Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
FINDING 2022-002 Subject: Child Support Enforcement - Allowable Costs/Cost Principles Federal Agency: Department of Health and Human Services Federal Program: Child Support Enforcement Assistance Listings Number: 93.563 Federal Award Number and Year (or Other Identifying Number): FY2022 Pass-Through Entity: Indiana Department of Child Services Compliance Requirement: Allowable Costs/Cost Principles Audit Findings: Material Weakness, Noncompliance Condition and Context Indirect costs are expenses that are incurred by other County offices, which indirectly benefit the County Title IV-D offices. Indirect expenses are allocated to the County Title IV-D offices through an indirect Cost Allocation Plan (CAP) which is submitted to the Department of Child Services' Child Support Bureau. Indirect costs charged are based on two-year prior expenditures; therefore, indirect costs charged in 2022 were based on expenditures from 2020. A sample of 25 expenditures, totaling $27,077, from the department cost pools from the CAP were selected for testing. For 1 of the 25 expenditures examined, the County was unable to provide the contract; therefore, we were unable to verify if the correct rate for the contract payment was charged. For an additional 2 contracts requested, the contract could not be provided at the initial time of request. The contracts were provided nine months later at which time we verified the contract payment charged. In addition, the County did not have written procedures for determining the allowability of costs in accordance with Subpart E of 2 CFR 200. The lack of effective 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 200.403 states in part: "Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: (a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles. (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items . . . (g) Be adequately documented. . . ." 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following: . . . (7) Written procedures for determining the allowability of costs in accordance with subpart E of this part and the terms and conditions of the Federal award." Cause A proper system of internal controls over child support enforcement expenditures was not designed by management of the County. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the County'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, expenses within the cost application plan could not be verified as accurate. 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 County. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the County establish a proper system of internal controls and develop policies and procedures to ensure that costs included within the cost allocation plan have adequate supporting documentation to support the amount paid. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report. Auditor's Response Sufficient, appropriate audit evidence in regard to supplement not supplant was determined to not have been obtained at the initial time of audit. As such, additional audit procedures were performed after the report date of September 29, 2023. The missing contracts were a part of the original report which was discussed and communicated to management on September 29, 2023. Contracts were not provided in September, nor was there a disagreement with this portion of the finding in the original corrective action plan provided by management. Documentation provided in June 2024 was unsolicited but was reviewed, and the issue noted in the finding was updated accordingly. While we agree two of the three contracts could be reviewed and verified once provided in June 2024, the third contract is still in question as noted in the finding.
Finding 2022-003: Reconciliation of Accounts Federal Program: Research and Development Cluster (Education and Human Resources) Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: 1500529 (9/1/2015 – 8/31/2022), 1640791 (9/15/2016 – 8/31/2022) Federal Program: Research and Development Cluster (Mathematical and Physical Sciences) Material Weakness in Internal Control over Compliance, Material Noncompliance Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244 in total. Assistance listing number 47.076. Of this amount, $62,403 applies to award ID 1505278, which was closed before 1/1/2022 and did not have expenses or drawdowns in 2022 but by the end of 2018 had $138,034 in federal funding provided to AAPT and $75,631 of reimbursable expenses. AAPT had not refunded the overpayment, such as by applying this $62,403 as a reduction in federal reimbursements drawn during 2022. The remaining amounts of $10,112, $8,307, $33,615, and $807 relate to award IDs 1812860, 1524963, 1500529, and 1640791, respectively, and were calculated in the same manner. The period of performance for award IDs 1812860 and 1524963 ended prior to 1/1/2022. The period of performance for award IDs 1500529 and 1640791 ended on 8/31/2022. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 10/15/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Federal Program: Research and Development Cluster (Education and Human Resources) Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: 1500529 (9/1/2015 – 8/31/2022), 1640791 (9/15/2016 – 8/31/2022) Federal Program: Research and Development Cluster (Mathematical and Physical Sciences) Material Weakness in Internal Control over Compliance, Material Noncompliance Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244 in total. Assistance listing number 47.076. Of this amount, $62,403 applies to award ID 1505278, which was closed before 1/1/2022 and did not have expenses or drawdowns in 2022 but by the end of 2018 had $138,034 in federal funding provided to AAPT and $75,631 of reimbursable expenses. AAPT had not refunded the overpayment, such as by applying this $62,403 as a reduction in federal reimbursements drawn during 2022. The remaining amounts of $10,112, $8,307, $33,615, and $807 relate to award IDs 1812860, 1524963, 1500529, and 1640791, respectively, and were calculated in the same manner. The period of performance for award IDs 1812860 and 1524963 ended prior to 1/1/2022. The period of performance for award IDs 1500529 and 1640791 ended on 8/31/2022. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 10/15/2024 Responsible Official: Michael Brosnan, CFO
