CONDITION The audit tested quarterly Project and Expenditure reports of the State and Local Fiscal Recovery Funds (SLFRF) program for the periods ending March 2023, December 2023, and June 2024. Project and Expenditure reports are prepared and submitted by the ND Office of Management and Budget. Errors in key line items in all three quarterly Project and Expenditures Reports tested were identified. Key line items with errors included current period expenditures, cumulative expenditures, and current period obligations. Current period expenditures reported on the March 2023 and December 2023 reports did not agree to the tracking spreadsheet used to prepare the report. The net unreconciled difference in current period expenditures for these quarters was $732,036. The reason for the difference included that OMB's own SLFRF expenditures were not reported in the proper period. Cumulative expenditures reported by OMB for all three covered periods did not agree to the tracking spreadsheet used to prepare the report. The state's actual cumulative expenditures were not determined since changes or revisions can be reflected in the next Project and Expenditures report. However, cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130 while cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688. The basis of accounting used to prepare the SEFA varies amongst the agencies and universities; however, the state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Current period obligations reported by OMB for the covered period ending June 30, 2024, totaled $93,696,726, which should have been $0. This error did not impact the cumulative obligation amount since OMB previously reported the state's SLFRF allotment was 100% obligated in the cumulative obligation amount for the covered period ending December 31, 2023. CRITERIA According to Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, states are required to submit quarterly Project and Expenditure Reports. The 2023 and 2024 Compliance Supplements indicate the following line items are key line items: current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure are key line items. In addition, report corrections cannot be made after the reporting deadline unless prompted by Treasury staff. Any changes or revisions will need to be reflected in the next Project and Expenditure report. 2 CFR 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the award occurs. In general, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR 200.303(a) states that non-Federal entities must 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. CAUSE OMB manages State and Local Fiscal Recovery Funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures are incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds were included in the federal report for the period in which reimbursement to the agency occurred. In some cases, this resulted in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report. In addition, OMB's reporting process did not identify its own SLFRF expenditures in a timely manner. Lastly, OMB did not consistently utilize its tracking spreadsheet for reporting certain key line items. EFFECT State and Local Fiscal Recovery Funds (SLFRF) data reported to the U.S. Department of Treasury in quarterly Project and Expenditures Reports was inaccurate. CONTEXT In March 2021, the Federal Department of Treasury obligated funds to all 50 states under the State Local and Fiscal Recovery Fund to help states mitigate negative economic impacts caused by the COVID-19 pandemic. In November 2021, the special session of the 67th legislature obligated use of the majority of the funds to various agencies across the state. As the state was able to show that the revenue lost in years 2020 and 2021 exceeded the amount of the obligation from the Department of Treasury, the state was able to claim use of these funds under revenue replacement which allowed the state to utilize them for 'government operations' in addition to other specific uses and also allowing the state to report use of these funds under a single 'revenue replacement' project. The agencies began using the funds for purposes after they were obligated by the state legislature and began recording expenditures against the grant throughout our audit period. When these funds were initially disbursed to the state in March 2021, the funds were received by OMB and OMB then transferred reimbursement to agencies on request. The remainder of the funds were obligated by the state legislature during the 68th Legislative Assembly, which included any turnback funds obligated in previous legislation. North Dakota's project description on the reports was consistent and based on legislative appropriation. As reported, "Due to its extraordinary revenue loss during the pandemic, North Dakota’s entire SLFRF allocation is dedicated to project expenditure category group 6 – Revenue Replacement. Consequently, all expenditures will fall under project expenditure category 6.1 – Provision of Government Services. Government services, as defined by the North Dakota legislature, includes economic development and workforce development initiatives, infrastructure and deferred maintenance initiatives, state service delivery and information technology improvements, and healthcare and emergency response initiatives." Cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130. Cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688; however, the basis of accounting used to prepare the SEFA varies amongst the agencies and universities. The state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Finding 2022-035 was reported in the immediate prior year. RECOMMENDATION We recommend the Office of Management and Budget ensure quarterly Project and Expenditure Reports accurately report the State's SLFRF obligations and expenditures to the Department of Treasury. OFFICE OF MANAGEMENT AND BUDGET RESPONSE The Office of Management agrees with this finding, but will continue federal reporting based on the timing of reimbursement of expenditures to other state agencies for the duration of the SLFRF reporting period. OMB will ensure all expenditures of SFLRF funding are accurately included in the reports based on the period of reimbursement. Because OMB is responsible for the state reporting under this program, it is necessary to maintain some level of control over these funds. Consequently, OMB manages the funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures were incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds are included in the Federal report for the period in which reimbursement from the SLFRF occurs. In some cases, this results in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report in which the reimbursement is reported. To better track OMB expenditures of SLFRF moneys, which is a separate process from the reimbursement of other agencies, OMB will run specific expense reports for OMB agency expenditures to ensure all SLFRF expenses are reported in the proper period. See “Management’s Response and Corrective Action” section of this report. AUDITOR’S CONCLUDING COMMENTS While the Office of Management and Budget agrees with the finding, continuing Federal reporting based on the timing of reimbursed expenditures will likely cause further inaccurate SLFRF reporting. In addition, amounts transferred to agencies are not confirmed to not exceed incurred expenditures to ensure a reimbursement process is in place.
CONDITION The audit tested quarterly Project and Expenditure reports of the State and Local Fiscal Recovery Funds (SLFRF) program for the periods ending March 2023, December 2023, and June 2024. Project and Expenditure reports are prepared and submitted by the ND Office of Management and Budget. Errors in key line items in all three quarterly Project and Expenditures Reports tested were identified. Key line items with errors included current period expenditures, cumulative expenditures, and current period obligations. Current period expenditures reported on the March 2023 and December 2023 reports did not agree to the tracking spreadsheet used to prepare the report. The net unreconciled difference in current period expenditures for these quarters was $732,036. The reason for the difference included that OMB's own SLFRF expenditures were not reported in the proper period. Cumulative expenditures reported by OMB for all three covered periods did not agree to the tracking spreadsheet used to prepare the report. The state's actual cumulative expenditures were not determined since changes or revisions can be reflected in the next Project and Expenditures report. However, cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130 while cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688. The basis of accounting used to prepare the SEFA varies amongst the agencies and universities; however, the state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Current period obligations reported by OMB for the covered period ending June 30, 2024, totaled $93,696,726, which should have been $0. This error did not impact the cumulative obligation amount since OMB previously reported the state's SLFRF allotment was 100% obligated in the cumulative obligation amount for the covered period ending December 31, 2023. CRITERIA According to Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, states are required to submit quarterly Project and Expenditure Reports. The 2023 and 2024 Compliance Supplements indicate the following line items are key line items: current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure are key line items. In addition, report corrections cannot be made after the reporting deadline unless prompted by Treasury staff. Any changes or revisions will need to be reflected in the next Project and Expenditure report. 2 CFR 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the award occurs. In general, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR 200.303(a) states that non-Federal entities must 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. CAUSE OMB manages State and Local Fiscal Recovery Funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures are incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds were included in the federal report for the period in which reimbursement to the agency occurred. In some cases, this resulted in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report. In addition, OMB's reporting process did not identify its own SLFRF expenditures in a timely manner. Lastly, OMB did not consistently utilize its tracking spreadsheet for reporting certain key line items. EFFECT State and Local Fiscal Recovery Funds (SLFRF) data reported to the U.S. Department of Treasury in quarterly Project and Expenditures Reports was inaccurate. CONTEXT In March 2021, the Federal Department of Treasury obligated funds to all 50 states under the State Local and Fiscal Recovery Fund to help states mitigate negative economic impacts caused by the COVID-19 pandemic. In November 2021, the special session of the 67th legislature obligated use of the majority of the funds to various agencies across the state. As the state was able to show that the revenue lost in years 2020 and 2021 exceeded the amount of the obligation from the Department of Treasury, the state was able to claim use of these funds under revenue replacement which allowed the state to utilize them for 'government operations' in addition to other specific uses and also allowing the state to report use of these funds under a single 'revenue replacement' project. The agencies began using the funds for purposes after they were obligated by the state legislature and began recording expenditures against the grant throughout our audit period. When these funds were initially disbursed to the state in March 2021, the funds were received by OMB and OMB then transferred reimbursement to agencies on request. The remainder of the funds were obligated by the state legislature during the 68th Legislative Assembly, which included any turnback funds obligated in previous legislation. North Dakota's project description on the reports was consistent and based on legislative appropriation. As reported, "Due to its extraordinary revenue loss during the pandemic, North Dakota’s entire SLFRF allocation is dedicated to project expenditure category group 6 – Revenue Replacement. Consequently, all expenditures will fall under project expenditure category 6.1 – Provision of Government Services. Government services, as defined by the North Dakota legislature, includes economic development and workforce development initiatives, infrastructure and deferred maintenance initiatives, state service delivery and information technology improvements, and healthcare and emergency response initiatives." Cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130. Cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688; however, the basis of accounting used to prepare the SEFA varies amongst the agencies and universities. The state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Finding 2022-035 was reported in the immediate prior year. RECOMMENDATION We recommend the Office of Management and Budget ensure quarterly Project and Expenditure Reports accurately report the State's SLFRF obligations and expenditures to the Department of Treasury. OFFICE OF MANAGEMENT AND BUDGET RESPONSE The Office of Management agrees with this finding, but will continue federal reporting based on the timing of reimbursement of expenditures to other state agencies for the duration of the SLFRF reporting period. OMB will ensure all expenditures of SFLRF funding are accurately included in the reports based on the period of reimbursement. Because OMB is responsible for the state reporting under this program, it is necessary to maintain some level of control over these funds. Consequently, OMB manages the funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures were incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds are included in the Federal report for the period in which reimbursement from the SLFRF occurs. In some cases, this results in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report in which the reimbursement is reported. To better track OMB expenditures of SLFRF moneys, which is a separate process from the reimbursement of other agencies, OMB will run specific expense reports for OMB agency expenditures to ensure all SLFRF expenses are reported in the proper period. See “Management’s Response and Corrective Action” section of this report. AUDITOR’S CONCLUDING COMMENTS While the Office of Management and Budget agrees with the finding, continuing Federal reporting based on the timing of reimbursed expenditures will likely cause further inaccurate SLFRF reporting. In addition, amounts transferred to agencies are not confirmed to not exceed incurred expenditures to ensure a reimbursement process is in place.
