Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-002: Preparation of the Schedule of Federal Expenditures (SEFA) Criteria: In accordance with 2 CFR 200.302 (Financial Management) the auditee must be able to identify all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the assistance listing number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Condition: During our review of the initial SEFA several errors came to our attention. There were multiple instances where the expenditures reported on the SEFA did not agree to the underlying supporting financial reports, and adjustments to the SEFA were required. Cause: During fiscal year 2022, the SEFA was not maintained with sufficient accuracy and detail. At year-end, there was insufficient review of the SEFA by the appropriate personnel who possess the necessary expertise. Effect or Potential Effect: Inaccurate and incomplete information on the SEFA could lead to unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: Undetermined Context: Our audit testwork consisted of substantive procedures over the Schedule of Expenditures of Federal Awards. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Yes - Findings 2020-002 and 2021-002. Recommendation: We recommend ABC review the SEFA and supporting schedules prior to the audit to ensure the SEFA is complete and all numbers are accurate and can be supported. Additionally, to reduce the risk of human error, we recommend all grant activity be tracked within the accounting system.
Finding 2022-005 Internal Controls Over Compliance for Cash Management, Allowable Costs, and Procurement Federal Program: 10.760 Water and Waste Disposal Systems for Rural Communities Condition: The City does not have formally documented written controls to ensure compliance with the U.S. Office of Management and Budget?s (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), in regards to determining allowable costs, procurement procedures, and cash management. Criteria: 2 CFR ? 200.302(b) requires the City to have written procedures related to managing cash from federal awards, including determining the allowability of costs in accordance with 2 CFR 200 Subpart E ? Cost Principles. Additionally, 2 CFR ? 318(a) and (c), requires the City to formally document procedures used for procurements made within federal programs, to demonstrate compliance with Uniform Guidance, which includes written standards of conduct that cover conflicts of interest and govern the performance of individuals engaged in procurement. Cause: The City?s policies and procedures have not been formally drafted and updated in written form. Effect: Failure to have written policies and procedures resulted in the City?s noncompliance with the requirements of the Uniform Guidance. Context: This is a general requirement that pertains to most federal grants. This was not identified via sampling procedures. Questioned Costs: None identified. Recommendation: We recommend that management adopt the referenced policies in order to comply with Uniform Guidance. Views of Responsible Officials And Planned Corrective Actions: Management agrees with the recommendation. See corresponding Corrective Action Plan.
Finding 2022-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Statement of Condition: Internal control processes over financial reporting did not ensure that all transactions were properly recorded. Criteria: The HUD Handbook 4370.2, Chapter 2 requires the books and accounts to be complete and accurate. Additionally, 2 CFR Part 200 Section 200.302 Financial Management states that the financial management system of each non-federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award in accordance with the reporting requirements. Additionally, 2 CFR Part 200 Section 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions. Effect: Noncompliance with HUD and Uniform Guidance regulations. Cause: Management oversight. Context: A review of journal entries made during the year revealed journal entries made in the incorrect period and erroneous journal entries. Additionally, the review process of the Corporation's financial information did not discover these errors. Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Questioned Costs: N/A Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding and will review the accounting and financial procedures, system of internal controls and policies.