FINDING 2022-003 Subject: CDBG - Entitlement Grants Cluster - Program Income Federal Agency: Department of Housing and Urban Development Federal Program: Community Development Block Grants/Entitlement Grants Assistance Listings Number: 14.218 Federal Award Numbers and Years (or Other Identifying Numbers): B-11-UN-18-0002, B-17-UC-18-0016, B-18-UC-18-0016, B-19-UC-18-0016, B-20-UC-18-0016, B-21-UC-18-0016 Compliance Requirement: Program Income Audit Findings: Material Weakness, Modified Opinion Condition and Context The County received program income through various loan programs it offered to qualifying individuals. Once the County received a loan payment, the receipt was posted into the financial accounting system of the County and recorded in a grant fund. The amount received was also to be recorded in the Department of Housing and Urban Development's (HUD) Integrated Disbursement and Information System (IDIS) website. The recorded program income in the IDIS would then appear on the Drawdown Report by Voucher Number report (PR07). One individual was responsible for notifying the County Auditor's office when program income money was received, so it could be receipted in the County's financial accounting system. The same individual was also responsible for reporting the information on the IDIS site. No internal controls were established to ensure the program income that was recorded in the financial accounting system was also reported on the IDIS site and the PR07 report. Four receipts totaling $38,960 were selected for testing from the County's receipt ledger. The four receipts were unable to be located on the PR07 report provided for audit. However, one of the four receipts was recorded in the IDIS system after information regarding the receipt was requested. In addition, we were unable to verify the total amount recorded in the receipt ledger to the total reported on the PR07 report. The County's ledger was greater than the PR07 report by $30,324 and is primarily attributed to under reporting of program income in the IDIS as identified above. 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). . . ." INDIANA STATE BOARD OF ACCOUNTS 21 LAKE COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 2 CFR 200.1 states in part: ". . . Internal controls for non-Federal entities means: (1) Processes designed and implemented by non-Federal entities to provide reasonable assurance regarding the achievement of objectives in the following categories: (i) Effectiveness and efficiency of operations; (ii) Reliability of reporting for internal and external use; . . ." 2 CFR 200.302 states in part: "(a) Each state must expend and account for the Federal award in accordance with state laws and procedures for expending and accounting for the state's own funds. In addition, the state's and the other non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. . . . (b) The financial management system of each non-Federal entity must provide for the following: . . . (3) Records that identify adequately the source and application of funds for federallyfunded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. . . ." 24 CFR 570.504 states in part: "(a) Recording program income. The receipt and expenditure of program income as defined in § 570.500(a) shall be recorded as part of the financial transactions of the grant program. (b) Disposition of program income received by recipients. (1) Program income received before grant closeout may be retained by the recipient if the income is treated as additional CDBG funds subject to all applicable requirements governing the use of CDBG funds. (2) If the recipient chooses to retain program income, that program income shall be disposed of as follows: (i) Program income in the form of repayments to, or interest earned on, a revolving fund as defined in § 570.500(b) shall be substantially disbursed from the fund before additional cash withdrawals are made from the U.S. Treasury for the same activity. (This rule does not prevent a lump sum disbursement to finance the rehabilitation of privately owned properties as provided for in § 570.513.) (ii) Substantially all other program income shall be disbursed for eligible activities before additional cash withdrawals are made from the U.S. Treasury. . . ." INDIANA STATE BOARD OF ACCOUNTS 22 LAKE COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Cause A turnover of staff in the County's Community Development office, and management not ensuring that a system of internal controls that segregated key functions was designed, implemented, and operating effectively, contributed to the program income issue identified above. Effect Without the proper implementation of an effectively designed system of internal controls, the County could not ensure that program income was properly reported and used before the drawdown of federal funds as required. The County could be at risk of losing federal funds by the federal awarding agency due to noncompliance with federal regulations. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the management of the County establish a system of internal controls to ensure that all program income received is properly reported in the IDIS system and expended prior to drawing down federal awards. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Finding 2022-003 Inaccurate SEFA – Reporting – Material Weakness Name of Federal Agency: U.S Department of Housing and Urban Development Federal Program Name: HOME Investments Partnership Program and CDBG Entitlement Grants Cluster Assistance Listing Number: 14.239 and 14.218 Federal Award Identification Number and Year: Identification number unavailable. Program years 2010, 2012, 2015, 2019, 2020, 2022. Name of Pass-through Entity (if applicable): Rhode Island Housing and Mortgage Finance Corporation and the City of Providence, Rhode Island. Criteria: In accordance with 2 CFR 200.302 (Financial Management), a grant recipient’s financial management system must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. In addition, 2 CFR 200.510 (Financial Statements), states in part that the auditee must prepare a schedule of expenditures of Federal awards (“SEFA”) for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2CFR 200.502. At a minimum, the schedule must include: -All individual Federal programs by Federal agency. -For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. -Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. -Include the total amount provided to subrecipients from each Federal program. Condition / Context: The Organization management’s review and approval process did not detect the errors that were identified during the audit procedures performed. The errors detected consisted of the understatement of Federal Assistance Listing Numbers 14.239 and 14.218 in the amounts of $1,260,748 and $295,000, respectively, for a total understatement of $1,555,748. Cause: The Organization’s internal controls over the preparation and review of the SEFA were not operating effectively. Material audit adjustments were proposed during the course of the audit that lead to material changes to the SEFA. Effect or Potential Effect: Inadequate controls over the preparation of the SEFA could result in financial misstatements or potential noncompliance. Questioned Costs: None Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Organization strengthen its policies, procedures, and controls for the identification of federal awards to ensure a complete and accurate SEFA is prepared in a timely manner. Views of Responsible Officials: Management agrees with the finding and is in the process of revising internal controls to address SEFA preparation.