CONDITION The audit tested quarterly Project and Expenditure reports of the State and Local Fiscal Recovery Funds (SLFRF) program for the periods ending March 2023, December 2023, and June 2024. Project and Expenditure reports are prepared and submitted by the ND Office of Management and Budget. Errors in key line items in all three quarterly Project and Expenditures Reports tested were identified. Key line items with errors included current period expenditures, cumulative expenditures, and current period obligations. Current period expenditures reported on the March 2023 and December 2023 reports did not agree to the tracking spreadsheet used to prepare the report. The net unreconciled difference in current period expenditures for these quarters was $732,036. The reason for the difference included that OMB's own SLFRF expenditures were not reported in the proper period. Cumulative expenditures reported by OMB for all three covered periods did not agree to the tracking spreadsheet used to prepare the report. The state's actual cumulative expenditures were not determined since changes or revisions can be reflected in the next Project and Expenditures report. However, cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130 while cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688. The basis of accounting used to prepare the SEFA varies amongst the agencies and universities; however, the state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Current period obligations reported by OMB for the covered period ending June 30, 2024, totaled $93,696,726, which should have been $0. This error did not impact the cumulative obligation amount since OMB previously reported the state's SLFRF allotment was 100% obligated in the cumulative obligation amount for the covered period ending December 31, 2023. CRITERIA According to Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, states are required to submit quarterly Project and Expenditure Reports. The 2023 and 2024 Compliance Supplements indicate the following line items are key line items: current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure are key line items. In addition, report corrections cannot be made after the reporting deadline unless prompted by Treasury staff. Any changes or revisions will need to be reflected in the next Project and Expenditure report. 2 CFR 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the award occurs. In general, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR 200.303(a) states that non-Federal entities must 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. CAUSE OMB manages State and Local Fiscal Recovery Funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures are incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds were included in the federal report for the period in which reimbursement to the agency occurred. In some cases, this resulted in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report. In addition, OMB's reporting process did not identify its own SLFRF expenditures in a timely manner. Lastly, OMB did not consistently utilize its tracking spreadsheet for reporting certain key line items. EFFECT State and Local Fiscal Recovery Funds (SLFRF) data reported to the U.S. Department of Treasury in quarterly Project and Expenditures Reports was inaccurate. CONTEXT In March 2021, the Federal Department of Treasury obligated funds to all 50 states under the State Local and Fiscal Recovery Fund to help states mitigate negative economic impacts caused by the COVID-19 pandemic. In November 2021, the special session of the 67th legislature obligated use of the majority of the funds to various agencies across the state. As the state was able to show that the revenue lost in years 2020 and 2021 exceeded the amount of the obligation from the Department of Treasury, the state was able to claim use of these funds under revenue replacement which allowed the state to utilize them for 'government operations' in addition to other specific uses and also allowing the state to report use of these funds under a single 'revenue replacement' project. The agencies began using the funds for purposes after they were obligated by the state legislature and began recording expenditures against the grant throughout our audit period. When these funds were initially disbursed to the state in March 2021, the funds were received by OMB and OMB then transferred reimbursement to agencies on request. The remainder of the funds were obligated by the state legislature during the 68th Legislative Assembly, which included any turnback funds obligated in previous legislation. North Dakota's project description on the reports was consistent and based on legislative appropriation. As reported, "Due to its extraordinary revenue loss during the pandemic, North Dakota’s entire SLFRF allocation is dedicated to project expenditure category group 6 – Revenue Replacement. Consequently, all expenditures will fall under project expenditure category 6.1 – Provision of Government Services. Government services, as defined by the North Dakota legislature, includes economic development and workforce development initiatives, infrastructure and deferred maintenance initiatives, state service delivery and information technology improvements, and healthcare and emergency response initiatives." Cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130. Cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688; however, the basis of accounting used to prepare the SEFA varies amongst the agencies and universities. The state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Finding 2022-035 was reported in the immediate prior year. RECOMMENDATION We recommend the Office of Management and Budget ensure quarterly Project and Expenditure Reports accurately report the State's SLFRF obligations and expenditures to the Department of Treasury. OFFICE OF MANAGEMENT AND BUDGET RESPONSE The Office of Management agrees with this finding, but will continue federal reporting based on the timing of reimbursement of expenditures to other state agencies for the duration of the SLFRF reporting period. OMB will ensure all expenditures of SFLRF funding are accurately included in the reports based on the period of reimbursement. Because OMB is responsible for the state reporting under this program, it is necessary to maintain some level of control over these funds. Consequently, OMB manages the funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures were incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds are included in the Federal report for the period in which reimbursement from the SLFRF occurs. In some cases, this results in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report in which the reimbursement is reported. To better track OMB expenditures of SLFRF moneys, which is a separate process from the reimbursement of other agencies, OMB will run specific expense reports for OMB agency expenditures to ensure all SLFRF expenses are reported in the proper period. See “Management’s Response and Corrective Action” section of this report. AUDITOR’S CONCLUDING COMMENTS While the Office of Management and Budget agrees with the finding, continuing Federal reporting based on the timing of reimbursed expenditures will likely cause further inaccurate SLFRF reporting. In addition, amounts transferred to agencies are not confirmed to not exceed incurred expenditures to ensure a reimbursement process is in place.
CONDITION The audit tested quarterly Project and Expenditure reports of the State and Local Fiscal Recovery Funds (SLFRF) program for the periods ending March 2023, December 2023, and June 2024. Project and Expenditure reports are prepared and submitted by the ND Office of Management and Budget. Errors in key line items in all three quarterly Project and Expenditures Reports tested were identified. Key line items with errors included current period expenditures, cumulative expenditures, and current period obligations. Current period expenditures reported on the March 2023 and December 2023 reports did not agree to the tracking spreadsheet used to prepare the report. The net unreconciled difference in current period expenditures for these quarters was $732,036. The reason for the difference included that OMB's own SLFRF expenditures were not reported in the proper period. Cumulative expenditures reported by OMB for all three covered periods did not agree to the tracking spreadsheet used to prepare the report. The state's actual cumulative expenditures were not determined since changes or revisions can be reflected in the next Project and Expenditures report. However, cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130 while cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688. The basis of accounting used to prepare the SEFA varies amongst the agencies and universities; however, the state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Current period obligations reported by OMB for the covered period ending June 30, 2024, totaled $93,696,726, which should have been $0. This error did not impact the cumulative obligation amount since OMB previously reported the state's SLFRF allotment was 100% obligated in the cumulative obligation amount for the covered period ending December 31, 2023. CRITERIA According to Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, states are required to submit quarterly Project and Expenditure Reports. The 2023 and 2024 Compliance Supplements indicate the following line items are key line items: current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure are key line items. In addition, report corrections cannot be made after the reporting deadline unless prompted by Treasury staff. Any changes or revisions will need to be reflected in the next Project and Expenditure report. 2 CFR 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the award occurs. In general, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR 200.303(a) states that non-Federal entities must 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. CAUSE OMB manages State and Local Fiscal Recovery Funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures are incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds were included in the federal report for the period in which reimbursement to the agency occurred. In some cases, this resulted in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report. In addition, OMB's reporting process did not identify its own SLFRF expenditures in a timely manner. Lastly, OMB did not consistently utilize its tracking spreadsheet for reporting certain key line items. EFFECT State and Local Fiscal Recovery Funds (SLFRF) data reported to the U.S. Department of Treasury in quarterly Project and Expenditures Reports was inaccurate. CONTEXT In March 2021, the Federal Department of Treasury obligated funds to all 50 states under the State Local and Fiscal Recovery Fund to help states mitigate negative economic impacts caused by the COVID-19 pandemic. In November 2021, the special session of the 67th legislature obligated use of the majority of the funds to various agencies across the state. As the state was able to show that the revenue lost in years 2020 and 2021 exceeded the amount of the obligation from the Department of Treasury, the state was able to claim use of these funds under revenue replacement which allowed the state to utilize them for 'government operations' in addition to other specific uses and also allowing the state to report use of these funds under a single 'revenue replacement' project. The agencies began using the funds for purposes after they were obligated by the state legislature and began recording expenditures against the grant throughout our audit period. When these funds were initially disbursed to the state in March 2021, the funds were received by OMB and OMB then transferred reimbursement to agencies on request. The remainder of the funds were obligated by the state legislature during the 68th Legislative Assembly, which included any turnback funds obligated in previous legislation. North Dakota's project description on the reports was consistent and based on legislative appropriation. As reported, "Due to its extraordinary revenue loss during the pandemic, North Dakota’s entire SLFRF allocation is dedicated to project expenditure category group 6 – Revenue Replacement. Consequently, all expenditures will fall under project expenditure category 6.1 – Provision of Government Services. Government services, as defined by the North Dakota legislature, includes economic development and workforce development initiatives, infrastructure and deferred maintenance initiatives, state service delivery and information technology improvements, and healthcare and emergency response initiatives." Cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130. Cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688; however, the basis of accounting used to prepare the SEFA varies amongst the agencies and universities. The state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Finding 2022-035 was reported in the immediate prior year. RECOMMENDATION We recommend the Office of Management and Budget ensure quarterly Project and Expenditure Reports accurately report the State's SLFRF obligations and expenditures to the Department of Treasury. OFFICE OF MANAGEMENT AND BUDGET RESPONSE The Office of Management agrees with this finding, but will continue federal reporting based on the timing of reimbursement of expenditures to other state agencies for the duration of the SLFRF reporting period. OMB will ensure all expenditures of SFLRF funding are accurately included in the reports based on the period of reimbursement. Because OMB is responsible for the state reporting under this program, it is necessary to maintain some level of control over these funds. Consequently, OMB manages the funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures were incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds are included in the Federal report for the period in which reimbursement from the SLFRF occurs. In some cases, this results in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report in which the reimbursement is reported. To better track OMB expenditures of SLFRF moneys, which is a separate process from the reimbursement of other agencies, OMB will run specific expense reports for OMB agency expenditures to ensure all SLFRF expenses are reported in the proper period. See “Management’s Response and Corrective Action” section of this report. AUDITOR’S CONCLUDING COMMENTS While the Office of Management and Budget agrees with the finding, continuing Federal reporting based on the timing of reimbursed expenditures will likely cause further inaccurate SLFRF reporting. In addition, amounts transferred to agencies are not confirmed to not exceed incurred expenditures to ensure a reimbursement process is in place.
