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.
(2024-034) Title: Internal control over the submission of CNC Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: See schedule of Findings and Questioned Costs for chart/table State Department: Education State Bureau: Child Nutrition Services Federal Agency: U.S. Department of Agriculture Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, 10.559, 10.582 Federal Award Identification Number: See E-77 to E-78 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.502 and .510; 7 CFR 250.58(e); U.S. Department of Agriculture Policy No. FD-104 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State’s financial statements which must include the total Federal awards expended, including distribution or use of food commodities. Federal non-cash assistance, such as food commodities, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal Agency. For a cluster of programs, the SEFA must list individual Federal programs within the cluster. In meeting the commodity offer value of donated foods for the school food authority, the distributing agency must use the cost-per-pound donated food price posted annually by the U.S. Department of Agriculture (USDA), the most recently published cost-per-pound price in the USDA donated foods catalog, and/or a rolling average of the USDA prices. Each distributing or recipient agency must choose a method of valuing USDA donated foods for audit purposes. In most cases, it is recommended that a distributing or recipient agency use one of the options listed in 7 CFR 250.58(e). Once a method of assigning value to USDA donated foods is selected, it must be used consistently in all its audit activities and the State must maintain a record of the means of valuing donated foods for such purposes. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for the Child Nutrition Cluster (CNC) for inclusion on the State’s SEFA. OSC is responsible for compiling this information on behalf of the State. The Department submitted exhibits to OSC that: • incorrectly excluded $1.2 million of fresh food distributed to subrecipients and additional commodity items received. • incorrectly reported $4,481 of non-cash food assistance under ALN 10.555 National School Lunch Program that should have been reported under ALN 10.559 Summer Food Service Program. • incorrectly excluded $256 of expenditures under ALN 10.556 Special Milk Program. • incorrectly categorized $98,963 in expenditures related to the State’s juvenile correctional facility as subrecipient expenditures instead of direct expenditures. Context: In fiscal year 2024: • CNC expenditures totaled approximately $68 million. • noncash assistance totaling $1.2 million was not reported to OSC by the Department for inclusion on the SEFA. Noncash assistance for CNC totaled $6.2 million. Cause: • Lack of policies and procedures relating to Department SEFA submissions to OSC • Lack of supervisory oversight Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department implement policies and procedures that require a comprehensive review of SEFA schedules prior to submission to OSC. In addition, we recommend enhanced oversight of policies and procedures to ensure they are consistently applied and the SEFA is accurate and complete. Corrective Action Plan: See F-17 Management’s Response: The Department agrees with this finding. The SEFA Review Procedure has been updated to include more specific information regarding the calculation of amounts reported for the Special Milk Program and noncash assistance and the classification of payments made to a school as direct payments rather than subrecipient expenditures. Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 (State Number: 24-1203-01)
(2024-034) Title: Internal control over the submission of CNC Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: See schedule of Findings and Questioned Costs for chart/table State Department: Education State Bureau: Child Nutrition Services Federal Agency: U.S. Department of Agriculture Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, 10.559, 10.582 Federal Award Identification Number: See E-77 to E-78 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.502 and .510; 7 CFR 250.58(e); U.S. Department of Agriculture Policy No. FD-104 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State’s financial statements which must include the total Federal awards expended, including distribution or use of food commodities. Federal non-cash assistance, such as food commodities, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal Agency. For a cluster of programs, the SEFA must list individual Federal programs within the cluster. In meeting the commodity offer value of donated foods for the school food authority, the distributing agency must use the cost-per-pound donated food price posted annually by the U.S. Department of Agriculture (USDA), the most recently published cost-per-pound price in the USDA donated foods catalog, and/or a rolling average of the USDA prices. Each distributing or recipient agency must choose a method of valuing USDA donated foods for audit purposes. In most cases, it is recommended that a distributing or recipient agency use one of the options listed in 7 CFR 250.58(e). Once a method of assigning value to USDA donated foods is selected, it must be used consistently in all its audit activities and the State must maintain a record of the means of valuing donated foods for such purposes. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for the Child Nutrition Cluster (CNC) for inclusion on the State’s SEFA. OSC is responsible for compiling this information on behalf of the State. The Department submitted exhibits to OSC that: • incorrectly excluded $1.2 million of fresh food distributed to subrecipients and additional commodity items received. • incorrectly reported $4,481 of non-cash food assistance under ALN 10.555 National School Lunch Program that should have been reported under ALN 10.559 Summer Food Service Program. • incorrectly excluded $256 of expenditures under ALN 10.556 Special Milk Program. • incorrectly categorized $98,963 in expenditures related to the State’s juvenile correctional facility as subrecipient expenditures instead of direct expenditures. Context: In fiscal year 2024: • CNC expenditures totaled approximately $68 million. • noncash assistance totaling $1.2 million was not reported to OSC by the Department for inclusion on the SEFA. Noncash assistance for CNC totaled $6.2 million. Cause: • Lack of policies and procedures relating to Department SEFA submissions to OSC • Lack of supervisory oversight Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department implement policies and procedures that require a comprehensive review of SEFA schedules prior to submission to OSC. In addition, we recommend enhanced oversight of policies and procedures to ensure they are consistently applied and the SEFA is accurate and complete. Corrective Action Plan: See F-17 Management’s Response: The Department agrees with this finding. The SEFA Review Procedure has been updated to include more specific information regarding the calculation of amounts reported for the Special Milk Program and noncash assistance and the classification of payments made to a school as direct payments rather than subrecipient expenditures. Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 (State Number: 24-1203-01)