Unallowable Costs Significant Deficiency U.S. SMALL BUSINESS ASSOCIATION (SBA) ALN #: 59.077 Federal Award Identification #: COVID-19 Community Navigator Pilot Program (SBAHQ22CNP0036) Condition: The Organization charged and was reimbursed for grant expenses that were not paid. There also is not a clear trail from source document to expenditures charged to the federal grant. Criteria: CFR 200.302, 200.403 Questioned Costs: $17,984 Context: Out of $253,139 of non-payroll expenses charged to the grant and reimbursed, $17,984 was not yet paid to program beneficiaries. Cause: Financial management system is not adequate to track grant funds and expenses from source document to grant reimbursement. Effect: Potential for over charging the grant for expenses not allocable to the program or charging the same expense to multiple funding sources. Identification as repeat finding, if applicable: Not Applicable Recommendation: We recommend that the Organization track grant funds through a general ledger project designation to provide an audit trail from source document to grant revenue and allowable grant expenditures. We also recommend that the program beneficiaries be paid or the funds reimbursed be returned to the SBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Criteria or specific requirement: 2 CFR 200.302(b)(3) indicates that records that adequately identify the source and application of funds for federally funded activities are necessary. 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. Condition: Expenditures originally reported on Schedule of Expenditures of Federal Awards for the year ended December 31, 2021 were understated. In the fiscal year ended December 31, 2022, $1,389,172 of prior year expenditures associated with the Medicaid Cluster were included in the schedule of expenditures of federal awards. Questioned costs: None Context: Expenditures reported on the Schedule of Expenditures of Federal Awards for Assistance Listing Number 93.778 were understated by $ 1,389,172. Cause: Pueblo County?s SEFA reconciliation process inadvertently missed the complete population of expenditures. Effect: Expenditures reported on Schedule of Expenditures of Federal Awards were understated for the year ended December 31, 2021. Repeat Finding: No. Recommendation: CLA recommends the County implement tracking procedures to ensure all federal expenditures are reported on the Schedule of Expenditures of Federal Awards. Views of responsible officials: There is no disagreement with the audit finding.
Criteria or specific requirement: 2 CFR 200.302(b)(3) indicates that records that adequately identify the source and application of funds for federally funded activities are necessary. 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. Condition: Expenditures originally reported on Schedule of Expenditures of Federal Awards for the year ended December 31, 2021 were understated. In the fiscal year ended December 31, 2022, $1,389,172 of prior year expenditures associated with the Medicaid Cluster were included in the schedule of expenditures of federal awards. Questioned costs: None Context: Expenditures reported on the Schedule of Expenditures of Federal Awards for Assistance Listing Number 93.778 were understated by $ 1,389,172. Cause: Pueblo County?s SEFA reconciliation process inadvertently missed the complete population of expenditures. Effect: Expenditures reported on Schedule of Expenditures of Federal Awards were understated for the year ended December 31, 2021. Repeat Finding: No. Recommendation: CLA recommends the County implement tracking procedures to ensure all federal expenditures are reported on the Schedule of Expenditures of Federal Awards. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: 2 CFR 200.303 includes requirements related to internal controls for federal award programs, including that the Organization must, among other things, ?establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.? These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)?. Additionally, Uniform Guidance requires non-Federal entities receiving Federal funds to have certain written policies, procedures, and standards of conduct (policies) in place. Condition and Context: The Organization has been administering the federal award for over a decade and has hired knowledgeable programmatic staff who have created an environment which understands the mission and purpose of the program. These individuals have not adequately documented their policies and procedures to fully establish an appropriate system of internal control over compliance. This includes a lack of required written policies as well as inadequate documentation of routine control functions such as those items noted in 2022-002 below. The lack of written policies includes required policies under Uniform Guidance sections ?200.302 (b)(6), ?200.302 (b)(7), ?200.305 (b), ?200.319 (c)(1), ?200.319 (c)(2) and ?200.320 (d)(3). Cause and Effect: The lack of appropriate controls and documentation to support processes surrounding the use of federal funds may result in undetected or uncorrected misstatements or instances of noncompliance. The lack of adequate documentation resulted in finding 2022-002 below. Additionally, as the policies referenced above are not written, the Organization cannot be in compliance with the requirements. Recommendation: The Organization should consider implementing policies, procedures, and internal controls specific to federal awards. Policies should be implemented for all applicable compliance requirements, ensuring that there is appropriate documentation to support the controls taking place. We recommend the policies noted above be written by the Organization, approved by the Board of Directors, and included in the permanent files of the Organization. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the recommendation and has implemented their corrective actions as of the date the financial statements were available for issuance.