CONDITION The audit tested quarterly Project and Expenditure reports of the State and Local Fiscal Recovery Funds (SLFRF) program for the periods ending March 2023, December 2023, and June 2024. Project and Expenditure reports are prepared and submitted by the ND Office of Management and Budget. Errors in key line items in all three quarterly Project and Expenditures Reports tested were identified. Key line items with errors included current period expenditures, cumulative expenditures, and current period obligations. Current period expenditures reported on the March 2023 and December 2023 reports did not agree to the tracking spreadsheet used to prepare the report. The net unreconciled difference in current period expenditures for these quarters was $732,036. The reason for the difference included that OMB's own SLFRF expenditures were not reported in the proper period. Cumulative expenditures reported by OMB for all three covered periods did not agree to the tracking spreadsheet used to prepare the report. The state's actual cumulative expenditures were not determined since changes or revisions can be reflected in the next Project and Expenditures report. However, cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130 while cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688. The basis of accounting used to prepare the SEFA varies amongst the agencies and universities; however, the state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Current period obligations reported by OMB for the covered period ending June 30, 2024, totaled $93,696,726, which should have been $0. This error did not impact the cumulative obligation amount since OMB previously reported the state's SLFRF allotment was 100% obligated in the cumulative obligation amount for the covered period ending December 31, 2023. CRITERIA According to Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, states are required to submit quarterly Project and Expenditure Reports. The 2023 and 2024 Compliance Supplements indicate the following line items are key line items: current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure are key line items. In addition, report corrections cannot be made after the reporting deadline unless prompted by Treasury staff. Any changes or revisions will need to be reflected in the next Project and Expenditure report. 2 CFR 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the award occurs. In general, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR 200.303(a) states that non-Federal entities must 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. CAUSE OMB manages State and Local Fiscal Recovery Funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures are incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds were included in the federal report for the period in which reimbursement to the agency occurred. In some cases, this resulted in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report. In addition, OMB's reporting process did not identify its own SLFRF expenditures in a timely manner. Lastly, OMB did not consistently utilize its tracking spreadsheet for reporting certain key line items. EFFECT State and Local Fiscal Recovery Funds (SLFRF) data reported to the U.S. Department of Treasury in quarterly Project and Expenditures Reports was inaccurate. CONTEXT In March 2021, the Federal Department of Treasury obligated funds to all 50 states under the State Local and Fiscal Recovery Fund to help states mitigate negative economic impacts caused by the COVID-19 pandemic. In November 2021, the special session of the 67th legislature obligated use of the majority of the funds to various agencies across the state. As the state was able to show that the revenue lost in years 2020 and 2021 exceeded the amount of the obligation from the Department of Treasury, the state was able to claim use of these funds under revenue replacement which allowed the state to utilize them for 'government operations' in addition to other specific uses and also allowing the state to report use of these funds under a single 'revenue replacement' project. The agencies began using the funds for purposes after they were obligated by the state legislature and began recording expenditures against the grant throughout our audit period. When these funds were initially disbursed to the state in March 2021, the funds were received by OMB and OMB then transferred reimbursement to agencies on request. The remainder of the funds were obligated by the state legislature during the 68th Legislative Assembly, which included any turnback funds obligated in previous legislation. North Dakota's project description on the reports was consistent and based on legislative appropriation. As reported, "Due to its extraordinary revenue loss during the pandemic, North Dakota’s entire SLFRF allocation is dedicated to project expenditure category group 6 – Revenue Replacement. Consequently, all expenditures will fall under project expenditure category 6.1 – Provision of Government Services. Government services, as defined by the North Dakota legislature, includes economic development and workforce development initiatives, infrastructure and deferred maintenance initiatives, state service delivery and information technology improvements, and healthcare and emergency response initiatives." Cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130. Cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688; however, the basis of accounting used to prepare the SEFA varies amongst the agencies and universities. The state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Finding 2022-035 was reported in the immediate prior year. RECOMMENDATION We recommend the Office of Management and Budget ensure quarterly Project and Expenditure Reports accurately report the State's SLFRF obligations and expenditures to the Department of Treasury. OFFICE OF MANAGEMENT AND BUDGET RESPONSE The Office of Management agrees with this finding, but will continue federal reporting based on the timing of reimbursement of expenditures to other state agencies for the duration of the SLFRF reporting period. OMB will ensure all expenditures of SFLRF funding are accurately included in the reports based on the period of reimbursement. Because OMB is responsible for the state reporting under this program, it is necessary to maintain some level of control over these funds. Consequently, OMB manages the funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures were incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds are included in the Federal report for the period in which reimbursement from the SLFRF occurs. In some cases, this results in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report in which the reimbursement is reported. To better track OMB expenditures of SLFRF moneys, which is a separate process from the reimbursement of other agencies, OMB will run specific expense reports for OMB agency expenditures to ensure all SLFRF expenses are reported in the proper period. See “Management’s Response and Corrective Action” section of this report. AUDITOR’S CONCLUDING COMMENTS While the Office of Management and Budget agrees with the finding, continuing Federal reporting based on the timing of reimbursed expenditures will likely cause further inaccurate SLFRF reporting. In addition, amounts transferred to agencies are not confirmed to not exceed incurred expenditures to ensure a reimbursement process is in place.
CONDITION The audit tested quarterly Project and Expenditure reports of the State and Local Fiscal Recovery Funds (SLFRF) program for the periods ending March 2023, December 2023, and June 2024. Project and Expenditure reports are prepared and submitted by the ND Office of Management and Budget. Errors in key line items in all three quarterly Project and Expenditures Reports tested were identified. Key line items with errors included current period expenditures, cumulative expenditures, and current period obligations. Current period expenditures reported on the March 2023 and December 2023 reports did not agree to the tracking spreadsheet used to prepare the report. The net unreconciled difference in current period expenditures for these quarters was $732,036. The reason for the difference included that OMB's own SLFRF expenditures were not reported in the proper period. Cumulative expenditures reported by OMB for all three covered periods did not agree to the tracking spreadsheet used to prepare the report. The state's actual cumulative expenditures were not determined since changes or revisions can be reflected in the next Project and Expenditures report. However, cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130 while cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688. The basis of accounting used to prepare the SEFA varies amongst the agencies and universities; however, the state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Current period obligations reported by OMB for the covered period ending June 30, 2024, totaled $93,696,726, which should have been $0. This error did not impact the cumulative obligation amount since OMB previously reported the state's SLFRF allotment was 100% obligated in the cumulative obligation amount for the covered period ending December 31, 2023. CRITERIA According to Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, states are required to submit quarterly Project and Expenditure Reports. The 2023 and 2024 Compliance Supplements indicate the following line items are key line items: current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure are key line items. In addition, report corrections cannot be made after the reporting deadline unless prompted by Treasury staff. Any changes or revisions will need to be reflected in the next Project and Expenditure report. 2 CFR 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the award occurs. In general, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR 200.303(a) states that non-Federal entities must 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. CAUSE OMB manages State and Local Fiscal Recovery Funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures are incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds were included in the federal report for the period in which reimbursement to the agency occurred. In some cases, this resulted in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report. In addition, OMB's reporting process did not identify its own SLFRF expenditures in a timely manner. Lastly, OMB did not consistently utilize its tracking spreadsheet for reporting certain key line items. EFFECT State and Local Fiscal Recovery Funds (SLFRF) data reported to the U.S. Department of Treasury in quarterly Project and Expenditures Reports was inaccurate. CONTEXT In March 2021, the Federal Department of Treasury obligated funds to all 50 states under the State Local and Fiscal Recovery Fund to help states mitigate negative economic impacts caused by the COVID-19 pandemic. In November 2021, the special session of the 67th legislature obligated use of the majority of the funds to various agencies across the state. As the state was able to show that the revenue lost in years 2020 and 2021 exceeded the amount of the obligation from the Department of Treasury, the state was able to claim use of these funds under revenue replacement which allowed the state to utilize them for 'government operations' in addition to other specific uses and also allowing the state to report use of these funds under a single 'revenue replacement' project. The agencies began using the funds for purposes after they were obligated by the state legislature and began recording expenditures against the grant throughout our audit period. When these funds were initially disbursed to the state in March 2021, the funds were received by OMB and OMB then transferred reimbursement to agencies on request. The remainder of the funds were obligated by the state legislature during the 68th Legislative Assembly, which included any turnback funds obligated in previous legislation. North Dakota's project description on the reports was consistent and based on legislative appropriation. As reported, "Due to its extraordinary revenue loss during the pandemic, North Dakota’s entire SLFRF allocation is dedicated to project expenditure category group 6 – Revenue Replacement. Consequently, all expenditures will fall under project expenditure category 6.1 – Provision of Government Services. Government services, as defined by the North Dakota legislature, includes economic development and workforce development initiatives, infrastructure and deferred maintenance initiatives, state service delivery and information technology improvements, and healthcare and emergency response initiatives." Cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130. Cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688; however, the basis of accounting used to prepare the SEFA varies amongst the agencies and universities. The state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Finding 2022-035 was reported in the immediate prior year. RECOMMENDATION We recommend the Office of Management and Budget ensure quarterly Project and Expenditure Reports accurately report the State's SLFRF obligations and expenditures to the Department of Treasury. OFFICE OF MANAGEMENT AND BUDGET RESPONSE The Office of Management agrees with this finding, but will continue federal reporting based on the timing of reimbursement of expenditures to other state agencies for the duration of the SLFRF reporting period. OMB will ensure all expenditures of SFLRF funding are accurately included in the reports based on the period of reimbursement. Because OMB is responsible for the state reporting under this program, it is necessary to maintain some level of control over these funds. Consequently, OMB manages the funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures were incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds are included in the Federal report for the period in which reimbursement from the SLFRF occurs. In some cases, this results in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report in which the reimbursement is reported. To better track OMB expenditures of SLFRF moneys, which is a separate process from the reimbursement of other agencies, OMB will run specific expense reports for OMB agency expenditures to ensure all SLFRF expenses are reported in the proper period. See “Management’s Response and Corrective Action” section of this report. AUDITOR’S CONCLUDING COMMENTS While the Office of Management and Budget agrees with the finding, continuing Federal reporting based on the timing of reimbursed expenditures will likely cause further inaccurate SLFRF reporting. In addition, amounts transferred to agencies are not confirmed to not exceed incurred expenditures to ensure a reimbursement process is in place.