(2024-034) Title: Internal control over the submission of CNC Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: See schedule of Findings and Questioned Costs for chart/table State Department: Education State Bureau: Child Nutrition Services Federal Agency: U.S. Department of Agriculture Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, 10.559, 10.582 Federal Award Identification Number: See E-77 to E-78 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.502 and .510; 7 CFR 250.58(e); U.S. Department of Agriculture Policy No. FD-104 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State’s financial statements which must include the total Federal awards expended, including distribution or use of food commodities. Federal non-cash assistance, such as food commodities, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal Agency. For a cluster of programs, the SEFA must list individual Federal programs within the cluster. In meeting the commodity offer value of donated foods for the school food authority, the distributing agency must use the cost-per-pound donated food price posted annually by the U.S. Department of Agriculture (USDA), the most recently published cost-per-pound price in the USDA donated foods catalog, and/or a rolling average of the USDA prices. Each distributing or recipient agency must choose a method of valuing USDA donated foods for audit purposes. In most cases, it is recommended that a distributing or recipient agency use one of the options listed in 7 CFR 250.58(e). Once a method of assigning value to USDA donated foods is selected, it must be used consistently in all its audit activities and the State must maintain a record of the means of valuing donated foods for such purposes. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for the Child Nutrition Cluster (CNC) for inclusion on the State’s SEFA. OSC is responsible for compiling this information on behalf of the State. The Department submitted exhibits to OSC that: • incorrectly excluded $1.2 million of fresh food distributed to subrecipients and additional commodity items received. • incorrectly reported $4,481 of non-cash food assistance under ALN 10.555 National School Lunch Program that should have been reported under ALN 10.559 Summer Food Service Program. • incorrectly excluded $256 of expenditures under ALN 10.556 Special Milk Program. • incorrectly categorized $98,963 in expenditures related to the State’s juvenile correctional facility as subrecipient expenditures instead of direct expenditures. Context: In fiscal year 2024: • CNC expenditures totaled approximately $68 million. • noncash assistance totaling $1.2 million was not reported to OSC by the Department for inclusion on the SEFA. Noncash assistance for CNC totaled $6.2 million. Cause: • Lack of policies and procedures relating to Department SEFA submissions to OSC • Lack of supervisory oversight Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department implement policies and procedures that require a comprehensive review of SEFA schedules prior to submission to OSC. In addition, we recommend enhanced oversight of policies and procedures to ensure they are consistently applied and the SEFA is accurate and complete. Corrective Action Plan: See F-17 Management’s Response: The Department agrees with this finding. The SEFA Review Procedure has been updated to include more specific information regarding the calculation of amounts reported for the Special Milk Program and noncash assistance and the classification of payments made to a school as direct payments rather than subrecipient expenditures. Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 (State Number: 24-1203-01)
(2024-034) Title: Internal control over the submission of CNC Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: See schedule of Findings and Questioned Costs for chart/table State Department: Education State Bureau: Child Nutrition Services Federal Agency: U.S. Department of Agriculture Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, 10.559, 10.582 Federal Award Identification Number: See E-77 to E-78 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.502 and .510; 7 CFR 250.58(e); U.S. Department of Agriculture Policy No. FD-104 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State’s financial statements which must include the total Federal awards expended, including distribution or use of food commodities. Federal non-cash assistance, such as food commodities, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal Agency. For a cluster of programs, the SEFA must list individual Federal programs within the cluster. In meeting the commodity offer value of donated foods for the school food authority, the distributing agency must use the cost-per-pound donated food price posted annually by the U.S. Department of Agriculture (USDA), the most recently published cost-per-pound price in the USDA donated foods catalog, and/or a rolling average of the USDA prices. Each distributing or recipient agency must choose a method of valuing USDA donated foods for audit purposes. In most cases, it is recommended that a distributing or recipient agency use one of the options listed in 7 CFR 250.58(e). Once a method of assigning value to USDA donated foods is selected, it must be used consistently in all its audit activities and the State must maintain a record of the means of valuing donated foods for such purposes. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for the Child Nutrition Cluster (CNC) for inclusion on the State’s SEFA. OSC is responsible for compiling this information on behalf of the State. The Department submitted exhibits to OSC that: • incorrectly excluded $1.2 million of fresh food distributed to subrecipients and additional commodity items received. • incorrectly reported $4,481 of non-cash food assistance under ALN 10.555 National School Lunch Program that should have been reported under ALN 10.559 Summer Food Service Program. • incorrectly excluded $256 of expenditures under ALN 10.556 Special Milk Program. • incorrectly categorized $98,963 in expenditures related to the State’s juvenile correctional facility as subrecipient expenditures instead of direct expenditures. Context: In fiscal year 2024: • CNC expenditures totaled approximately $68 million. • noncash assistance totaling $1.2 million was not reported to OSC by the Department for inclusion on the SEFA. Noncash assistance for CNC totaled $6.2 million. Cause: • Lack of policies and procedures relating to Department SEFA submissions to OSC • Lack of supervisory oversight Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department implement policies and procedures that require a comprehensive review of SEFA schedules prior to submission to OSC. In addition, we recommend enhanced oversight of policies and procedures to ensure they are consistently applied and the SEFA is accurate and complete. Corrective Action Plan: See F-17 Management’s Response: The Department agrees with this finding. The SEFA Review Procedure has been updated to include more specific information regarding the calculation of amounts reported for the Special Milk Program and noncash assistance and the classification of payments made to a school as direct payments rather than subrecipient expenditures. Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 (State Number: 24-1203-01)