Finding 2022-003 Inaccurate SEFA – Reporting – Material Weakness Name of Federal Agency: U.S Department of Housing and Urban Development Federal Program Name: HOME Investments Partnership Program and CDBG Entitlement Grants Cluster Assistance Listing Number: 14.239 and 14.218 Federal Award Identification Number and Year: Identification number unavailable. Program years 2010, 2012, 2015, 2019, 2020, 2022. Name of Pass-through Entity (if applicable): Rhode Island Housing and Mortgage Finance Corporation and the City of Providence, Rhode Island. Criteria: In accordance with 2 CFR 200.302 (Financial Management), a grant recipient’s financial management system must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. In addition, 2 CFR 200.510 (Financial Statements), states in part that the auditee must prepare a schedule of expenditures of Federal awards (“SEFA”) for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2CFR 200.502. At a minimum, the schedule must include: -All individual Federal programs by Federal agency. -For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. -Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. -Include the total amount provided to subrecipients from each Federal program. Condition / Context: The Organization management’s review and approval process did not detect the errors that were identified during the audit procedures performed. The errors detected consisted of the understatement of Federal Assistance Listing Numbers 14.239 and 14.218 in the amounts of $1,260,748 and $295,000, respectively, for a total understatement of $1,555,748. Cause: The Organization’s internal controls over the preparation and review of the SEFA were not operating effectively. Material audit adjustments were proposed during the course of the audit that lead to material changes to the SEFA. Effect or Potential Effect: Inadequate controls over the preparation of the SEFA could result in financial misstatements or potential noncompliance. Questioned Costs: None Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Organization strengthen its policies, procedures, and controls for the identification of federal awards to ensure a complete and accurate SEFA is prepared in a timely manner. Views of Responsible Officials: Management agrees with the finding and is in the process of revising internal controls to address SEFA preparation.
Finding 2022-003 Inaccurate SEFA – Reporting – Material Weakness Name of Federal Agency: U.S Department of Housing and Urban Development Federal Program Name: HOME Investments Partnership Program and CDBG Entitlement Grants Cluster Assistance Listing Number: 14.239 and 14.218 Federal Award Identification Number and Year: Identification number unavailable. Program years 2010, 2012, 2015, 2019, 2020, 2022. Name of Pass-through Entity (if applicable): Rhode Island Housing and Mortgage Finance Corporation and the City of Providence, Rhode Island. Criteria: In accordance with 2 CFR 200.302 (Financial Management), a grant recipient’s financial management system must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. In addition, 2 CFR 200.510 (Financial Statements), states in part that the auditee must prepare a schedule of expenditures of Federal awards (“SEFA”) for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2CFR 200.502. At a minimum, the schedule must include: -All individual Federal programs by Federal agency. -For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. -Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. -Include the total amount provided to subrecipients from each Federal program. Condition / Context: The Organization management’s review and approval process did not detect the errors that were identified during the audit procedures performed. The errors detected consisted of the understatement of Federal Assistance Listing Numbers 14.239 and 14.218 in the amounts of $1,260,748 and $295,000, respectively, for a total understatement of $1,555,748. Cause: The Organization’s internal controls over the preparation and review of the SEFA were not operating effectively. Material audit adjustments were proposed during the course of the audit that lead to material changes to the SEFA. Effect or Potential Effect: Inadequate controls over the preparation of the SEFA could result in financial misstatements or potential noncompliance. Questioned Costs: None Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Organization strengthen its policies, procedures, and controls for the identification of federal awards to ensure a complete and accurate SEFA is prepared in a timely manner. Views of Responsible Officials: Management agrees with the finding and is in the process of revising internal controls to address SEFA preparation.