2022-001 Financial Management of Federal Awards ? Department of Health and Human Services Passed Through Research Foundation For Mental Hygiene, Inc. Opiod STR AL 93.788 ? Department of Health and Human Services Passed Through NYS OASAS Block Grants for Prevention and Treatment of Substance Abuse AL 93.959 ? Department of Health and Human Services Drug-Free Communities Support Program Grants AL 93.276 Criteria: 2CFR 200.302(b)(1) requires that entities must identify in its accounts all Federal awards received and expended, as well as the Federal programs under which they are received. Federal program and award identification must include, as applicable, the Assistance Listing program title and number, the Federal award identification number and year, the name of the Federal agency and the name of the pass-through entity. 2CFR 200.303 states that entities must establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the awards are managed in compliance with statutes, regulations, and the terms and conditions of the award. Condition: The Council was not aware that the funds received under the above named grants were Federal awards and subject to the Uniform Guidance. The identification of the grant funds as Federal and the need for a Single Audit was made by the auditor engaged to perform the audit of the financial statements. There was no internal controls in place surrounding proper identification or management of Federal funding. Cause: This a new source of funding for the Council and they have not previously had experience with Single Audits or Federal requirements. Effect: If a grant recipient is not aware that funds received are Federal funds, there is a potential that they will not meet the various Federal requirements applicable to the program. This includes establishing and maintaining effective internal controls over the award, and complying with the federal statutes, regulations, terms and conditions of the awards. They will not be aware of the potential Single Audit requirement. Context: Some of the awards received were passed-through from other agencies so the initial source was not clear. Recommendation: We recommend that the Council establish a system for identifying the source of all grants. If there are Federal grants, they should educate themselves regarding the Uniform Guidance and the specific requirements of the program.
2022-001 Financial Management of Federal Awards ? Department of Health and Human Services Passed Through Research Foundation For Mental Hygiene, Inc. Opiod STR AL 93.788 ? Department of Health and Human Services Passed Through NYS OASAS Block Grants for Prevention and Treatment of Substance Abuse AL 93.959 ? Department of Health and Human Services Drug-Free Communities Support Program Grants AL 93.276 Criteria: 2CFR 200.302(b)(1) requires that entities must identify in its accounts all Federal awards received and expended, as well as the Federal programs under which they are received. Federal program and award identification must include, as applicable, the Assistance Listing program title and number, the Federal award identification number and year, the name of the Federal agency and the name of the pass-through entity. 2CFR 200.303 states that entities must establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the awards are managed in compliance with statutes, regulations, and the terms and conditions of the award. Condition: The Council was not aware that the funds received under the above named grants were Federal awards and subject to the Uniform Guidance. The identification of the grant funds as Federal and the need for a Single Audit was made by the auditor engaged to perform the audit of the financial statements. There was no internal controls in place surrounding proper identification or management of Federal funding. Cause: This a new source of funding for the Council and they have not previously had experience with Single Audits or Federal requirements. Effect: If a grant recipient is not aware that funds received are Federal funds, there is a potential that they will not meet the various Federal requirements applicable to the program. This includes establishing and maintaining effective internal controls over the award, and complying with the federal statutes, regulations, terms and conditions of the awards. They will not be aware of the potential Single Audit requirement. Context: Some of the awards received were passed-through from other agencies so the initial source was not clear. Recommendation: We recommend that the Council establish a system for identifying the source of all grants. If there are Federal grants, they should educate themselves regarding the Uniform Guidance and the specific requirements of the program.
2022-001 Financial Management of Federal Awards ? Department of Health and Human Services Passed Through Research Foundation For Mental Hygiene, Inc. Opiod STR AL 93.788 ? Department of Health and Human Services Passed Through NYS OASAS Block Grants for Prevention and Treatment of Substance Abuse AL 93.959 ? Department of Health and Human Services Drug-Free Communities Support Program Grants AL 93.276 Criteria: 2CFR 200.302(b)(1) requires that entities must identify in its accounts all Federal awards received and expended, as well as the Federal programs under which they are received. Federal program and award identification must include, as applicable, the Assistance Listing program title and number, the Federal award identification number and year, the name of the Federal agency and the name of the pass-through entity. 2CFR 200.303 states that entities must establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the awards are managed in compliance with statutes, regulations, and the terms and conditions of the award. Condition: The Council was not aware that the funds received under the above named grants were Federal awards and subject to the Uniform Guidance. The identification of the grant funds as Federal and the need for a Single Audit was made by the auditor engaged to perform the audit of the financial statements. There was no internal controls in place surrounding proper identification or management of Federal funding. Cause: This a new source of funding for the Council and they have not previously had experience with Single Audits or Federal requirements. Effect: If a grant recipient is not aware that funds received are Federal funds, there is a potential that they will not meet the various Federal requirements applicable to the program. This includes establishing and maintaining effective internal controls over the award, and complying with the federal statutes, regulations, terms and conditions of the awards. They will not be aware of the potential Single Audit requirement. Context: Some of the awards received were passed-through from other agencies so the initial source was not clear. Recommendation: We recommend that the Council establish a system for identifying the source of all grants. If there are Federal grants, they should educate themselves regarding the Uniform Guidance and the specific requirements of the program.