(2024-034) Title: Internal control over the submission of CNC Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: See schedule of Findings and Questioned Costs for chart/table State Department: Education State Bureau: Child Nutrition Services Federal Agency: U.S. Department of Agriculture Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, 10.559, 10.582 Federal Award Identification Number: See E-77 to E-78 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.502 and .510; 7 CFR 250.58(e); U.S. Department of Agriculture Policy No. FD-104 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State’s financial statements which must include the total Federal awards expended, including distribution or use of food commodities. Federal non-cash assistance, such as food commodities, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal Agency. For a cluster of programs, the SEFA must list individual Federal programs within the cluster. In meeting the commodity offer value of donated foods for the school food authority, the distributing agency must use the cost-per-pound donated food price posted annually by the U.S. Department of Agriculture (USDA), the most recently published cost-per-pound price in the USDA donated foods catalog, and/or a rolling average of the USDA prices. Each distributing or recipient agency must choose a method of valuing USDA donated foods for audit purposes. In most cases, it is recommended that a distributing or recipient agency use one of the options listed in 7 CFR 250.58(e). Once a method of assigning value to USDA donated foods is selected, it must be used consistently in all its audit activities and the State must maintain a record of the means of valuing donated foods for such purposes. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for the Child Nutrition Cluster (CNC) for inclusion on the State’s SEFA. OSC is responsible for compiling this information on behalf of the State. The Department submitted exhibits to OSC that: • incorrectly excluded $1.2 million of fresh food distributed to subrecipients and additional commodity items received. • incorrectly reported $4,481 of non-cash food assistance under ALN 10.555 National School Lunch Program that should have been reported under ALN 10.559 Summer Food Service Program. • incorrectly excluded $256 of expenditures under ALN 10.556 Special Milk Program. • incorrectly categorized $98,963 in expenditures related to the State’s juvenile correctional facility as subrecipient expenditures instead of direct expenditures. Context: In fiscal year 2024: • CNC expenditures totaled approximately $68 million. • noncash assistance totaling $1.2 million was not reported to OSC by the Department for inclusion on the SEFA. Noncash assistance for CNC totaled $6.2 million. Cause: • Lack of policies and procedures relating to Department SEFA submissions to OSC • Lack of supervisory oversight Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department implement policies and procedures that require a comprehensive review of SEFA schedules prior to submission to OSC. In addition, we recommend enhanced oversight of policies and procedures to ensure they are consistently applied and the SEFA is accurate and complete. Corrective Action Plan: See F-17 Management’s Response: The Department agrees with this finding. The SEFA Review Procedure has been updated to include more specific information regarding the calculation of amounts reported for the Special Milk Program and noncash assistance and the classification of payments made to a school as direct payments rather than subrecipient expenditures. Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 (State Number: 24-1203-01)
Internal Control over Compliance - Timing of Expenditures Reported in the Schedule of Expenditure of Federal Awards (SEFA) Requires Alignment with Federal Guidelines Federal Program Information: Federal Assistance Listing Number: 16.753 Federal Program Name: Byrne Discretionary Community Project Funding /Byrne Discretionary Grants Program Federal Agency: U.S. Department of Justice Pass-through Agency: State of California Bureau of Justice Assistance Federal Award Number: 15PBJA-22-GG-00264-BRND Federal Award Year: March 15, 2022 to September 30, 2023 Criteria: Per 2 CFR 200.510(b), Financial Statements: Schedule of Expenditures of Federal Awards (SEFA), the SEFA must include the total federal awards expended, as determined in accordance with 2 CFR 200.502, Basis for Determining Federal Awards Expended, and must align with the same reporting period as the auditee's financial statements. 2 CFR 200.502(a) specifies that the timing of when a federal award is expended is based on the occurrence of the activity related to the award. Additionally, 2 CFR 200.328, Financial Reporting, emphasizes the importance of submitting performance and financial reports that are complete, accurate, and consistent with the accounting records. Specifically: • Financial data must be derived from and consistent with the recipient's accounting records. • Reports must include all financial information in accordance with federal requirements. Condition: During our audit, we identified a discrepancy involving the federal expenditures for the Byrne Discretionary Community Project Funding/Byrne Discretionary Grants Program, totaling $1,000,000. These expenditures were incurred in FY 2023 but were reported in the SEFA for FY 2024. Additionally, we noted that the reports submitted to the federal agency lacked evident review controls to verify their completeness, accuracy, and consistency with accounting records. Cause and Effect: The City inadvertently excluded the federal expenditure for this grant from the FY2023 SEFA due to an unintentional oversight. This error was later identified and addressed by including the expenditure in the FY2024 SEFA. The oversight occurred because the equipment expenditure tied to this grant was recorded with an effective date of June 2023, while the corresponding grant funds were received and recorded in November 2023. This misalignment in timing created confusion regarding the proper fiscal year in which the expenditure should be reported. Additionally, this was a one-time funding and expenditure, and the City lacked prior experience in both receiving and reporting