Finding 2022-003 Inaccurate SEFA – Reporting – Material Weakness Name of Federal Agency: U.S Department of Housing and Urban Development Federal Program Name: HOME Investments Partnership Program and CDBG Entitlement Grants Cluster Assistance Listing Number: 14.239 and 14.218 Federal Award Identification Number and Year: Identification number unavailable. Program years 2010, 2012, 2015, 2019, 2020, 2022. Name of Pass-through Entity (if applicable): Rhode Island Housing and Mortgage Finance Corporation and the City of Providence, Rhode Island. Criteria: In accordance with 2 CFR 200.302 (Financial Management), a grant recipient’s financial management system must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. In addition, 2 CFR 200.510 (Financial Statements), states in part that the auditee must prepare a schedule of expenditures of Federal awards (“SEFA”) for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2CFR 200.502. At a minimum, the schedule must include: -All individual Federal programs by Federal agency. -For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. -Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. -Include the total amount provided to subrecipients from each Federal program. Condition / Context: The Organization management’s review and approval process did not detect the errors that were identified during the audit procedures performed. The errors detected consisted of the understatement of Federal Assistance Listing Numbers 14.239 and 14.218 in the amounts of $1,260,748 and $295,000, respectively, for a total understatement of $1,555,748. Cause: The Organization’s internal controls over the preparation and review of the SEFA were not operating effectively. Material audit adjustments were proposed during the course of the audit that lead to material changes to the SEFA. Effect or Potential Effect: Inadequate controls over the preparation of the SEFA could result in financial misstatements or potential noncompliance. Questioned Costs: None Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Organization strengthen its policies, procedures, and controls for the identification of federal awards to ensure a complete and accurate SEFA is prepared in a timely manner. Views of Responsible Officials: Management agrees with the finding and is in the process of revising internal controls to address SEFA preparation.
Condition: The organization does not have documented policies and procedures for several critical federal grant requirements, including: Allowable, reasonable, and allocable costs Tracking the period of performance Financial and performance reporting Key financial processes, such as disbursements, payroll, and grants management Criteria: 2 CFR 200.302 requires organizations to maintain written policies and procedures for financial management and compliance with federal regulations. Cause: The organization, being relatively new, has not prioritized developing these policies and procedures. Effect: The absence of formal guidance increases the risk of noncompliance and unallowable costs being charged to the federal grant. Recommendation: The organization should prioritize developing and implementing formal written policies and procedures for compliance with federal grant requirements. Questioned Costs: None Management’s Response: The organization has established financial policies and procedures. However, we recognize that these policies did not fully address all areas specific to federal grant requirements. As a relatively new organization, we understand the importance of enhancing these frameworks to ensure full compliance with federal guidelines and to properly manage federal funds. We are committed to addressing this gap and will take immediate action to develop and implement comprehensive policies and procedures that fully comply with all applicable federal grant requirements. We anticipate that this process will be completed within three months, with oversight from senior management to ensure its thoroughness and effectiveness. In addition, key financial processes, including disbursements, payroll, and grants management, will be updated and aligned with these new policies to ensure sound fiscal management and maintain ongoing compliance with federal standards.
Condition: The organization lacked documentation of processes for reconciling ERA program reports with the general ledger and trial balance, as well as management’s review and approval of these reconciliations. Criteria: 2 CFR 200.302(b)(5) requires entities to establish controls for ensuring accurate and complete financial reporting. Cause: The organization did not have processes in place for reconciling financial reports during the audit period. Effect: Without reconciliation, there is an increased risk of errors or discrepancies in financial reporting. Recommendation: Develop reconciliation procedures for program reports and ensure they are reviewed and approved by management. Questioned Costs: None Management’s Response: Management acknowledges the issue and will establish and document reconciliation procedures to ensure reports are consistent with the general ledger and trial balance for all future Federal programs. This includes periodic review and approval by management.