CONDITION The audit tested quarterly Project and Expenditure reports of the State and Local Fiscal Recovery Funds (SLFRF) program for the periods ending March 2023, December 2023, and June 2024. Project and Expenditure reports are prepared and submitted by the ND Office of Management and Budget. Errors in key line items in all three quarterly Project and Expenditures Reports tested were identified. Key line items with errors included current period expenditures, cumulative expenditures, and current period obligations. Current period expenditures reported on the March 2023 and December 2023 reports did not agree to the tracking spreadsheet used to prepare the report. The net unreconciled difference in current period expenditures for these quarters was $732,036. The reason for the difference included that OMB's own SLFRF expenditures were not reported in the proper period. Cumulative expenditures reported by OMB for all three covered periods did not agree to the tracking spreadsheet used to prepare the report. The state's actual cumulative expenditures were not determined since changes or revisions can be reflected in the next Project and Expenditures report. However, cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130 while cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688. The basis of accounting used to prepare the SEFA varies amongst the agencies and universities; however, the state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Current period obligations reported by OMB for the covered period ending June 30, 2024, totaled $93,696,726, which should have been $0. This error did not impact the cumulative obligation amount since OMB previously reported the state's SLFRF allotment was 100% obligated in the cumulative obligation amount for the covered period ending December 31, 2023. CRITERIA According to Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, states are required to submit quarterly Project and Expenditure Reports. The 2023 and 2024 Compliance Supplements indicate the following line items are key line items: current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure are key line items. In addition, report corrections cannot be made after the reporting deadline unless prompted by Treasury staff. Any changes or revisions will need to be reflected in the next Project and Expenditure report. 2 CFR 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the award occurs. In general, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR 200.303(a) states that non-Federal entities must 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. CAUSE OMB manages State and Local Fiscal Recovery Funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures are incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds were included in the federal report for the period in which reimbursement to the agency occurred. In some cases, this resulted in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report. In addition, OMB's reporting process did not identify its own SLFRF expenditures in a timely manner. Lastly, OMB did not consistently utilize its tracking spreadsheet for reporting certain key line items. EFFECT State and Local Fiscal Recovery Funds (SLFRF) data reported to the U.S. Department of Treasury in quarterly Project and Expenditures Reports was inaccurate. CONTEXT In March 2021, the Federal Department of Treasury obligated funds to all 50 states under the State Local and Fiscal Recovery Fund to help states mitigate negative economic impacts caused by the COVID-19 pandemic. In November 2021, the special session of the 67th legislature obligated use of the majority of the funds to various agencies across the state. As the state was able to show that the revenue lost in years 2020 and 2021 exceeded the amount of the obligation from the Department of Treasury, the state was able to claim use of these funds under revenue replacement which allowed the state to utilize them for 'government operations' in addition to other specific uses and also allowing the state to report use of these funds under a single 'revenue replacement' project. The agencies began using the funds for purposes after they were obligated by the state legislature and began recording expenditures against the grant throughout our audit period. When these funds were initially disbursed to the state in March 2021, the funds were received by OMB and OMB then transferred reimbursement to agencies on request. The remainder of the funds were obligated by the state legislature during the 68th Legislative Assembly, which included any turnback funds obligated in previous legislation. North Dakota's project description on the reports was consistent and based on legislative appropriation. As reported, "Due to its extraordinary revenue loss during the pandemic, North Dakota’s entire SLFRF allocation is dedicated to project expenditure category group 6 – Revenue Replacement. Consequently, all expenditures will fall under project expenditure category 6.1 – Provision of Government Services. Government services, as defined by the North Dakota legislature, includes economic development and workforce development initiatives, infrastructure and deferred maintenance initiatives, state service delivery and information technology improvements, and healthcare and emergency response initiatives." Cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130. Cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688; however, the basis of accounting used to prepare the SEFA varies amongst the agencies and universities. The state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Finding 2022-035 was reported in the immediate prior year. RECOMMENDATION We recommend the Office of Management and Budget ensure quarterly Project and Expenditure Reports accurately report the State's SLFRF obligations and expenditures to the Department of Treasury. OFFICE OF MANAGEMENT AND BUDGET RESPONSE The Office of Management agrees with this finding, but will continue federal reporting based on the timing of reimbursement of expenditures to other state agencies for the duration of the SLFRF reporting period. OMB will ensure all expenditures of SFLRF funding are accurately included in the reports based on the period of reimbursement. Because OMB is responsible for the state reporting under this program, it is necessary to maintain some level of control over these funds. Consequently, OMB manages the funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures were incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds are included in the Federal report for the period in which reimbursement from the SLFRF occurs. In some cases, this results in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report in which the reimbursement is reported. To better track OMB expenditures of SLFRF moneys, which is a separate process from the reimbursement of other agencies, OMB will run specific expense reports for OMB agency expenditures to ensure all SLFRF expenses are reported in the proper period. See “Management’s Response and Corrective Action” section of this report. AUDITOR’S CONCLUDING COMMENTS While the Office of Management and Budget agrees with the finding, continuing Federal reporting based on the timing of reimbursed expenditures will likely cause further inaccurate SLFRF reporting. In addition, amounts transferred to agencies are not confirmed to not exceed incurred expenditures to ensure a reimbursement process is in place.
CONDITION The audit tested quarterly Project and Expenditure reports of the State and Local Fiscal Recovery Funds (SLFRF) program for the periods ending March 2023, December 2023, and June 2024. Project and Expenditure reports are prepared and submitted by the ND Office of Management and Budget. Errors in key line items in all three quarterly Project and Expenditures Reports tested were identified. Key line items with errors included current period expenditures, cumulative expenditures, and current period obligations. Current period expenditures reported on the March 2023 and December 2023 reports did not agree to the tracking spreadsheet used to prepare the report. The net unreconciled difference in current period expenditures for these quarters was $732,036. The reason for the difference included that OMB's own SLFRF expenditures were not reported in the proper period. Cumulative expenditures reported by OMB for all three covered periods did not agree to the tracking spreadsheet used to prepare the report. The state's actual cumulative expenditures were not determined since changes or revisions can be reflected in the next Project and Expenditures report. However, cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130 while cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688. The basis of accounting used to prepare the SEFA varies amongst the agencies and universities; however, the state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Current period obligations reported by OMB for the covered period ending June 30, 2024, totaled $93,696,726, which should have been $0. This error did not impact the cumulative obligation amount since OMB previously reported the state's SLFRF allotment was 100% obligated in the cumulative obligation amount for the covered period ending December 31, 2023. CRITERIA According to Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, states are required to submit quarterly Project and Expenditure Reports. The 2023 and 2024 Compliance Supplements indicate the following line items are key line items: current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure are key line items. In addition, report corrections cannot be made after the reporting deadline unless prompted by Treasury staff. Any changes or revisions will need to be reflected in the next Project and Expenditure report. 2 CFR 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the award occurs. In general, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR 200.303(a) states that non-Federal entities must 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. CAUSE OMB manages State and Local Fiscal Recovery Funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures are incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds were included in the federal report for the period in which reimbursement to the agency occurred. In some cases, this resulted in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report. In addition, OMB's reporting process did not identify its own SLFRF expenditures in a timely manner. Lastly, OMB did not consistently utilize its tracking spreadsheet for reporting certain key line items. EFFECT State and Local Fiscal Recovery Funds (SLFRF) data reported to the U.S. Department of Treasury in quarterly Project and Expenditures Reports was inaccurate. CONTEXT In March 2021, the Federal Department of Treasury obligated funds to all 50 states under the State Local and Fiscal Recovery Fund to help states mitigate negative economic impacts caused by the COVID-19 pandemic. In November 2021, the special session of the 67th legislature obligated use of the majority of the funds to various agencies across the state. As the state was able to show that the revenue lost in years 2020 and 2021 exceeded the amount of the obligation from the Department of Treasury, the state was able to claim use of these funds under revenue replacement which allowed the state to utilize them for 'government operations' in addition to other specific uses and also allowing the state to report use of these funds under a single 'revenue replacement' project. The agencies began using the funds for purposes after they were obligated by the state legislature and began recording expenditures against the grant throughout our audit period. When these funds were initially disbursed to the state in March 2021, the funds were received by OMB and OMB then transferred reimbursement to agencies on request. The remainder of the funds were obligated by the state legislature during the 68th Legislative Assembly, which included any turnback funds obligated in previous legislation. North Dakota's project description on the reports was consistent and based on legislative appropriation. As reported, "Due to its extraordinary revenue loss during the pandemic, North Dakota’s entire SLFRF allocation is dedicated to project expenditure category group 6 – Revenue Replacement. Consequently, all expenditures will fall under project expenditure category 6.1 – Provision of Government Services. Government services, as defined by the North Dakota legislature, includes economic development and workforce development initiatives, infrastructure and deferred maintenance initiatives, state service delivery and information technology improvements, and healthcare and emergency response initiatives." Cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130. Cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688; however, the basis of accounting used to prepare the SEFA varies amongst the agencies and universities. The state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Finding 2022-035 was reported in the immediate prior year. RECOMMENDATION We recommend the Office of Management and Budget ensure quarterly Project and Expenditure Reports accurately report the State's SLFRF obligations and expenditures to the Department of Treasury. OFFICE OF MANAGEMENT AND BUDGET RESPONSE The Office of Management agrees with this finding, but will continue federal reporting based on the timing of reimbursement of expenditures to other state agencies for the duration of the SLFRF reporting period. OMB will ensure all expenditures of SFLRF funding are accurately included in the reports based on the period of reimbursement. Because OMB is responsible for the state reporting under this program, it is necessary to maintain some level of control over these funds. Consequently, OMB manages the funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures were incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds are included in the Federal report for the period in which reimbursement from the SLFRF occurs. In some cases, this results in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report in which the reimbursement is reported. To better track OMB expenditures of SLFRF moneys, which is a separate process from the reimbursement of other agencies, OMB will run specific expense reports for OMB agency expenditures to ensure all SLFRF expenses are reported in the proper period. See “Management’s Response and Corrective Action” section of this report. AUDITOR’S CONCLUDING COMMENTS While the Office of Management and Budget agrees with the finding, continuing Federal reporting based on the timing of reimbursed expenditures will likely cause further inaccurate SLFRF reporting. In addition, amounts transferred to agencies are not confirmed to not exceed incurred expenditures to ensure a reimbursement process is in place.