FINDING 2022-004 ? CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS - REPORTING Federal Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN Number: 21.027) Federal Agency: Department of Treasury Federal Award Number (or Other Identifying Number): N/A Pass-Through Entity: State Budget Agency Audit Finding: Significant Deficiency Criteria: 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following: (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in ?? 200.328 Financial reporting . . . ." 34 CFR 76.722 states: "A State may require a subgrantee to submit reports in a manner and format that assists the State in complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities under the program." Condition: During testing, we noted the County did not have a review control in place to ensure accuracy and completeness of the quarterly reporting requirements. Questioned Cost: None.Context: There was no documented review by someone other than the preparers of the Project and Expenditure Report to ensure the information submitted was accurate and complete. The reports are prepared and submitted by the County Attorney without secondary review. As a result, one of the quarterly reports selected for testing, out of a sample of two reports, was overstated by $247,770 in one period due to improper inclusion of an expenditure made in a subsequent month. This timing error was corrected on the next quarterly support and similar errors were not identified in subsequent quarters. Final reporting of total expenditures was accurate. Effect: The failure to establish an effective internal control system placed the County at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the program. Cause: Management had not developed a system of internal control that would have ensured compliance with the grant agreement and the compliance requirements listed above for the full period under audit. Repeat Finding: No. Recommendation: We recommended that the County's management establish a system of internal control to ensure compliance with the grant agreement and the compliance requirements listed above. We recommend an individual other than the County Attorney perform a documented review of the report prior to submission. Views of Responsible Officials: Management concurs with this finding. See the corrective action plan.
Finding 2022-002: Year-End Closing Information on the Federal Programs: 93.070 Criteria: In accordance with CFR 200.302 the financial management system of each non-Federal entity must provide for effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: At the commencement of the audit, we noted certain schedules included variances from the trial balance. We posted three entries resulting in a net decrease to net income of $38,647. Cause: Certain accounts and schedules had not been fully reconciled prior to the commencement of the audit. Effect or Potential Effect: Effective year-end closing procedures are important to avoid potential loss of Federal funds. Questioned Costs: Undetermined Context: APC's closing process did not identify some changes necessary. Identification as a Repeat Finding: N/A Recommendation: We recommend that APC pay additional attention to the closing process to ensure that all accounts are reconciled in advance of the audit. Review and approval procedures should be in place to ensure that errors are detected. We recommend that approval of key reconciliations be documented.
Finding 2022-002: Year-End Closing Information on the Federal Programs: 93.070 Criteria: In accordance with CFR 200.302 the financial management system of each non-Federal entity must provide for effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: At the commencement of the audit, we noted certain schedules included variances from the trial balance. We posted three entries resulting in a net decrease to net income of $38,647. Cause: Certain accounts and schedules had not been fully reconciled prior to the commencement of the audit. Effect or Potential Effect: Effective year-end closing procedures are important to avoid potential loss of Federal funds. Questioned Costs: Undetermined Context: APC's closing process did not identify some changes necessary. Identification as a Repeat Finding: N/A Recommendation: We recommend that APC pay additional attention to the closing process to ensure that all accounts are reconciled in advance of the audit. Review and approval procedures should be in place to ensure that errors are detected. We recommend that approval of key reconciliations be documented.