Information on the Federal Program(s): 10.760 Water and Waste Disposal Systems for Rural Communities, Department of Agriculture 14.228 Community Development Block Grants/State’s Program, Department of Housing and Urban Development Compliance Requirements: Cash Management. Type of Finding: Material Noncompliance. Criteria: 2 CFR § 200.302(b)(6) requires that each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR § 200.305 Payment. Condition: We noted that the City did not have written procedures to implement the requirements of 2 CFR § 200.305 Payment during fiscal year 2022. Cause: The City was not aware of the requirement to have written procedures to implement the requirements of 2 CFR § 200.305 Payment. Effect: Failure to have written procedures to ensure the compliance with the 2 CFR § 200.305 Payment could result in federal award drawdown requests by the City to be overstated as to immediate cash flow needs, noncompliance with Uniform Guidance requirements, and terms and conditions of the Federal award. Questioned Costs: There are no questioned costs. Recommendation: We recommend that the City identify grants that are subject to the Uniform Guidance on a timely basis to ensure all compliance requirements are met and develop written procedures where required. Views of Responsible Officials and Planned Corrective Action: The City has identified federal grants subject to the Uniform Guidance and will develop written procedures to implement the requirements of 2 CFR § 200.305 Payment.
Information on the Federal Program(s): 10.760 Water and Waste Disposal Systems for Rural Communities, Department of Agriculture 14.228 Community Development Block Grants/State’s Program, Department of Housing and Urban Development Compliance Requirements: Allowable Costs and Costs Principles. Type of Finding: Material Noncompliance. Criteria: 2 CFR § 200.302(b)(7) requires that each non-Federal entity must provide for written procedures for determining the allowability of costs in accordance with 2 CFR 200 Subpart E – Cost Principles and the terms and conditions of the Federal award. Condition: We noted that the City did not have written procedures for determining the allowability of costs and the terms and conditions of the Federal award during fiscal year 2022. Cause: The City was not aware of the requirement to have written procedures for determining the allowability of costs and the terms and conditions of the Federal award. Effect: Failure to have written procedures for determining allowability of costs and the terms and conditions of the Federal award could result in costs charged to the program that are not allowable costs as defined by the appropriate cost principles circular and noncompliance with Uniform Guidance requirements and terms and conditions of the Federal award. Questioned Costs: There are no questioned costs. Recommendation: We recommend that the City identify grants that are subject to Uniform Guidance on a timely basis to ensure all compliance requirements are met and develop written procedures where required. Views of Responsible Officials and Planned Corrective Action: The City has identified federal grants subject to the Uniform Guidance and will develop written procedures for determining the allowability of costs in accordance with 2 CFR 200, Subpart E—Cost Principles and the terms and conditions of the Federal award.
Information on the Federal Program(s): 10.760 Water and Waste Disposal Systems for Rural Communities, Department of Agriculture 14.228 Community Development Block Grants/State’s Program, Department of Housing and Urban Development Compliance Requirements: Cash Management. Type of Finding: Material Noncompliance. Criteria: 2 CFR § 200.302(b)(6) requires that each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR § 200.305 Payment. Condition: We noted that the City did not have written procedures to implement the requirements of 2 CFR § 200.305 Payment during fiscal year 2022. Cause: The City was not aware of the requirement to have written procedures to implement the requirements of 2 CFR § 200.305 Payment. Effect: Failure to have written procedures to ensure the compliance with the 2 CFR § 200.305 Payment could result in federal award drawdown requests by the City to be overstated as to immediate cash flow needs, noncompliance with Uniform Guidance requirements, and terms and conditions of the Federal award. Questioned Costs: There are no questioned costs. Recommendation: We recommend that the City identify grants that are subject to the Uniform Guidance on a timely basis to ensure all compliance requirements are met and develop written procedures where required. Views of Responsible Officials and Planned Corrective Action: The City has identified federal grants subject to the Uniform Guidance and will develop written procedures to implement the requirements of 2 CFR § 200.305 Payment.
Information on the Federal Program(s): 10.760 Water and Waste Disposal Systems for Rural Communities, Department of Agriculture 14.228 Community Development Block Grants/State’s Program, Department of Housing and Urban Development Compliance Requirements: Allowable Costs and Costs Principles. Type of Finding: Material Noncompliance. Criteria: 2 CFR § 200.302(b)(7) requires that each non-Federal entity must provide for written procedures for determining the allowability of costs in accordance with 2 CFR 200 Subpart E – Cost Principles and the terms and conditions of the Federal award. Condition: We noted that the City did not have written procedures for determining the allowability of costs and the terms and conditions of the Federal award during fiscal year 2022. Cause: The City was not aware of the requirement to have written procedures for determining the allowability of costs and the terms and conditions of the Federal award. Effect: Failure to have written procedures for determining allowability of costs and the terms and conditions of the Federal award could result in costs charged to the program that are not allowable costs as defined by the appropriate cost principles circular and noncompliance with Uniform Guidance requirements and terms and conditions of the Federal award. Questioned Costs: There are no questioned costs. Recommendation: We recommend that the City identify grants that are subject to Uniform Guidance on a timely basis to ensure all compliance requirements are met and develop written procedures where required. Views of Responsible Officials and Planned Corrective Action: The City has identified federal grants subject to the Uniform Guidance and will develop written procedures for determining the allowability of costs in accordance with 2 CFR 200, Subpart E—Cost Principles and the terms and conditions of the Federal award.