CONDITION The audit tested quarterly Project and Expenditure reports of the State and Local Fiscal Recovery Funds (SLFRF) program for the periods ending March 2023, December 2023, and June 2024. Project and Expenditure reports are prepared and submitted by the ND Office of Management and Budget. Errors in key line items in all three quarterly Project and Expenditures Reports tested were identified. Key line items with errors included current period expenditures, cumulative expenditures, and current period obligations. Current period expenditures reported on the March 2023 and December 2023 reports did not agree to the tracking spreadsheet used to prepare the report. The net unreconciled difference in current period expenditures for these quarters was $732,036. The reason for the difference included that OMB's own SLFRF expenditures were not reported in the proper period. Cumulative expenditures reported by OMB for all three covered periods did not agree to the tracking spreadsheet used to prepare the report. The state's actual cumulative expenditures were not determined since changes or revisions can be reflected in the next Project and Expenditures report. However, cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130 while cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688. The basis of accounting used to prepare the SEFA varies amongst the agencies and universities; however, the state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Current period obligations reported by OMB for the covered period ending June 30, 2024, totaled $93,696,726, which should have been $0. This error did not impact the cumulative obligation amount since OMB previously reported the state's SLFRF allotment was 100% obligated in the cumulative obligation amount for the covered period ending December 31, 2023. CRITERIA According to Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, states are required to submit quarterly Project and Expenditure Reports. The 2023 and 2024 Compliance Supplements indicate the following line items are key line items: current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure are key line items. In addition, report corrections cannot be made after the reporting deadline unless prompted by Treasury staff. Any changes or revisions will need to be reflected in the next Project and Expenditure report. 2 CFR 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the award occurs. In general, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR 200.303(a) states that non-Federal entities must 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. CAUSE OMB manages State and Local Fiscal Recovery Funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures are incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds were included in the federal report for the period in which reimbursement to the agency occurred. In some cases, this resulted in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report. In addition, OMB's reporting process did not identify its own SLFRF expenditures in a timely manner. Lastly, OMB did not consistently utilize its tracking spreadsheet for reporting certain key line items. EFFECT State and Local Fiscal Recovery Funds (SLFRF) data reported to the U.S. Department of Treasury in quarterly Project and Expenditures Reports was inaccurate. CONTEXT In March 2021, the Federal Department of Treasury obligated funds to all 50 states under the State Local and Fiscal Recovery Fund to help states mitigate negative economic impacts caused by the COVID-19 pandemic. In November 2021, the special session of the 67th legislature obligated use of the majority of the funds to various agencies across the state. As the state was able to show that the revenue lost in years 2020 and 2021 exceeded the amount of the obligation from the Department of Treasury, the state was able to claim use of these funds under revenue replacement which allowed the state to utilize them for 'government operations' in addition to other specific uses and also allowing the state to report use of these funds under a single 'revenue replacement' project. The agencies began using the funds for purposes after they were obligated by the state legislature and began recording expenditures against the grant throughout our audit period. When these funds were initially disbursed to the state in March 2021, the funds were received by OMB and OMB then transferred reimbursement to agencies on request. The remainder of the funds were obligated by the state legislature during the 68th Legislative Assembly, which included any turnback funds obligated in previous legislation. North Dakota's project description on the reports was consistent and based on legislative appropriation. As reported, "Due to its extraordinary revenue loss during the pandemic, North Dakota’s entire SLFRF allocation is dedicated to project expenditure category group 6 – Revenue Replacement. Consequently, all expenditures will fall under project expenditure category 6.1 – Provision of Government Services. Government services, as defined by the North Dakota legislature, includes economic development and workforce development initiatives, infrastructure and deferred maintenance initiatives, state service delivery and information technology improvements, and healthcare and emergency response initiatives." Cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130. Cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688; however, the basis of accounting used to prepare the SEFA varies amongst the agencies and universities. The state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Finding 2022-035 was reported in the immediate prior year. RECOMMENDATION We recommend the Office of Management and Budget ensure quarterly Project and Expenditure Reports accurately report the State's SLFRF obligations and expenditures to the Department of Treasury. OFFICE OF MANAGEMENT AND BUDGET RESPONSE The Office of Management agrees with this finding, but will continue federal reporting based on the timing of reimbursement of expenditures to other state agencies for the duration of the SLFRF reporting period. OMB will ensure all expenditures of SFLRF funding are accurately included in the reports based on the period of reimbursement. Because OMB is responsible for the state reporting under this program, it is necessary to maintain some level of control over these funds. Consequently, OMB manages the funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures were incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds are included in the Federal report for the period in which reimbursement from the SLFRF occurs. In some cases, this results in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report in which the reimbursement is reported. To better track OMB expenditures of SLFRF moneys, which is a separate process from the reimbursement of other agencies, OMB will run specific expense reports for OMB agency expenditures to ensure all SLFRF expenses are reported in the proper period. See “Management’s Response and Corrective Action” section of this report. AUDITOR’S CONCLUDING COMMENTS While the Office of Management and Budget agrees with the finding, continuing Federal reporting based on the timing of reimbursed expenditures will likely cause further inaccurate SLFRF reporting. In addition, amounts transferred to agencies are not confirmed to not exceed incurred expenditures to ensure a reimbursement process is in place.
CONDITION The audit tested quarterly Project and Expenditure reports of the State and Local Fiscal Recovery Funds (SLFRF) program for the periods ending March 2023, December 2023, and June 2024. Project and Expenditure reports are prepared and submitted by the ND Office of Management and Budget. Errors in key line items in all three quarterly Project and Expenditures Reports tested were identified. Key line items with errors included current period expenditures, cumulative expenditures, and current period obligations. Current period expenditures reported on the March 2023 and December 2023 reports did not agree to the tracking spreadsheet used to prepare the report. The net unreconciled difference in current period expenditures for these quarters was $732,036. The reason for the difference included that OMB's own SLFRF expenditures were not reported in the proper period. Cumulative expenditures reported by OMB for all three covered periods did not agree to the tracking spreadsheet used to prepare the report. The state's actual cumulative expenditures were not determined since changes or revisions can be reflected in the next Project and Expenditures report. However, cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130 while cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688. The basis of accounting used to prepare the SEFA varies amongst the agencies and universities; however, the state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Current period obligations reported by OMB for the covered period ending June 30, 2024, totaled $93,696,726, which should have been $0. This error did not impact the cumulative obligation amount since OMB previously reported the state's SLFRF allotment was 100% obligated in the cumulative obligation amount for the covered period ending December 31, 2023. CRITERIA According to Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, states are required to submit quarterly Project and Expenditure Reports. The 2023 and 2024 Compliance Supplements indicate the following line items are key line items: current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure are key line items. In addition, report corrections cannot be made after the reporting deadline unless prompted by Treasury staff. Any changes or revisions will need to be reflected in the next Project and Expenditure report. 2 CFR 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the award occurs. In general, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR 200.303(a) states that non-Federal entities must 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. CAUSE OMB manages State and Local Fiscal Recovery Funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures are incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds were included in the federal report for the period in which reimbursement to the agency occurred. In some cases, this resulted in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report. In addition, OMB's reporting process did not identify its own SLFRF expenditures in a timely manner. Lastly, OMB did not consistently utilize its tracking spreadsheet for reporting certain key line items. EFFECT State and Local Fiscal Recovery Funds (SLFRF) data reported to the U.S. Department of Treasury in quarterly Project and Expenditures Reports was inaccurate. CONTEXT In March 2021, the Federal Department of Treasury obligated funds to all 50 states under the State Local and Fiscal Recovery Fund to help states mitigate negative economic impacts caused by the COVID-19 pandemic. In November 2021, the special session of the 67th legislature obligated use of the majority of the funds to various agencies across the state. As the state was able to show that the revenue lost in years 2020 and 2021 exceeded the amount of the obligation from the Department of Treasury, the state was able to claim use of these funds under revenue replacement which allowed the state to utilize them for 'government operations' in addition to other specific uses and also allowing the state to report use of these funds under a single 'revenue replacement' project. The agencies began using the funds for purposes after they were obligated by the state legislature and began recording expenditures against the grant throughout our audit period. When these funds were initially disbursed to the state in March 2021, the funds were received by OMB and OMB then transferred reimbursement to agencies on request. The remainder of the funds were obligated by the state legislature during the 68th Legislative Assembly, which included any turnback funds obligated in previous legislation. North Dakota's project description on the reports was consistent and based on legislative appropriation. As reported, "Due to its extraordinary revenue loss during the pandemic, North Dakota’s entire SLFRF allocation is dedicated to project expenditure category group 6 – Revenue Replacement. Consequently, all expenditures will fall under project expenditure category 6.1 – Provision of Government Services. Government services, as defined by the North Dakota legislature, includes economic development and workforce development initiatives, infrastructure and deferred maintenance initiatives, state service delivery and information technology improvements, and healthcare and emergency response initiatives." Cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130. Cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688; however, the basis of accounting used to prepare the SEFA varies amongst the agencies and universities. The state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Finding 2022-035 was reported in the immediate prior year. RECOMMENDATION We recommend the Office of Management and Budget ensure quarterly Project and Expenditure Reports accurately report the State's SLFRF obligations and expenditures to the Department of Treasury. OFFICE OF MANAGEMENT AND BUDGET RESPONSE The Office of Management agrees with this finding, but will continue federal reporting based on the timing of reimbursement of expenditures to other state agencies for the duration of the SLFRF reporting period. OMB will ensure all expenditures of SFLRF funding are accurately included in the reports based on the period of reimbursement. Because OMB is responsible for the state reporting under this program, it is necessary to maintain some level of control over these funds. Consequently, OMB manages the funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures were incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds are included in the Federal report for the period in which reimbursement from the SLFRF occurs. In some cases, this results in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report in which the reimbursement is reported. To better track OMB expenditures of SLFRF moneys, which is a separate process from the reimbursement of other agencies, OMB will run specific expense reports for OMB agency expenditures to ensure all SLFRF expenses are reported in the proper period. See “Management’s Response and Corrective Action” section of this report. AUDITOR’S CONCLUDING COMMENTS While the Office of Management and Budget agrees with the finding, continuing Federal reporting based on the timing of reimbursed expenditures will likely cause further inaccurate SLFRF reporting. In addition, amounts transferred to agencies are not confirmed to not exceed incurred expenditures to ensure a reimbursement process is in place.
