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.
2025-003: Supporting Timecards not Maintained - Significant Deficiency Type of Finding: Significant Deficiency in Internal Control over Compliance and Compliance – Allowable Costs (Payroll) Federal Agency: Chicago Department of Public Health Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number: 1217907 Award Period: January 1, 2023 to December 31, 2025 Criteria: Under 2 CFR 200.430, charges to federal awards for salaries and wages must be supported by records that accurately reflect the work performed, are incorporated into the official records of the non-federal entity, and are supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. In addition, 2 CFR 200.203 requires the Organization to establish and maintain effective internal control over federal awards. Consistent with these requirements, entity policy requires contemporaneous time and effort records for all employees whose salaries are charged to federal awards. Condition and Context: The auditor tested 27 payroll items for the audit period and identified 3 exceptions related to missing timecards for 3 employees for the June 30 pay period. As a result, the Organization was unable to provide complete contemporaneous support for certain payroll costs charged to the federal award. The exceptions identified in the sample indicate that the entity’s controls over payroll documentation were not fully effective for the period under audit. Cause: The Organization’s controls over the preparation, retention, and retrieval of payroll time and effort documentation did not operate effectively for the affected pay periods. Based on available information, required records were either not maintained in accordance with policy or were not retained and retrievable within the Organization’s official records. Effect: Because required supporting documentation was not available, certain payroll costs charged to the federal program could not be fully substantiated as accurate, allowable, and properly allocated to the award. Unsupported payroll costs may be subject to disallowance, and the control deficiency increases the risk that additional payroll charges to the program may not be adequately supported. Questioned Costs: Unknown Repeat Finding: No. Recommendation: We recommend the Organization should strengthen controls over payroll documentation for employees whose compensation is charged to federal awards and maintain payroll support in an organized and retrievable manner within the Organizations records. Views of Responsible Officials and Planned Corrective Action: 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