Information on the Federal Program(s): 10.760 Water and Waste Disposal Systems for Rural Communities, Department of Agriculture 14.228 Community Development Block Grants/State’s Program, Department of Housing and Urban Development Compliance Requirements: Cash Management. Type of Finding: Material Noncompliance. Criteria: 2 CFR § 200.302(b)(6) requires that each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR § 200.305 Payment. Condition: We noted that the City did not have written procedures to implement the requirements of 2 CFR § 200.305 Payment during fiscal year 2022. Cause: The City was not aware of the requirement to have written procedures to implement the requirements of 2 CFR § 200.305 Payment. Effect: Failure to have written procedures to ensure the compliance with the 2 CFR § 200.305 Payment could result in federal award drawdown requests by the City to be overstated as to immediate cash flow needs, noncompliance with Uniform Guidance requirements, and terms and conditions of the Federal award. Questioned Costs: There are no questioned costs. Recommendation: We recommend that the City identify grants that are subject to the Uniform Guidance on a timely basis to ensure all compliance requirements are met and develop written procedures where required. Views of Responsible Officials and Planned Corrective Action: The City has identified federal grants subject to the Uniform Guidance and will develop written procedures to implement the requirements of 2 CFR § 200.305 Payment.
Information on the Federal Program(s): 10.760 Water and Waste Disposal Systems for Rural Communities, Department of Agriculture 14.228 Community Development Block Grants/State’s Program, Department of Housing and Urban Development Compliance Requirements: Allowable Costs and Costs Principles. Type of Finding: Material Noncompliance. Criteria: 2 CFR § 200.302(b)(7) requires that each non-Federal entity must provide for written procedures for determining the allowability of costs in accordance with 2 CFR 200 Subpart E – Cost Principles and the terms and conditions of the Federal award. Condition: We noted that the City did not have written procedures for determining the allowability of costs and the terms and conditions of the Federal award during fiscal year 2022. Cause: The City was not aware of the requirement to have written procedures for determining the allowability of costs and the terms and conditions of the Federal award. Effect: Failure to have written procedures for determining allowability of costs and the terms and conditions of the Federal award could result in costs charged to the program that are not allowable costs as defined by the appropriate cost principles circular and noncompliance with Uniform Guidance requirements and terms and conditions of the Federal award. Questioned Costs: There are no questioned costs. Recommendation: We recommend that the City identify grants that are subject to Uniform Guidance on a timely basis to ensure all compliance requirements are met and develop written procedures where required. Views of Responsible Officials and Planned Corrective Action: The City has identified federal grants subject to the Uniform Guidance and will develop written procedures for determining the allowability of costs in accordance with 2 CFR 200, Subpart E—Cost Principles and the terms and conditions of the Federal award.
Federal Agency: United States Department of Commerce Federal Program Name: Office for Coastal Management Assistance Listing Number: 11.473 Federal Award Identification Year: 2020 Pass-Through Agency: National Fish and Wildlife Grant Agreement Award Period: 9/1/20-08/31/23 Type of Finding: Other Matters – Material Weakness in Internal Control Criteria: 2 CFR 200.414(c) - Federal award recipients must negotiate an indirect cost rate with the cognizant agency for indirect costs, which is typically the federal agency that provides the most funding to the recipient.2 CFR 200.403(d) - The negotiated rate must be applied consistently across all federal awards to ensure uniformity in cost allocation. 2 CFR 200.302(b)(3) - Recipients must maintain adequate documentation to support the indirect costs charged to federal awards, ensuring compliance with the cost principles outlined in the regulation. Condition: For two reimbursement requests from the grantor, an indirect cost rate was used, for which CSFC did not have a provisional or final rate agreement from the USDA. Context: Of the 2 reimbursements invoiced, 2 were selected for testing for the Office for Coastal Management program. The condition noted above was identified during our procedures over CFSC’s subrecipients. Effect: CFSC did not identify the error to be able to make the appropriate corrections before receiving reimbursement for incorrect indirect cost rate invoiced. Cause: CFSC’s procedures did not ensure that the negotiated provisional rate was invoiced properly. Repeat Finding: The finding is not a repeat finding. Recommendation: We recommend that CFSC modify and strengthen its current policies and procedures to perform review over the indirect cost rate utilized when submitting invoices to the grantor. Management’s Views: See separate corrective action plan.