CONDITION The audit tested quarterly Project and Expenditure reports of the State and Local Fiscal Recovery Funds (SLFRF) program for the periods ending March 2023, December 2023, and June 2024. Project and Expenditure reports are prepared and submitted by the ND Office of Management and Budget. Errors in key line items in all three quarterly Project and Expenditures Reports tested were identified. Key line items with errors included current period expenditures, cumulative expenditures, and current period obligations. Current period expenditures reported on the March 2023 and December 2023 reports did not agree to the tracking spreadsheet used to prepare the report. The net unreconciled difference in current period expenditures for these quarters was $732,036. The reason for the difference included that OMB's own SLFRF expenditures were not reported in the proper period. Cumulative expenditures reported by OMB for all three covered periods did not agree to the tracking spreadsheet used to prepare the report. The state's actual cumulative expenditures were not determined since changes or revisions can be reflected in the next Project and Expenditures report. However, cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130 while cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688. The basis of accounting used to prepare the SEFA varies amongst the agencies and universities; however, the state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Current period obligations reported by OMB for the covered period ending June 30, 2024, totaled $93,696,726, which should have been $0. This error did not impact the cumulative obligation amount since OMB previously reported the state's SLFRF allotment was 100% obligated in the cumulative obligation amount for the covered period ending December 31, 2023. CRITERIA According to Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, states are required to submit quarterly Project and Expenditure Reports. The 2023 and 2024 Compliance Supplements indicate the following line items are key line items: current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure are key line items. In addition, report corrections cannot be made after the reporting deadline unless prompted by Treasury staff. Any changes or revisions will need to be reflected in the next Project and Expenditure report. 2 CFR 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the award occurs. In general, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR 200.303(a) states that non-Federal entities must 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. CAUSE OMB manages State and Local Fiscal Recovery Funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures are incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds were included in the federal report for the period in which reimbursement to the agency occurred. In some cases, this resulted in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report. In addition, OMB's reporting process did not identify its own SLFRF expenditures in a timely manner. Lastly, OMB did not consistently utilize its tracking spreadsheet for reporting certain key line items. EFFECT State and Local Fiscal Recovery Funds (SLFRF) data reported to the U.S. Department of Treasury in quarterly Project and Expenditures Reports was inaccurate. CONTEXT In March 2021, the Federal Department of Treasury obligated funds to all 50 states under the State Local and Fiscal Recovery Fund to help states mitigate negative economic impacts caused by the COVID-19 pandemic. In November 2021, the special session of the 67th legislature obligated use of the majority of the funds to various agencies across the state. As the state was able to show that the revenue lost in years 2020 and 2021 exceeded the amount of the obligation from the Department of Treasury, the state was able to claim use of these funds under revenue replacement which allowed the state to utilize them for 'government operations' in addition to other specific uses and also allowing the state to report use of these funds under a single 'revenue replacement' project. The agencies began using the funds for purposes after they were obligated by the state legislature and began recording expenditures against the grant throughout our audit period. When these funds were initially disbursed to the state in March 2021, the funds were received by OMB and OMB then transferred reimbursement to agencies on request. The remainder of the funds were obligated by the state legislature during the 68th Legislative Assembly, which included any turnback funds obligated in previous legislation. North Dakota's project description on the reports was consistent and based on legislative appropriation. As reported, "Due to its extraordinary revenue loss during the pandemic, North Dakota’s entire SLFRF allocation is dedicated to project expenditure category group 6 – Revenue Replacement. Consequently, all expenditures will fall under project expenditure category 6.1 – Provision of Government Services. Government services, as defined by the North Dakota legislature, includes economic development and workforce development initiatives, infrastructure and deferred maintenance initiatives, state service delivery and information technology improvements, and healthcare and emergency response initiatives." Cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130. Cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688; however, the basis of accounting used to prepare the SEFA varies amongst the agencies and universities. The state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Finding 2022-035 was reported in the immediate prior year. RECOMMENDATION We recommend the Office of Management and Budget ensure quarterly Project and Expenditure Reports accurately report the State's SLFRF obligations and expenditures to the Department of Treasury. OFFICE OF MANAGEMENT AND BUDGET RESPONSE The Office of Management agrees with this finding, but will continue federal reporting based on the timing of reimbursement of expenditures to other state agencies for the duration of the SLFRF reporting period. OMB will ensure all expenditures of SFLRF funding are accurately included in the reports based on the period of reimbursement. Because OMB is responsible for the state reporting under this program, it is necessary to maintain some level of control over these funds. Consequently, OMB manages the funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures were incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds are included in the Federal report for the period in which reimbursement from the SLFRF occurs. In some cases, this results in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report in which the reimbursement is reported. To better track OMB expenditures of SLFRF moneys, which is a separate process from the reimbursement of other agencies, OMB will run specific expense reports for OMB agency expenditures to ensure all SLFRF expenses are reported in the proper period. See “Management’s Response and Corrective Action” section of this report. AUDITOR’S CONCLUDING COMMENTS While the Office of Management and Budget agrees with the finding, continuing Federal reporting based on the timing of reimbursed expenditures will likely cause further inaccurate SLFRF reporting. In addition, amounts transferred to agencies are not confirmed to not exceed incurred expenditures to ensure a reimbursement process is in place.
CONDITION The audit tested quarterly Project and Expenditure reports of the State and Local Fiscal Recovery Funds (SLFRF) program for the periods ending March 2023, December 2023, and June 2024. Project and Expenditure reports are prepared and submitted by the ND Office of Management and Budget. Errors in key line items in all three quarterly Project and Expenditures Reports tested were identified. Key line items with errors included current period expenditures, cumulative expenditures, and current period obligations. Current period expenditures reported on the March 2023 and December 2023 reports did not agree to the tracking spreadsheet used to prepare the report. The net unreconciled difference in current period expenditures for these quarters was $732,036. The reason for the difference included that OMB's own SLFRF expenditures were not reported in the proper period. Cumulative expenditures reported by OMB for all three covered periods did not agree to the tracking spreadsheet used to prepare the report. The state's actual cumulative expenditures were not determined since changes or revisions can be reflected in the next Project and Expenditures report. However, cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130 while cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688. The basis of accounting used to prepare the SEFA varies amongst the agencies and universities; however, the state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Current period obligations reported by OMB for the covered period ending June 30, 2024, totaled $93,696,726, which should have been $0. This error did not impact the cumulative obligation amount since OMB previously reported the state's SLFRF allotment was 100% obligated in the cumulative obligation amount for the covered period ending December 31, 2023. CRITERIA According to Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, states are required to submit quarterly Project and Expenditure Reports. The 2023 and 2024 Compliance Supplements indicate the following line items are key line items: current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure are key line items. In addition, report corrections cannot be made after the reporting deadline unless prompted by Treasury staff. Any changes or revisions will need to be reflected in the next Project and Expenditure report. 2 CFR 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the award occurs. In general, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR 200.303(a) states that non-Federal entities must 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. CAUSE OMB manages State and Local Fiscal Recovery Funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures are incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds were included in the federal report for the period in which reimbursement to the agency occurred. In some cases, this resulted in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report. In addition, OMB's reporting process did not identify its own SLFRF expenditures in a timely manner. Lastly, OMB did not consistently utilize its tracking spreadsheet for reporting certain key line items. EFFECT State and Local Fiscal Recovery Funds (SLFRF) data reported to the U.S. Department of Treasury in quarterly Project and Expenditures Reports was inaccurate. CONTEXT In March 2021, the Federal Department of Treasury obligated funds to all 50 states under the State Local and Fiscal Recovery Fund to help states mitigate negative economic impacts caused by the COVID-19 pandemic. In November 2021, the special session of the 67th legislature obligated use of the majority of the funds to various agencies across the state. As the state was able to show that the revenue lost in years 2020 and 2021 exceeded the amount of the obligation from the Department of Treasury, the state was able to claim use of these funds under revenue replacement which allowed the state to utilize them for 'government operations' in addition to other specific uses and also allowing the state to report use of these funds under a single 'revenue replacement' project. The agencies began using the funds for purposes after they were obligated by the state legislature and began recording expenditures against the grant throughout our audit period. When these funds were initially disbursed to the state in March 2021, the funds were received by OMB and OMB then transferred reimbursement to agencies on request. The remainder of the funds were obligated by the state legislature during the 68th Legislative Assembly, which included any turnback funds obligated in previous legislation. North Dakota's project description on the reports was consistent and based on legislative appropriation. As reported, "Due to its extraordinary revenue loss during the pandemic, North Dakota’s entire SLFRF allocation is dedicated to project expenditure category group 6 – Revenue Replacement. Consequently, all expenditures will fall under project expenditure category 6.1 – Provision of Government Services. Government services, as defined by the North Dakota legislature, includes economic development and workforce development initiatives, infrastructure and deferred maintenance initiatives, state service delivery and information technology improvements, and healthcare and emergency response initiatives." Cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130. Cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688; however, the basis of accounting used to prepare the SEFA varies amongst the agencies and universities. The state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Finding 2022-035 was reported in the immediate prior year. RECOMMENDATION We recommend the Office of Management and Budget ensure quarterly Project and Expenditure Reports accurately report the State's SLFRF obligations and expenditures to the Department of Treasury. OFFICE OF MANAGEMENT AND BUDGET RESPONSE The Office of Management agrees with this finding, but will continue federal reporting based on the timing of reimbursement of expenditures to other state agencies for the duration of the SLFRF reporting period. OMB will ensure all expenditures of SFLRF funding are accurately included in the reports based on the period of reimbursement. Because OMB is responsible for the state reporting under this program, it is necessary to maintain some level of control over these funds. Consequently, OMB manages the funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures were incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds are included in the Federal report for the period in which reimbursement from the SLFRF occurs. In some cases, this results in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report in which the reimbursement is reported. To better track OMB expenditures of SLFRF moneys, which is a separate process from the reimbursement of other agencies, OMB will run specific expense reports for OMB agency expenditures to ensure all SLFRF expenses are reported in the proper period. See “Management’s Response and Corrective Action” section of this report. AUDITOR’S CONCLUDING COMMENTS While the Office of Management and Budget agrees with the finding, continuing Federal reporting based on the timing of reimbursed expenditures will likely cause further inaccurate SLFRF reporting. In addition, amounts transferred to agencies are not confirmed to not exceed incurred expenditures to ensure a reimbursement process is in place.