FINDING 2022-003 Subject: Water and Waste Disposal Systems for Rural Communities - Reporting Federal Agency: Department of Agriculture Federal Program: Water and Waste Disposal Systems for Rural Communities Assistance Listings Number: 10.760 Federal Award Number and Year (or Other Identifying Number): CY 2020 Compliance Requirement: Reporting Audit Findings: Material Weakness, Modified Opinion Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2021-004. Condition and Context The Town had not designed or implemented adequate internal controls and procedures to ensure that reports were prepared, accurate, and submitted in accordance with the applicable compliance requirements for the federal grant. The United States Department of Agriculture (USDA) requires the following two financial reports be submitted annually: 1. Statement of Budget, Income and Equity, (Form RD 442-2) 2. Balance Sheet (Form RD 442-3) The Form RD 442-2 covers financial operations relating to the borrower's water or waste disposal project. The Form RD 442-3 presents the financial status of the borrower's water or waste disposal project. In both instances, a borrower may submit the financial data on other forms, provided the forms are in a similar format and signed and dated by the organization's official to certify the correctness of the information. Alternatively, an annual audit may be submitted in lieu of the forms. The Town was required to file each report, as noted above, during the audit period. Both reports were selected for testing. Per inquiry with the Town and review of its records, the Town attempted to prepare Form RD 442-2; however, the report was never completed, nor was it filed with the appropriate authorities. Additionally, the Town did not file or even attempt to prepare Form RD 442-3. Neither alternative reports nor a financial statement were submitted to the USDA in lieu of the forms. The lack of internal controls and noncompliance were systemic issues, which occurred throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following . . . (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in ?? 200.328 and 200.329. . . ." 7 CFR 1780.47 states in part: "Borrower accounting methods, management reporting and audits. . . . (e) Borrowers exempt from audits. All borrowers who are exempt from audits, will, within 60 days following the end of each fiscal year, furnish the RUS with annual financial statements, consisting of a verification of the organization's balance sheet and statement of income and expense by an appropriate official of the organization. Forms RD 442-2, 'Statement of Budget, Income and Equity,' and 442-3 may be used. (f) Management reports. These reports will furnish management with a means of evaluating prior decisions and serve as a basis for planning future operations and financial strategies. In those cases where revenues from multiple sources are pledged as security for an RUS loan, two reports will be required; one for the project being financed by RUS and one combining the entire operation of the borrower. In those cases where RUS loans are secured by general obligation bonds or assessments and the borrower combines revenues from all sources, one management report combining all such revenues is acceptable. The following management data will be submitted by the borrower to the processing office. These reports at a minimum will include a balance sheet and income and expense statement. . . . (2) Annual management reports. Prior to the beginning of each fiscal year the following will be submitted to the processing office. (If Form RD 442-2 is used as the annual management report, enter data in column three only of Schedule 1, and complete all of Schedule 2.) (i) Two copies of the management reports and proposed 'Annual Budget.' (ii) Financial information may be reported on Form RD 442-2 which includes Schedule 1, 'Statement of Budget, Income and Equity' and Schedule 2, 'Projected Cash Flow' or information in similar format. (iii) A copy of the rate schedule in effect at the time of submission. (g) Substitute for management reports. When RUS loans are secured by the general obligation of the public body or tax assessments which total 100 percent of the debt service requirements, the State program official may authorize an annual audit to substitute for other management reports if the audit is received within nine months after the end of the audit period." Cause A proper system of internal controls was not designed by management of the Town. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the Town's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, required reports were not filed with the USDA. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the Town. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the Town establish a proper system of internal controls and develop policies and procedures to ensure required reports, or allowable alternatives are completed and filed with the USDA. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2022-007 Subject: CDBG - Entitlement Grants Cluster - Reporting Federal Agency: Department of Housing and Urban Development Federal Programs: Community Development Block Grants/Entitlement Grants, COVID-19 - Community Development Block Grants/Entitlement Grants Assistance Listings Number: 14.218 Federal Award Numbers and Years (or Other Identifying Numbers): B-19-MC-18-0015, B-20-MC-20-0015, B-20-MW-18-0015, B-21-MC-18-0015, B-22-MC-18-0015 Compliance Requirement: Reporting Audit Findings: Material Weakness, Modified Opinion Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2021-004. Condition and Context Financial Reporting For each CDBG award, the City is required to submit financial reports to Housing and Urban Development (HUD). The financial reports to be submitted are a quarterly CDBG Cash on Hand (PR29) report and an annual CDBG Financial Summary (PR26). The Community Development Specialist prepared the annual PR26 and quarterly PR29 