Finding Number: 2022-003 Finding Type: Federal award finding and financial statement finding Federal Assistance Listing No.: 14.239 Program Name: HOME investment Partnership Program Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: Portland Housing Bureau Grant Numbers: 311020 Federal Award Year: 2022 Control Deficiency Type: Significant deficiency in internal controls over compliance Instance of Noncompliance: Yes Compliance Requirement: Reporting Questioned Costs: None Repeat Finding: No Criteria: 2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart D – Post Federal Awards Requirements, Standards for Financial and Program Management, and §200.302 (b), Financial Management. Identification, in its accounts, of all federal awards received and expended and the federal program under which they were received. Federal program and federal award identification must include, as applicable, the CFDA title and number, federal award identification number, name of the federal agency, and name of the pass-through entity, if any. Additional criteria: 2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart F – Audit Requirements, §200.510, Financial Statements. Schedule of Expenditures of Federal Awards – The auditee also must prepare a schedule of expenditures of federal awards for the period covered by the auditee’s financial statements, which must include the total federal awards expended, as determined in accordance with §200.502, Basis for Determining Federal Awards Expended. At a minimum, the schedule must provide total federal awards expended for each individual federal program and the CFDA number or other identifying number when the CFDA information is not available. For a cluster of programs, also provide the total for the cluster. Condition: During the audit, we noted that the organization did not maintain a complete schedule of expenditures of federal awards. Cause: The organization did not adequately track federal expenditures and the required information needed to prepare a schedule of expenditures of federal awards. Effect: Failure to prepare an accurate and complete schedule of expenditures of federal awards results in noncompliance with 2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart D – Post Federal Awards Requirements, Standards for Financial and Program Management, §200.302, Financial Management, and Subpart F – Audit Requirements, §200.510, Financial Statements. Audit Recommendation: We recommend that the organization document and implement policies and procedures to ensure the schedule of expenditures of federal awards is accurate and complete in accordance with 2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart D – Post Federal Awards Requirements, Standards for Financial and Program Management, §200.302, Financial Management and Subpart F – Audit Requirements, §200.510, Financial Statements, in order to obtain accurate calculations of major federal programs for the single audit and to ensure the organization is in compliance with all of the reporting requirements as to identify the source and application of funds for federally-funded activities. Management’s Response: The SEFA was assigned to be prepared internally, but unfortunately was not submitted due to staff turnover during the course of the audit. This oversight will be corrected by improving procedures around internal task assignments when employee turnover is experienced in the Fiscal department during the course of the audit.
FINDING 2022-003 Information on the federal program: Subject: Water and Waste Disposal Systems for Rural Communities – Reporting Federal Agency: U.S. Department of Agriculture Assistance Listing Number: 10.760 Federal Award Number: 92-02 92-03 Pass-Through Entity: N/A Compliance Requirements: Reporting Audit Findings: 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: The City did not have proper controls in place to ensure that the annual report was accurately filled out and agreed to underlying detail. Cause: There were not sufficient internal controls in place to ensure the accuracy of the annual report prior to its submission. Effect: The failure to establish an effective internal control system placed the City at risk of noncompliance with the grant agreement and the Reporting compliance requirements. Questioned Costs: There were no questioned costs identified. Context: Variances to key line items were noted when comparing the Form RD442-2 and Form RD442-3 to supporting documents. Identification as a repeat finding, if applicable: No Recommendation: We recommend someone other than the preparer thoroughly review and document the review of the report prior to submission to validate the accuracy and completeness of the data submitted. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
Management did not have written internal control procedures for determining allowable costs and other requirements over federal awards specifically relating to the Uniform Guidance. 2 CFR 200, Subpart D, Section 200.302(b)(7) requires “written procedures for determining the allowability of costs in accordance with Subpart E – Cost Principles of this part and the terms and conditions of the Federal Award. no questioned costs. Lack of written controls to identify allowable costs and special tests and provisions. Costs may be disallowed and required to be repaid to the granting agency. Compliance requirements set forth in the grant agreements were not followed. Management should develop written internal control procedures in accordance with the Uniform Guidance. This was a repeat finding as Finding 2021-003.
Management did not have written internal control procedures for determining allowable costs and other requirements over federal awards specifically relating to the Uniform Guidance. 2 CFR 200, Subpart D, Section 200.302(b)(7) requires “written procedures for determining the allowability of costs in accordance with Subpart E – Cost Principles of this part and the terms and conditions of the Federal Award. no questioned costs. Lack of written controls to identify allowable costs and special tests and provisions. Costs may be disallowed and required to be repaid to the granting agency. Compliance requirements set forth in the grant agreements were not followed. Management should develop written internal control procedures in accordance with the Uniform Guidance. This was a repeat finding as Finding 2021-003.