CONDITION The audit tested quarterly Project and Expenditure reports of the State and Local Fiscal Recovery Funds (SLFRF) program for the periods ending March 2023, December 2023, and June 2024. Project and Expenditure reports are prepared and submitted by the ND Office of Management and Budget. Errors in key line items in all three quarterly Project and Expenditures Reports tested were identified. Key line items with errors included current period expenditures, cumulative expenditures, and current period obligations. Current period expenditures reported on the March 2023 and December 2023 reports did not agree to the tracking spreadsheet used to prepare the report. The net unreconciled difference in current period expenditures for these quarters was $732,036. The reason for the difference included that OMB's own SLFRF expenditures were not reported in the proper period. Cumulative expenditures reported by OMB for all three covered periods did not agree to the tracking spreadsheet used to prepare the report. The state's actual cumulative expenditures were not determined since changes or revisions can be reflected in the next Project and Expenditures report. However, cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130 while cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688. The basis of accounting used to prepare the SEFA varies amongst the agencies and universities; however, the state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Current period obligations reported by OMB for the covered period ending June 30, 2024, totaled $93,696,726, which should have been $0. This error did not impact the cumulative obligation amount since OMB previously reported the state's SLFRF allotment was 100% obligated in the cumulative obligation amount for the covered period ending December 31, 2023. CRITERIA According to Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, states are required to submit quarterly Project and Expenditure Reports. The 2023 and 2024 Compliance Supplements indicate the following line items are key line items: current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure are key line items. In addition, report corrections cannot be made after the reporting deadline unless prompted by Treasury staff. Any changes or revisions will need to be reflected in the next Project and Expenditure report. 2 CFR 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the award occurs. In general, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR 200.303(a) states that non-Federal entities must 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. CAUSE OMB manages State and Local Fiscal Recovery Funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures are incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds were included in the federal report for the period in which reimbursement to the agency occurred. In some cases, this resulted in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report. In addition, OMB's reporting process did not identify its own SLFRF expenditures in a timely manner. Lastly, OMB did not consistently utilize its tracking spreadsheet for reporting certain key line items. EFFECT State and Local Fiscal Recovery Funds (SLFRF) data reported to the U.S. Department of Treasury in quarterly Project and Expenditures Reports was inaccurate. CONTEXT In March 2021, the Federal Department of Treasury obligated funds to all 50 states under the State Local and Fiscal Recovery Fund to help states mitigate negative economic impacts caused by the COVID-19 pandemic. In November 2021, the special session of the 67th legislature obligated use of the majority of the funds to various agencies across the state. As the state was able to show that the revenue lost in years 2020 and 2021 exceeded the amount of the obligation from the Department of Treasury, the state was able to claim use of these funds under revenue replacement which allowed the state to utilize them for 'government operations' in addition to other specific uses and also allowing the state to report use of these funds under a single 'revenue replacement' project. The agencies began using the funds for purposes after they were obligated by the state legislature and began recording expenditures against the grant throughout our audit period. When these funds were initially disbursed to the state in March 2021, the funds were received by OMB and OMB then transferred reimbursement to agencies on request. The remainder of the funds were obligated by the state legislature during the 68th Legislative Assembly, which included any turnback funds obligated in previous legislation. North Dakota's project description on the reports was consistent and based on legislative appropriation. As reported, "Due to its extraordinary revenue loss during the pandemic, North Dakota’s entire SLFRF allocation is dedicated to project expenditure category group 6 – Revenue Replacement. Consequently, all expenditures will fall under project expenditure category 6.1 – Provision of Government Services. Government services, as defined by the North Dakota legislature, includes economic development and workforce development initiatives, infrastructure and deferred maintenance initiatives, state service delivery and information technology improvements, and healthcare and emergency response initiatives." Cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130. Cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688; however, the basis of accounting used to prepare the SEFA varies amongst the agencies and universities. The state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Finding 2022-035 was reported in the immediate prior year. RECOMMENDATION We recommend the Office of Management and Budget ensure quarterly Project and Expenditure Reports accurately report the State's SLFRF obligations and expenditures to the Department of Treasury. OFFICE OF MANAGEMENT AND BUDGET RESPONSE The Office of Management agrees with this finding, but will continue federal reporting based on the timing of reimbursement of expenditures to other state agencies for the duration of the SLFRF reporting period. OMB will ensure all expenditures of SFLRF funding are accurately included in the reports based on the period of reimbursement. Because OMB is responsible for the state reporting under this program, it is necessary to maintain some level of control over these funds. Consequently, OMB manages the funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures were incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds are included in the Federal report for the period in which reimbursement from the SLFRF occurs. In some cases, this results in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report in which the reimbursement is reported. To better track OMB expenditures of SLFRF moneys, which is a separate process from the reimbursement of other agencies, OMB will run specific expense reports for OMB agency expenditures to ensure all SLFRF expenses are reported in the proper period. See “Management’s Response and Corrective Action” section of this report. AUDITOR’S CONCLUDING COMMENTS While the Office of Management and Budget agrees with the finding, continuing Federal reporting based on the timing of reimbursed expenditures will likely cause further inaccurate SLFRF reporting. In addition, amounts transferred to agencies are not confirmed to not exceed incurred expenditures to ensure a reimbursement process is in place.
CONDITION The audit tested quarterly Project and Expenditure reports of the State and Local Fiscal Recovery Funds (SLFRF) program for the periods ending March 2023, December 2023, and June 2024. Project and Expenditure reports are prepared and submitted by the ND Office of Management and Budget. Errors in key line items in all three quarterly Project and Expenditures Reports tested were identified. Key line items with errors included current period expenditures, cumulative expenditures, and current period obligations. Current period expenditures reported on the March 2023 and December 2023 reports did not agree to the tracking spreadsheet used to prepare the report. The net unreconciled difference in current period expenditures for these quarters was $732,036. The reason for the difference included that OMB's own SLFRF expenditures were not reported in the proper period. Cumulative expenditures reported by OMB for all three covered periods did not agree to the tracking spreadsheet used to prepare the report. The state's actual cumulative expenditures were not determined since changes or revisions can be reflected in the next Project and Expenditures report. However, cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130 while cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688. The basis of accounting used to prepare the SEFA varies amongst the agencies and universities; however, the state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Current period obligations reported by OMB for the covered period ending June 30, 2024, totaled $93,696,726, which should have been $0. This error did not impact the cumulative obligation amount since OMB previously reported the state's SLFRF allotment was 100% obligated in the cumulative obligation amount for the covered period ending December 31, 2023. CRITERIA According to Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, states are required to submit quarterly Project and Expenditure Reports. The 2023 and 2024 Compliance Supplements indicate the following line items are key line items: current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure are key line items. In addition, report corrections cannot be made after the reporting deadline unless prompted by Treasury staff. Any changes or revisions will need to be reflected in the next Project and Expenditure report. 2 CFR 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the award occurs. In general, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR 200.303(a) states that non-Federal entities must 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. CAUSE OMB manages State and Local Fiscal Recovery Funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures are incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds were included in the federal report for the period in which reimbursement to the agency occurred. In some cases, this resulted in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report. In addition, OMB's reporting process did not identify its own SLFRF expenditures in a timely manner. Lastly, OMB did not consistently utilize its tracking spreadsheet for reporting certain key line items. EFFECT State and Local Fiscal Recovery Funds (SLFRF) data reported to the U.S. Department of Treasury in quarterly Project and Expenditures Reports was inaccurate. CONTEXT In March 2021, the Federal Department of Treasury obligated funds to all 50 states under the State Local and Fiscal Recovery Fund to help states mitigate negative economic impacts caused by the COVID-19 pandemic. In November 2021, the special session of the 67th legislature obligated use of the majority of the funds to various agencies across the state. As the state was able to show that the revenue lost in years 2020 and 2021 exceeded the amount of the obligation from the Department of Treasury, the state was able to claim use of these funds under revenue replacement which allowed the state to utilize them for 'government operations' in addition to other specific uses and also allowing the state to report use of these funds under a single 'revenue replacement' project. The agencies began using the funds for purposes after they were obligated by the state legislature and began recording expenditures against the grant throughout our audit period. When these funds were initially disbursed to the state in March 2021, the funds were received by OMB and OMB then transferred reimbursement to agencies on request. The remainder of the funds were obligated by the state legislature during the 68th Legislative Assembly, which included any turnback funds obligated in previous legislation. North Dakota's project description on the reports was consistent and based on legislative appropriation. As reported, "Due to its extraordinary revenue loss during the pandemic, North Dakota’s entire SLFRF allocation is dedicated to project expenditure category group 6 – Revenue Replacement. Consequently, all expenditures will fall under project expenditure category 6.1 – Provision of Government Services. Government services, as defined by the North Dakota legislature, includes economic development and workforce development initiatives, infrastructure and deferred maintenance initiatives, state service delivery and information technology improvements, and healthcare and emergency response initiatives." Cumulative expenditures reported by OMB for the covered period ending June 30, 2024, totaled $686,652,130. Cumulative expenditures reported by agencies and universities on SEFAs for the same period totaled $670,946,688; however, the basis of accounting used to prepare the SEFA varies amongst the agencies and universities. The state's cumulative expenditures are expected to reconcile to the state's SLFRF allocation in its final Project and Expenditure Report. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Finding 2022-035 was reported in the immediate prior year. RECOMMENDATION We recommend the Office of Management and Budget ensure quarterly Project and Expenditure Reports accurately report the State's SLFRF obligations and expenditures to the Department of Treasury. OFFICE OF MANAGEMENT AND BUDGET RESPONSE The Office of Management agrees with this finding, but will continue federal reporting based on the timing of reimbursement of expenditures to other state agencies for the duration of the SLFRF reporting period. OMB will ensure all expenditures of SFLRF funding are accurately included in the reports based on the period of reimbursement. Because OMB is responsible for the state reporting under this program, it is necessary to maintain some level of control over these funds. Consequently, OMB manages the funds centrally and developed a process to reimburse agencies for their eligible expenditures once expenditures were incurred and agencies requested reimbursement. As a result, reimbursement from the state’s allocation of SLFRF moneys always occurs after the agency expenditure. Funds are included in the Federal report for the period in which reimbursement from the SLFRF occurs. In some cases, this results in the agency expenditure occurring in a period prior to the period covered under the quarterly SLFRF report in which the reimbursement is reported. To better track OMB expenditures of SLFRF moneys, which is a separate process from the reimbursement of other agencies, OMB will run specific expense reports for OMB agency expenditures to ensure all SLFRF expenses are reported in the proper period. See “Management’s Response and Corrective Action” section of this report. AUDITOR’S CONCLUDING COMMENTS While the Office of Management and Budget agrees with the finding, continuing Federal reporting based on the timing of reimbursed expenditures will likely cause further inaccurate SLFRF reporting. In addition, amounts transferred to agencies are not confirmed to not exceed incurred expenditures to ensure a reimbursement process is in place.