such grants. The absence of established procedures or review controls specific to this type of funding further contributed to the oversight. Collectively, these factors led to the omission of the expenditure from the FY 2023 SEFA, highlighting the need for improved processes to prevent similar issues in the future. Recommendation: We recommend that the City implement enhanced procedures for reviewing and reconciling grant-related expenditures and receipts to ensure accurate and timely reporting in the SEFA. Specifically, the City should: • Establish a process to track one-time or unique grants separately to ensure their proper inclusion in the correct fiscal year. • Conduct cross-departmental reviews to align the timing of expenditure recording with grant fund receipts. • Provide training to staff on federal reporting requirements, including the accurate preparation of the SEFA in compliance with 2 CFR 200.510(b) and 2 CFR 200.502(a). • Periodically audit SEFA preparation processes to identify and address any potential discrepancies promptly. • Implement thorough pre-submission reviews to ensure reports are accurate, complete, and consistent with accounting records, using checklists or tools if necessary. Views of Responsible Officials and Planned Corrective Action: The City internally identify improvement opportunities in managing grants. As a part of the City’s grant oversight improvement efforts, the City began implementing various processes and internal controls surrounding grant monitoring, which improves the SEFA drafting process and mitigates risks of future inaccuracies. These efforts began in early 2024 and include the following: • Creation of a grant policy that provides City staff with guidance, information, and expectations surrounding grants. • Creation of a master grants database that lists the general ledger fund, applicable project ledger references, status, grant type, start/end dates, granting agency, pass-through agency, grant name, assistance listing numbers, grant amounts, and the grant manager for each grant. This database is now used to verify the completeness and accuracy of the SEFA (beginning FY24). • Formal quarterly monitoring. Each quarter, the City will formally review the grants database with department contacts and grant managers to verify the completeness and accuracy of the database. The City is formalizing this process and plans to include department signoffs evidencing the review process. If any items are missing, the missing component will be identified and added to the database on a timely basis. The City will also utilize this quarterly process to review the grants policy to ensure grant managers are aware of the requirements related to their grants. • The City is in the process of formalizing the SEFA drafting process utilized during the FY24 SEFA preparation, which includes additional mitigating procedures such as reviewing all next FY federal receipts to ensure none of them relate to the SEFA year federal expenditures. Personnel Responsible for Implementation: Marvin Lopez Position of Responsible Personnel: Deputy Administrative Services Director (Fiscal Services) Expected Date of Implementation: June 30, 2025
Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number: 21.027 Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance (Modified Opinion) Criteria: Per 2 CFR sections 200.332(d) through (f), a pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves the performance goals. Per 2 CFR section 200.502(a), the determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs which is generally expenditure/expense transactions associated with awards. Condition: During our testing over subrecipient monitoring, the County was unable to provide subrecipient monitoring support. Questioned Costs: None Context: We selected 8 samples as part of our testing over Subrecipient Monitoring. Of the 8 samples selected, the County was unable to provide adequate support for the subrecipients selected. Cause: The County has policies that require departments to conduct subrecipient monitoring to ensure compliance with grant requirements. However, the policy does not include documentation of these monitoring activities, such as site visits, financial reviews, or performance evaluations. This lack of documentation results in an inability to verify that subrecipient monitoring is being performed effectively and consistently. Effect: Without proper oversight, subrecipients may fail to achieve program goals and objectives, leading to poor performance and outcomes for the funded programs. Repeat Finding: No Recommendation: We recommend that the County implement procedures to ensure that federal guidance is followed related to subrecipient monitoring and provide trainings on these procedures, including maintaining documentation of the review performed by the County. View of Responsible Officials: There is no disagreement with the audit finding.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees 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 (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Finding Reference Number: 2024-006 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF00995-00, F22AF00929-00, F23AF03086-00, F22AF00514-01, F22AF02616-02, F19AF00556-01, F21AF04030-06, F22AF03670-01 Federal Award Year: 2019, 2021, 2022, 2023 U.S. Department of Interior Compliance Requirement: SEFA Reporting Type of Finding: Material Weakness and Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR section 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, section 200.510(b) states the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide 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. Condition The New Hampshire Fish and Game Department (the Department) oversees 25 different grants funded under the Fish and Wildlife Cluster (the Program). To assist in the management of the grants, the Department uses QuickBooks as their main system of books and records, rather than the State of New Hampshire’s centralized accounting system, NH First. The Department manually enters expenditure transactional data into QuickBooks and heavily relies on a number of excel tracking sheets to track expenditures, cash draws, and in-kind match earned for each of the 25 grants. During our testwork over the Program, we identified the following: A. For 2 of 25 grants, we identified that there were out of period costs that were included on the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2024. Specifically we identified the following: a. For 1 of the 2 grants, the Department, included $247,562 of the expenditures that were paid between March 17, 2017 and January 13, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. b. For the other 1 of 2 grants, the Department included $761 of expenditures that were paid on February 10, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. B. For 1 of 25 grants, the Department reported on the SEFA the amount reimbursed through the cash draw process as of June 30, 2024 