through the State of Alabama Department of Treasury ? COVID 19 Coronavirus State and Local Fiscal Recovery Fund ? ALN #21.027 ? Program Year 2022 Criteria ? Per 2 CFR Subpart D - 200.203(b)(3), non-federal entities are required to maintain records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. In addition, per CFR 200.303(a), non-federal entities are required to establish and maintain effective internal controls over federal awards. Condition ? For all 60 disbursements sampled, the Foundation relied solely on certifications received (with or without supporting documentation submitted) in order to disburse funds under the federal award program. Cause ? Based on guidance received from the grantor, the Foundation relied solely on certifications received (with or without supporting documentation submitted) in order to disburse funds under the federal award program. Effect ? Potential disbursements of federal awards for un-allowed costs/activities or in an improper period of availability. Questioned costs ? Unknown Auditors? recommendation ? Policies and procedures should be designed, implemented, and monitored to ensure that detailed supporting documentation is obtained and reviewed for all disbursements in accordance with federal award requirements. Management response and current status ? See management corrective action plan