Finding 2024-004 - Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Agriculture Federal Program Name: Special Supplemental Nutrition Program for Women Assistance Listing Number: 10.557 Pass-Through Agency: Pennsylvania Department of Health Pass-Through Grantor’s Number: SAP 4100093389 Award Period: 10/1/2022 – 9/30/2023, 10/1/2023 – 9/30/2024 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements. The schedule must include the total federal awards expended as determined in accordance with 2 CFR 200.502. Condition and Context: The expenditures included on the schedule of expenditures of Federal awards (Schedule) initially prepared by the Organization were understated and required material adjustment. Questioned Costs: $-0- Cause: The Organization did not have adequate policies and procedures in place for accurately determining the amount of the assistance expended during the fiscal year. Effect: The Schedule prepared by the Organization did not accurately present the federal awards expended during the fiscal year. Repeat finding: No Recommendation: We recommend the following: • The Organization should establish policies and procedures to understand and ensure compliance with the Organization’s contractual obligations. • The Organization should create and implement procedures to timely and accurately determine the source of funding received through various county contracts. • The Organization should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Assistance Listing, Federal Agency, and Program Name - 14.128 Department of Housing and Urban Development - Mortgage Insurance Hospitals Federal Award Identification Number and Year - N/A Pass through Entity - None Finding Type - Material weakness Repeat Finding - No Criteria - Per 2 CFR 200.502(b), the balance of loans oustanding as of the beginning of the year should be reported on the schedule of expenditures of federal awards (the "Schedule") if the federal government imposes continuing compliance requirements for the loan, until the period in which the debt is repaid. Condition - The System obtained a loan from the Department of Housing and Urban Development (HUD) during their fiscal year June 30, 2021. The proceeds of the loan were used to repay a loan with another financial institution during that same year. The HUD loan includes continuing reporting requirements, which require the loan to be reported on the Schedule until it is repaid. The System improperly excluded the HUD loan balance from their Schedule in previous years. The beginning of the year loan balance has been reported on the System's Schedule for the year ended June 30, 2024, in accordance with 2 CFR 200.502(b). Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The System was not aware of that this loan program was required to be reported on the Schedule. Cause and Effect - The loan balance was improperly omitted from the Schedule each year beginning with the year ended June 30, 2021. The 2024 Schedule has been updated to include the loan balance in accordance with 2 CFR 200.502(b). Recommendation - Schedule reporting requirements should be reviewed to ensure completeness and federal loan programs should be evaluated for potential continuing reporting requirements that would require the loan balance to be reported on the Schedule in all years until the loan is repaid. Views of Responsible Officials and Corrective Action Plan - Management of the System agrees with the recommendation and will put procedures in place to identify federal reporting requirements.
Information on the Federal Program: Federal Program: HIV - Related Training and Technical Assistance - Aids Education and Training Centers Assistance Listing: 93.145 Federal Agency: U.S. Department of Health and Human Services – Health Resources and Services Administration (HRSA) Grant Award Number: 6 U1OHA30535-08-01 Award Periods: July 1, 2023 through June 30, 2024 Pass-Through Agency: Columbia University Grant Award Number: U1SHA46532 Award Periods: September 1, 2023 through August 31, 2024 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): 2 CFR 200.303 requires that a 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 and the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also 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 §200.502, Basis for determining Federal awards expended.” Condition: The Schedule of Expenditures of Federal Awards (the Schedule) did not accurately classify the HIV-Related Training and Technical Assistance – Aids Education and Training Centers program. The final Schedule was corrected for the misclassification. Cause: The internal control over the SEFA reporting process was not operating effectively to appropriately classify grant awards on the SEFA. Effect or Potential Effect: Management included the HIV-Related Training and Technical Assistance grant (Assistance Listing 93.145) in the amount of $5,642,581 in the Research & Development (R&D) cluster. Questioned Costs: None. Context: Total R&D Cluster expenses included on the draft Schedule was $592,460,606 for the year ended June 30, 2024. Total R&D expenses included on the final Schedule were $586,818,025 for the year ended June 30, 2024. Total expenditures on the SEFA did not change. Identification as a Repeat Finding, if Applicable This is not a repeat finding. Recommendation: We recommend that management implement more robust controls to ensure accurate reporting of federal awards on the SEFA. Management’s Response: Department of Health and Human Services – Health Resources and Services Administration (HRSA) updated the award template utilizing a new federal format. Modification of this federal award template has allowed HRSA to indicate/flag (item 18 in the Notice of Grant Award - R&D “no”) whether the federal program is R&D in a manner not previously recorded or visible. This indicator flag now indicates AETC is non-R&D, therefore, we have reflected it appropriately in the FY24 SEFA. We will strengthen our controls for monitoring the cluster to ensure appropriate classification paying attention to any indications in the Notice of Grant Award.
Information on the Federal Program: Federal Program: HIV - Related Training and Technical Assistance - Aids Education and Training Centers Assistance Listing: 93.145 Federal Agency: U.S. Department of Health and Human Services – Health Resources and Services Administration (HRSA) Grant Award Number: 6 U1OHA30535-08-01 Award Periods: July 1, 2023 through June 30, 2024 Pass-Through Agency: Columbia University Grant Award Number: U1SHA46532 Award Periods: September 1, 2023 through August 31, 2024 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): 2 CFR 200.303 requires that a 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 and the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also 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 §200.502, Basis for determining Federal awards expended.” Condition: The Schedule of Expenditures of Federal Awards (the Schedule) did not accurately classify the HIV-Related Training and Technical Assistance – Aids Education and Training Centers program. The final Schedule was corrected for the misclassification. Cause: The internal control over the SEFA reporting process was not operating effectively to appropriately classify grant awards on the SEFA. Effect or Potential Effect: Management included the HIV-Related Training and Technical Assistance grant (Assistance Listing 93.145) in the amount of $5,642,581 in the Research & Development (R&D) cluster. Questioned Costs: None. Context: Total R&D Cluster expenses included on the draft Schedule was $592,460,606 for the year ended June 30, 2024. Total R&D expenses included on the final Schedule were $586,818,025 for the year ended June 30, 2024. Total expenditures on the SEFA did not change. Identification as a Repeat Finding, if Applicable This is not a repeat finding. Recommendation: We recommend that management implement more robust controls to ensure accurate reporting of federal awards on the SEFA. Management’s Response: Department of Health and Human Services – Health Resources and Services Administration (HRSA) updated the award template utilizing a new federal format. Modification of this federal award template has allowed HRSA to indicate/flag (item 18 in the Notice of Grant Award - R&D “no”) whether the federal program is R&D in a manner not previously recorded or visible. This indicator flag now indicates AETC is non-R&D, therefore, we have reflected it appropriately in the FY24 SEFA. We will strengthen our controls for monitoring the cluster to ensure appropriate classification paying attention to any indications in the Notice of Grant Award.
Criteria: The requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance), Subpart F, Audit Requirements, include the following: - The auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee's financial statements. - The SEFA must include total federal awards expended as determined in accordance with § 200.502. § 200.502 states that the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Condition: Allowable costs from fiscal years 2022 and 2023 were not submitted for cost reimbursement until fiscal year 2024. Therefore, the fiscal year 2024 SEFA included expenditures for activities that occurred in prior fiscal years. Cause: The Organization identifies the funding source for project expenditures when the activity occurs (expenditure incurred). Incurred expenditures are then submitted to the grantor by the Organization for cost reimbursement. At times, the dates between when expenditures are incurred and submitted for reimbursement cross more than one of the Organization’s fiscal years. Effect: The SEFA may exclude expenditures incurred during the current fiscal year since the Organization did not request reimbursement prior to their fiscal year end. Additionally, the SEFA may include expenditures incurred in a prior fiscal year since reimbursement was requested during the Organization’s current fiscal year. An inaccurate SEFA may lead to the auditor making improper conclusions on which programs require testing as major programs in the current year. Refer to Note D in the Notes to the Schedule Expenditures of Federal Awards for prior year Home Investment Partnership Program expenditures reported on the fiscal year 2024 SEFA. Question Costs: None Recommendation: We recommend the Organization implement procedures to ensure the completion of an accurate and complete SEFA. These procedures may include shortening the length of time between when an expenditure is incurred and when reimbursement is requested.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.
Assistance Listing, Federal Agency, and Program Name - 84.027 Special Education Cluster ("IDEA") and Research and Development Cluster ("R&D") Federal Award Identification Number and Year - IDEA - 700005133 and R&D - All ALN's Pass through Entity - IDEA - N/A and R&D - Various Finding Type - Significant deficiency Repeat Finding - No Criteria - The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (2 CFR 200.502) Condition - Out of our 40 samples tested for allowability in the Special Education Cluster, the University improperly included 2 expenditures for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Out of our 40 samples tested for allowability in the Research and Development Cluster, the University improperly included 1 expenditure for goods and services incurred or received in a prior year on the schedule of expenditures of federal awards (SEFA) in the current year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - As part of the University's year end closing process, they accrue for invoices received subsequent to year end but relate to the prior fiscal year. Our sample identified two invoices that were improperly excluded from the University's analysis in the prior year and therefore were improperly included in the current year SEFA. Cause and Effect - The University did not follow its procedure to ensure all expenditures were captured in its year end analysis resulting in expenditures improperly included in the current year SEFA. Recommendation - We recommend the University review its current policy and procedures related to identifying and capturing grant expenditures in the proper period. Views of Responsible Officials and Planned Corrective Actions - The university implemented a new financial enterprise software system that allows each department within the university to improve its ability to monitor and track status of invoices as well as reduce processing time by the Accounts Payable Department to vouch approved expenditures.