rather than expenditures paid during that same period. As such, the amount reported on the June 30, 2024 SEFA was understated by $14,830. C. For 1 of 25 grants, we were unable to reconcile the amount reported on the SEFA. For the grant, the Department included $2,637,617 of expenditures on the June 30, 2024 SEFA. As part of our review of the expenditures reported, we were unable to recalculate the amount included by the Department. Based upon the total expenditures incurred during the period ending June 30, 2024, it appeared that the amount that should have been reported was $2,755,548. As such, it appeared that the June 30 2024 was understated by $117,931. D. For 5 of 5 grants that reported subrecipient pass through expenditures, it appeared that the Department reported pass-through expenditures on the SEFA that included both the state and federal share of the costs, resulting in the pass-through amount being overstated by $118,195. Cause The cause of the condition found appears to be related to the heavy reliance on manual spreadsheets and QuickBooks. The manual data entry into QuickBooks and the use of spreadsheets are susceptible to human error. As the Department does not have any internal controls in place to ensure the spreadsheets or QuickBooks reconcile to NH First, if there was an error in the data used by the Department, it would be difficult to detect. In addition, the Department incorrectly included prior period costs on the SEFA as it had been believed that since the costs had not previously been reported but were eligible for reimbursement should be included on the June 30, 2024 SEFA. Effect The effect of the condition found is that the expenditures and subrecipient pass through amounts were not accurately presented on the SEFA. Questioned Costs: Not determinable. Recommendation We recommend that the Department develop written policies and procedures and implement internal controls to ensure all spreadsheets utilized to manage the program reconcile to QuickBooks and that QuickBooks reconciles to NH first on a routine basis. The Department should also implement internal controls to evaluate the amounts reported on the SEFA to ensure that only current period expenditures that are eligible for reimbursement are reported on the SEFA. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, we were unable to obtain documentation that supported a reconciliation between QuickBooks and New Hampshire First was performed. The amounts reported on the SEFA by the Department for this program were not complete and accurate.
Finding Reference Number: 2024-007 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF02312-00, F21AF04100-02, F22AF02844-00, F24AF00586-00, F23AF02720-00, F21AF03886-03, F20AF11939-04, F23AF02954-00, F23AF02609-00, F23AF02714-01, F19AF00556-01, F19AF00556-01, F22AF03670-01, F19AF00556-01, F22AF02616-02, F22AF00514-01, F19AF00556-01, F21AF04030-06 Federal Award Year: 2019, 2020 2021, 2022, 2023, 2024 U.S. Department of Interior Compliance Requirement: Activities Allowed or Unallowed/Allowable Costs/Costs Principles Type of Finding: Material Weakness and Material Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Per Part 3 of the Compliance Supplement, costs must be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-federal entity in order to be allowable under federal awards. Further per 2 CFR section 200.502, 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, such as expenditure/expense transactions associated with grants. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide 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. Condition During our testwork over Activities Allowed or Unallowed/Allowable Costs/Costs Principles, we identified the following: A. For 18 of 25 payroll and fringe benefit costs selected for testwork, we were unable to agree the payroll and fringe benefit costs charged to the Fish and Wildlife Cluster (the program) to the State of New Hampshire’s centralized accounting system, NH First. The New Hampshire Department of Fish and Game (the Department) does not charge payroll and fringe benefit costs incurred by the program as processed in NH First. Instead, the Department utilizes an internally calculated "federal rate" that is used to charge both payroll and fringe benefit costs based upon the number of hours worked to the program. As described by the Department, the federal rate is calculated based upon an employee's fringe benefits, the approved NH First pay rate, and the employee’s years of service. While we were able to recalculate the employee’s payroll and fringe benefit amounts for each of the 20 samples selected testwork as recorded in NH First, we were not able to reconcile this amount to what the Department actually charged the program. A variance of $9,754 was identified and included in the Questioned Cost amount below. B. For 5 of 25 payroll costs selected for testwork, we were unable to obtain support to substantiate the payroll costs recorded by the Department, including the Fish and Game Activity Task Report, which shows the Department's method of allocating time and payroll to the Cluster. As a result, we were unable to reconcile the amount paid in NH First of $11,541 to what the Department had allocated to the program. While we were able to recalculate the employee’s payroll and fringe benefit amounts for each of the 5 samples selected based upon what was recorded in NH First, we were not able to reconcile this amount to what the Department had actually charged the program. Since we were unable to determine what was charged to the program this amount is not a known questioned cost below. C. Indirect costs charged to the program are based upon the Department's "federal rate" calculation of payroll and fringe benefit costs as described above in Bullet A. As a result, we were unable to substantiate the basis upon which the indirect cost rate was applied for all 25 payroll periods for testwork. We further noted that for 2 of 25 payroll periods selected for testwork, the indirect costs drawn down at the time of grant close out in proportion to the payroll drawn down exceeded the 18.19% indirect cost rate that should be applied to payroll. A variance of $1,655 was identified and included in the Questioned Cost amount below. D. During our testwork over the allowability of non-payroll costs, we identified that for 2 of 60 invoices selected for testwork, the invoice was not approved by the Division Chief prior to payment as required. Of the 2 invoices, 1 invoice was approved by the program supervisor and 1 invoice did not contain any evidence of it being approved. While the invoices did not appear to be properly reviewed, the amount paid appeared to be properly supported and as such, no questioned costs were identified. Cause The cause of the condition found is that the Department does not utilize the NH First system as the basis to charge payroll, fringe and indirect costs to the program. As described in the condition found above, the Department performs its