reports without evidence of a review or an approval process to ensure accuracy of the reports submitted. During the audit period, there were three PR26 reports and six PR29 reports due. Four reports were selected for testing, two PR26 reports and two PR29 reports. One of the two PR26 reports was not supported by the City's records, and one of the two PR29 reports contained errors when reporting cash on hand. Performance Reporting The City is required to enter HUD 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low-Income Persons report (Section 3) activities on the closeout screens in the Integrated Disbursement and Information System (IDIS), as well as within the Consolidated Annual Performance and Evaluation Report (CAPER). The Section 3 report was not submitted on the closeout screens in the IDIS as part of the closeout process. The City did submit the Section 3 information within the CAPER; however, the Section 3 information was not supported by the City's records. The City was not able to provide documentation supporting the Section 3 information in the CAPER. Special Reporting for Federal Funding Accountability and Transparency Act (FFATA) Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282) (Transparency Act), recipients (i.e., direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through the FSRS. INDIANA STATE BOARD OF ACCOUNTS 28 CITY OF ELKHART SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) There were two subawards that required submission in the FSRS during the audit period. The due date for the information was August 31, 2022, and November 30, 2022, respectively. The information was completed and submitted by the City; however, there was no documentation of the review or oversight process in place to ensure the accuracy of the information submitted. (See Report PDF for Schedule.) The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following: . . . (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in ?? 200.328 and 200.329. . . ." Cause A proper system of internal controls was not designed by management of the City. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the City's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, required reports were not accurate nor submitted timely. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the City. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the City design and implement a proper system of internal control, including policies and procedures that would provide segregation of duties to ensure required reports are submitted timely and accurately. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2022-007 Subject: CDBG - Entitlement Grants Cluster - Reporting Federal Agency: Department of Housing and Urban Development Federal Programs: Community Development Block Grants/Entitlement Grants, COVID-19 - Community Development Block Grants/Entitlement Grants Assistance Listings Number: 14.218 Federal Award Numbers and Years (or Other Identifying Numbers): B-19-MC-18-0015, B-20-MC-20-0015, B-20-MW-18-0015, B-21-MC-18-0015, B-22-MC-18-0015 Compliance Requirement: Reporting Audit Findings: Material Weakness, Modified Opinion Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2021-004. Condition and Context Financial Reporting For each CDBG award, the City is required to submit financial reports to Housing and Urban Development (HUD). The financial reports to be submitted are a quarterly CDBG Cash on Hand (PR29) report and an annual CDBG Financial Summary (PR26). The Community Development Specialist prepared the annual PR26 and quarterly PR29 reports without evidence of a review or an approval process to ensure accuracy of the reports submitted. During the audit period, there were three PR26 reports and six PR29 reports due. Four reports were selected for testing, two PR26 reports and two PR29 reports. One of the two PR26 reports was not supported by the City's records, and one of the two PR29 reports contained errors when reporting cash on hand. Performance Reporting The City is required to enter HUD 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low-Income Persons report (Section 3) activities on the closeout screens in the Integrated Disbursement and Information System (IDIS), as well as within the Consolidated Annual Performance and Evaluation Report (CAPER). The Section 3 report was not submitted on the closeout screens in the IDIS as part of the closeout process. The City did submit the Section 3 information within the CAPER; however, the Section 3 information was not supported by the City's records. The City was not able to provide documentation supporting the Section 3 information in the CAPER. Special Reporting for Federal Funding Accountability and Transparency Act (FFATA) Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282) (Transparency Act), recipients (i.e., direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through the FSRS. INDIANA STATE BOARD OF ACCOUNTS 28 CITY OF ELKHART SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) There were two subawards that required submission in the FSRS during the audit period. The due date for the information was August 31, 2022, and November 30, 2022, respectively. The information was completed and submitted by the City; however, there was no documentation of the review or oversight process in place to ensure the accuracy of the information submitted. (See Report PDF for Schedule.) The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following: . . . (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in ?? 200.328 and 200.329. . . ." Cause A proper system of internal controls was not designed by management of the City. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the City's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, required reports were not accurate nor submitted timely. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the City. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the City design and implement a proper system of internal control, including policies and procedures that would provide segregation of duties to ensure required reports are submitted timely and accurately. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Finding No. 2022-003 ? Lacking Certifications for Direct Assistance Provided to Individuals Federal Agency: Department of Education Department of the Treasury Federal Program: 84.235 Rehabilitation Services Demonstration and Training Program 21.023 Emergency Rental Assistance Type of Finding: Material Weakness in Internal Control over Compliance Finding: Internal control processes of over compliance did not ensure all client certification forms for federal assistance received were signed by tenants or completed in their entirety. Criteria: Per guidance in 2 CFR 200.302: The non-federal entity?s financial management systems, including records documenting compliance with federal statutes must be sufficient to permit the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the terms and conditions of the federal award. Condition and context: The Organization did not obtain a certification of actual final rent amounts received by landlords or tenants for total rent assistance payments received under the Emergency Rental Assistance program. The rent assistance accounting forms that were used by management included a tenant signature line, which would have provided a certification of the total amount of assistance provided, but no signatures were present on any of the forms tested. The Organization also did not obtain a certification acknowledging receipt of gift card funds from 12 of 25 gift card program recipients tested for the Rehabilitation Services Demonstration and Training Program. Sample Size and Population: We selected 6 rent assistance payments out of a population of 27 payments made under the Emergency Rental Assistance program during 2022. We selected 25 of 45 gift cards funded by the Rehabilitation Services Demonstration and Training Program during 2022. Cause: The Organization?s internal controls over obtaining certifications from federal award program recipients were not designed to ensure all recipients document their attestation as to the amount and date of funds received. Effect: The lack of controls over documentation of federal funds received could result in funds being distributed to ineligible individuals for federal assistance, or fraudulent use of funds. In addition, landlords receiving assistance for multiple months? future rents could charge tenants in duplicate for certain months? rents. Questioned Costs: $357 Recommendation: Management and those charged with governance should consider increasing the controls around the disbursement of funds to clients in the form of direct assistance via gift cards or check payments, and particularly obtaining and retaining signatures or adequate similar documentation directly from recipients for each disbursement received. Views of Management and Corrective Action Plan: Management?s response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Ginger Kwan, Executive Director
Finding No. 2022-003 ? Lacking Certifications for Direct Assistance Provided to Individuals Federal Agency: Department of Education Department of the Treasury Federal Program: 84.235 Rehabilitation Services Demonstration and Training Program 21.023 Emergency Rental Assistance Type of Finding: Material Weakness in Internal Control over Compliance Finding: Internal control processes of over compliance did not ensure all client certification forms for federal assistance received were signed by tenants or completed in their entirety. Criteria: Per guidance in 2 CFR 200.302: The non-federal entity?s financial management systems, including records documenting compliance with federal statutes must be sufficient to permit the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the terms and conditions of the federal award. Condition and context: The Organization did not obtain a certification of actual final rent amounts received by landlords or tenants for total rent assistance payments received under the Emergency Rental Assistance program. The rent assistance accounting forms that were used by management included a tenant signature line, which would have provided a certification of the total amount of assistance provided, but no signatures were present on any of the forms tested. The Organization also did not obtain a certification acknowledging receipt of gift card funds from 12 of 25 gift card program recipients tested for the Rehabilitation Services Demonstration and Training Program. Sample Size and Population: We selected 6 rent assistance payments out of a population of 27 payments made under the Emergency Rental Assistance program during 2022. We selected 25 of 45 gift cards funded by the Rehabilitation Services Demonstration and Training Program during 2022. Cause: The Organization?s internal controls over obtaining certifications from federal award program recipients were not designed to ensure all recipients document their attestation as to the amount and date of funds received. Effect: The lack of controls over documentation of federal funds received could result in funds being distributed to ineligible individuals for federal assistance, or fraudulent use of funds. In addition, landlords receiving assistance for multiple months? future rents could charge tenants in duplicate for certain months? rents. Questioned Costs: $357 Recommendation: Management and those charged with governance should consider increasing the controls around the disbursement of funds to clients in the form of direct assistance via gift cards or check payments, and particularly obtaining and retaining signatures or adequate similar documentation directly from recipients for each disbursement received. Views of Management and Corrective Action Plan: Management?s response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Ginger Kwan, Executive Director