2 CFR 200.302(b)(6) requires that non-Federal entities establish written procedures to implement the requirements of 2 CFR 200.305. The FAR clause at 48 CFR section 52.216-7 applies to reimbursement payment. Paragraph (b)(1) of that clause requires that the non-federal entity request reimbursement for (a) only allocable, allowable, and reasonable contract costs that have already been paid, or (b) if the non-federal entity is not delinquent in paying costs of contract performance in the ordinary course of business, costs incurred, but not necessarily paid. Article V, Section B states: 1. Periodically, but not more frequently than once every 30 calendar days, the Non-Federal Sponsor shall provide the Government with a sufficient invoice for costs the Non-Federal Sponsor has incurred for the Project. 2. Upon receipt of such sufficient invoice, the Government shall review the costs identified therein and shall determine: (a) the amount to be included in total project costs, subject to the limitations in Article II.C. of this Agreement; (b) the total costs incurred by the parties to date (including the value of lands, easements, rights-of-way, and relocations, and the costs of permits determined in accordance with Article V of this Agreement); (c) each party’s share of total project costs and the costs of data recovery activities associated with historic preservation in accordance with Article II.P. of this Agreement incurred by the parties to date; (d) the costs incurred by each party to date; (e) the total amount of reimbursements the Government has made to date in accordance with this paragraph; (f) the balance of Federal funds available for the Project, as of the date of such review; (g) the amount of reimbursement, if any, due to the Non-Federal Sponsor; and (h) the amount that actually will be paid to the Non-Federal Sponsor (hereinafter the “payment amount”) if the amount of reimbursement determined above cannot be fully paid due to an insufficiency of Federal funds or the limitations of the Section 594 Program Limit for Ohio or the Section 102 Limit. Article I, Section K state the term “sufficient invoice” shall mean documentation provided by the Non-Federal Sponsor containing the following: (1) a written certification by the Non-Federal Sponsor to the Government that it has made specified payments to contractors, suppliers, or employees for performance of work in accordance with this Agreement, or a written certification by the Non-Federal Sponsor to the Government that it has received bills from contractors, suppliers, or employees for performance of work in accordance with this Agreement; (2) copies of all relevant invoices and evidence of such payments or bills received; (3) written identification of such costs that have been paid with Federal program funds and a copy of the written verification from the Federal agency that provided the funds; and (4) a written request for reimbursement for the amount of such specified payments or bills received. The Village received funding from various sources for the project. Due to cash flow issues, the Village often used alternate funding to meet federal obligations, leaving an accumulation of federal funds on hand during the year. The Village also does not have any formal policies in place regarding cash management requirements. We recommend that the Village more closely monitor its reimbursement requests in relation to actual expenditures paid to ensure that the Village does not accumulate federal funds. Additionally, the Village should adopt formal policies and procedures that address cash management requirements.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.
Criteria: The Organizations are required under 2 CFR §200.302 to be able to have “identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received”. It is also required to maintain “effective control over, and accountability for, all funds, property, and other assets”. These requirements are imperative to ensure that all Federal programs are properly reported on the Organizations’ Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted a few Federal programs that had expired in prior years were inadvertently included in the SEFA by error due to failure of reallocating expenditures to the proper Federal programs. Additionally, the Vaccines for Children program and a portion of the required Period 4 Provider Relief Fund receipts was not included in the original SEFA prepared by the Center. Cause: Due to significant turnover in the finance department and lack of accountability and monitoring of Federal funds, the Center did not properly report the Federal expenditures in the SEFA. This situation is due primarily to the fact that there is not a designated individual responsible and accountable for ensuring that all Federal sources of funds are properly identified and monitored in accordance with the laws and regulations, contracts, and grant agreements. Effect or Potential Effect: Without sufficient internal controls surrounding the preparation of the SEFA and an understanding of all programs that are Federally funded, the SEFA could be inaccurately reported. Questioned Costs: None. Context: The Center failed to properly track and allocate Federal expenditures in fiscal year 2022, which resulted in the SEFA not being properly prepared. Additionally, the Center did not have a person with the appropriate knowledge of the Vaccines for Children program or SEFA receipt reporting requirements of the Provider Relief Fund programs. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Center develop standard operating procedures (SOPs) to document the current processes, procedures, and contingency plans to improve daily operations, efficiency, productivity, compliance, and risk management. Additionally, we recommend that the Center implement policies and procedures to ensure that expenses are allocated to the appropriate Federal grant award/program so the SEFA can be prepared to accurately reflect expenses incurred. We also recommend that the Center identify and monitor all Federal source of funds (including Federally sourced donated vaccines) and ensure they have oversight/monitoring and are being properly reported.