own calculation of what the payroll and fringe benefit costs are based upon the Department’s calculated federal rate and then subsequently data enters their calculated expenditure information into QuickBooks. The Department uses QuickBooks to track all federal expenditures under the program by individual federal grant. The Department does not perform any reconciliations to ensure what was entered into QuickBooks reconciles to the NH First system in order to verify that the data in QuickBooks is complete and accurate. In addition, the cause of the condition found related to the review and approval of non-payroll costs is primarily a result of insufficient internal controls in place to ensure all invoices are reviewed and approved prior to payment. Effect The effect of the condition found is that the Department would be unable to detect an error within the amounts data entered into QuickBooks and the amount allocated to the program could be inaccurate. In addition, insufficient review and approval of non-payroll expenditures could result in unallowable costs charged to the program. Questioned Costs: $11,409 Recommendation We recommend that the Department develop written policies and procedures that outline how payroll and fringe benefit costs are charged to the program and implement controls to ensure the amount of payroll and fringe benefits entered into QuickBooks properly reconciles to NH First as part of its routine payroll process. We also recommend that the Department implement internal controls to ensure that the correct indirect cost rate is utilized based upon the applicable time period for which indirect costs are being calculated. Finally, we recommend that the Department review its existing policies and procedures related to the review and approval of non-payroll expenditures to ensure that they are properly reviewed and approved prior to payment. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, the Department did not provide documentation to support that QuickBooks is reconciled to New Hampshire First to ensure that the data within QuickBooks is complete and accurate. Within Bullets B and C were unable to obtain documentation to support these transactions from the Department within a timely manner. As a result of our audit procedures, we identified questioned costs of $11,409. We further note that the NH First system does allow for the allocation of employee salaries to grants from the standard or normal accounting assignment of their costs. The Department has elected not to implement this model.
Finding Reference Number: 2024-006 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF00995-00, F22AF00929-00, F23AF03086-00, F22AF00514-01, F22AF02616-02, F19AF00556-01, F21AF04030-06, F22AF03670-01 Federal Award Year: 2019, 2021, 2022, 2023 U.S. Department of Interior Compliance Requirement: SEFA Reporting Type of Finding: Material Weakness and Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR section 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, section 200.510(b) states the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide 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. Condition The New Hampshire Fish and Game Department (the Department) oversees 25 different grants funded under the Fish and Wildlife Cluster (the Program). To assist in the management of the grants, the Department uses QuickBooks as their main system of books and records, rather than the State of New Hampshire’s centralized accounting system, NH First. The Department manually enters expenditure transactional data into QuickBooks and heavily relies on a number of excel tracking sheets to track expenditures, cash draws, and in-kind match earned for each of the 25 grants. During our testwork over the Program, we identified the following: A. For 2 of 25 grants, we identified that there were out of period costs that were included on the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2024. Specifically we identified the following: a. For 1 of the 2 grants, the Department, included $247,562 of the expenditures that were paid between March 17, 2017 and January 13, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. b. For the other 1 of 2 grants, the Department included $761 of expenditures that were paid on February 10, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. B. For 1 of 25 grants, the Department reported on the SEFA the amount reimbursed through the cash draw process as of June 30, 2024 rather than expenditures paid during that same period. As such, the amount reported on the June 30, 2024 SEFA was understated by $14,830. C. For 1 of 25 grants, we were unable to reconcile the amount reported on the SEFA. For the grant, the Department included $2,637,617 of expenditures on the June 30, 2024 SEFA. As part of our review of the expenditures reported, we were unable to recalculate the amount included by the Department. Based upon the total expenditures incurred during the period ending June 30, 2024, it appeared that the amount that should have been reported was $2,755,548. As such, it appeared that the June 30 2024 was understated by $117,931. D. For 5 of 5 grants that reported subrecipient pass through expenditures, it appeared that the Department reported pass-through expenditures on the SEFA that included both the state and federal share of the costs, resulting in the pass-through amount being overstated by $118,195. Cause The cause of the condition found appears to be related to the heavy reliance on manual spreadsheets and QuickBooks. The manual data entry into QuickBooks and the use of spreadsheets are susceptible to human error. As the Department does not have any internal controls in place to ensure the spreadsheets or QuickBooks reconcile to NH First, if there was an error in the data used by the Department, it would be difficult to detect. In addition, the Department incorrectly included prior period costs on the SEFA as it had been believed that since the costs had not previously been reported but were eligible for reimbursement should be included on the June 30, 2024 SEFA. Effect The effect of the condition found is that the expenditures and subrecipient pass through amounts were not accurately presented on the SEFA. Questioned Costs: Not determinable. Recommendation We recommend that the Department develop written policies and procedures and implement internal controls to ensure all spreadsheets utilized to manage the program reconcile to QuickBooks and that QuickBooks reconciles to NH first on a routine basis. The Department should also implement internal controls to evaluate the amounts reported on the SEFA to ensure that only current period expenditures that are eligible for reimbursement are reported on the SEFA. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, we were unable to obtain documentation that supported a reconciliation between QuickBooks and New Hampshire First was performed. The amounts reported on the SEFA by the Department for this program were not complete and accurate.
Finding Reference Number: 2024-007 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF02312-00, F21AF04100-02, F22AF02844-00, F24AF00586-00, F23AF02720-00, F21AF03886-03, F20AF11939-04, F23AF02954-00, F23AF02609-00, F23AF02714-01, F19AF00556-01, F19AF00556-01, F22AF03670-01, F19AF00556-01, F22AF02616-02, F22AF00514-01, F19AF00556-01, F21AF04030-06 Federal Award Year: 2019, 2020 2021, 2022, 2023, 2024 U.S. Department of Interior Compliance Requirement: Activities Allowed or Unallowed/Allowable Costs/Costs Principles Type of Finding: Material Weakness and Material Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Per Part 3 of the Compliance Supplement, costs must be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-federal entity in order to be allowable under federal awards. Further per 2 CFR section 200.502, 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, such as expenditure/expense transactions associated with grants. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide 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. Condition During our testwork over Activities Allowed or Unallowed/Allowable Costs/Costs Principles, we identified the following: A. For 18 of 25 payroll and fringe benefit costs selected for testwork, we were unable to agree the payroll and fringe benefit costs charged to the Fish and Wildlife Cluster (the program) to the State of New Hampshire’s centralized accounting system, NH First. The New Hampshire Department of Fish and Game (the Department) does not charge payroll and fringe benefit costs incurred by the program as processed in NH First. Instead, the Department utilizes an internally calculated "federal rate" that is used to charge both payroll and fringe benefit costs based upon the number of hours worked to the program. As described by the Department, the federal rate is calculated based upon an employee's fringe benefits, the approved NH First pay rate, and the employee’s years of service. While we were able to recalculate the employee’s payroll and fringe benefit amounts for each of the 20 samples selected testwork as recorded in NH First, we were not able to reconcile this amount to what the Department actually charged the program. A variance of $9,754 was identified and included in the Questioned Cost amount below. B. For 5 of 25 payroll costs selected for testwork, we were unable to obtain support to substantiate the payroll costs recorded by the Department, including the Fish and Game Activity Task Report, which shows the Department's method of allocating time and payroll to the Cluster. As a result, we were unable to reconcile the amount paid in NH First of $11,541 to what the Department had allocated to the program. While we were able to recalculate the employee’s payroll and fringe benefit amounts for each of the 5 samples selected based upon what was recorded in NH First, we were not able to reconcile this amount to what the Department had actually charged the program. Since we were unable to determine what was charged to the program this amount is not a known questioned cost below. C. Indirect costs charged to the program are based upon the Department's "federal rate" calculation of payroll and fringe benefit costs as described above in Bullet A. As a result, we were unable to substantiate the basis upon which the indirect cost rate was applied for all 25 payroll periods for testwork. We further noted that for 2 of 25 payroll periods selected for testwork, the indirect costs drawn down at the time of grant close out in proportion to the payroll drawn down exceeded the 18.19% indirect cost rate that should be applied to payroll. A variance of $1,655 was identified and included in the Questioned Cost amount below. D. During our testwork over the allowability of non-payroll costs, we identified that for 2 of 60 invoices selected for testwork, the invoice was not approved by the Division Chief prior to payment as required. Of the 2 invoices, 1 invoice was approved by the program supervisor and 1 invoice did not contain any evidence of it being approved. While the invoices did not appear to be properly reviewed, the amount paid appeared to be properly supported and as such, no questioned costs were identified. Cause The cause of the condition found is that the Department does not utilize the NH First system as the basis to charge payroll, fringe and indirect costs to the program. As described in the condition found above, the Department performs its own calculation of what the payroll and fringe benefit costs are based upon the Department’s calculated federal rate and then subsequently data enters their calculated expenditure information into QuickBooks. The Department uses QuickBooks to track all federal expenditures under the program by individual federal grant. The Department does not perform any reconciliations to ensure what was entered into QuickBooks reconciles to the NH First system in order to verify that the data in QuickBooks is complete and accurate. In addition, the cause of the condition found related to the review and approval of non-payroll costs is primarily a result of insufficient internal controls in place to ensure all invoices are reviewed and approved prior to payment. Effect The effect of the condition found is that the Department would be unable to detect an error within the amounts data entered into QuickBooks and the amount allocated to the program could be inaccurate. In addition, insufficient review and approval of non-payroll expenditures could result in unallowable costs charged to the program. Questioned Costs: $11,409 Recommendation We recommend that the Department develop written policies and procedures that outline how payroll and fringe benefit costs are charged to the program and implement controls to ensure the amount of payroll and fringe benefits entered into QuickBooks properly reconciles to NH First as part of its routine payroll process. We also recommend that the Department implement internal controls to ensure that the correct indirect cost rate is utilized based upon the applicable time period for which indirect costs are being calculated. Finally, we recommend that the Department review its existing policies and procedures related to the review and approval of non-payroll expenditures to ensure that they are properly reviewed and approved prior to payment. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, the Department did not provide documentation to support that QuickBooks is reconciled to New Hampshire First to ensure that the data within QuickBooks is complete and accurate. Within Bullets B and C were unable to obtain documentation to support these transactions from the Department within a timely manner. As a result of our audit procedures, we identified questioned costs of $11,409. We further note that the NH First system does allow for the allocation of employee salaries to grants from the standard or normal accounting assignment of their costs. The Department has elected not to implement this model.
Finding Reference Number: 2024-006 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF00995-00, F22AF00929-00, F23AF03086-00, F22AF00514-01, F22AF02616-02, F19AF00556-01, F21AF04030-06, F22AF03670-01 Federal Award Year: 2019, 2021, 2022, 2023 U.S. Department of Interior Compliance Requirement: SEFA Reporting Type of Finding: Material Weakness and Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR section 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, section 200.510(b) states the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide 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. Condition The New Hampshire Fish and Game Department (the Department) oversees 25 different grants funded under the Fish and Wildlife Cluster (the Program). To assist in the management of the grants, the Department uses QuickBooks as their main system of books and records, rather than the State of New Hampshire’s centralized accounting system, NH First. The Department manually enters expenditure transactional data into QuickBooks and heavily relies on a number of excel tracking sheets to track expenditures, cash draws, and in-kind match earned for each of the 25 grants. During our testwork over the Program, we identified the following: A. For 2 of 25 grants, we identified that there were out of period costs that were included on the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2024. Specifically we identified the following: a. For 1 of the 2 grants, the Department, included $247,562 of the expenditures that were paid between March 17, 2017 and January 13, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. b. For the other 1 of 2 grants, the Department included $761 of expenditures that were paid on February 10, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. B. For 1 of 25 grants, the Department reported on the SEFA the amount reimbursed through the cash draw process as of June 30, 2024 rather than expenditures paid during that same period. As such, the amount reported on the June 30, 2024 SEFA was understated by $14,830. C. For 1 of 25 grants, we were unable to reconcile the amount reported on the SEFA. For the grant, the Department included $2,637,617 of expenditures on the June 30, 2024 SEFA. As part of our review of the expenditures reported, we were unable to recalculate the amount included by the Department. Based upon the total expenditures incurred during the period ending June 30, 2024, it appeared that the amount that should have been reported was $2,755,548. As such, it appeared that the June 30 2024 was understated by $117,931. D. For 5 of 5 grants that reported subrecipient pass through expenditures, it appeared that the Department reported pass-through expenditures on the SEFA that included both the state and federal share of the costs, resulting in the pass-through amount being overstated by $118,195. Cause The cause of the condition found appears to be related to the heavy reliance on manual spreadsheets and QuickBooks. The manual data entry into QuickBooks and the use of spreadsheets are susceptible to human error. As the Department does not have any internal controls in place to ensure the spreadsheets or QuickBooks reconcile to NH First, if there was an error in the data used by the Department, it would be difficult to detect. In addition, the Department incorrectly included prior period costs on the SEFA as it had been believed that since the costs had not previously been reported but were eligible for reimbursement should be included on the June 30, 2024 SEFA. Effect The effect of the condition found is that the expenditures and subrecipient pass through amounts were not accurately presented on the SEFA. Questioned Costs: Not determinable. Recommendation We recommend that the Department develop written policies and procedures and implement internal controls to ensure all spreadsheets utilized to manage the program reconcile to QuickBooks and that QuickBooks reconciles to NH first on a routine basis. The Department should also implement internal controls to evaluate the amounts reported on the SEFA to ensure that only current period expenditures that are eligible for reimbursement are reported on the SEFA. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, we were unable to obtain documentation that supported a reconciliation between QuickBooks and New Hampshire First was performed. The amounts reported on the SEFA by the Department for this program were not complete and accurate.
Finding Reference Number: 2024-007 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF02312-00, F21AF04100-02, F22AF02844-00, F24AF00586-00, F23AF02720-00, F21AF03886-03, F20AF11939-04, F23AF02954-00, F23AF02609-00, F23AF02714-01, F19AF00556-01, F19AF00556-01, F22AF03670-01, F19AF00556-01, F22AF02616-02, F22AF00514-01, F19AF00556-01, F21AF04030-06 Federal Award Year: 2019, 2020 2021, 2022, 2023, 2024 U.S. Department of Interior Compliance Requirement: Activities Allowed or Unallowed/Allowable Costs/Costs Principles Type of Finding: Material Weakness and Material Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Per Part 3 of the Compliance Supplement, costs must be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-federal entity in order to be allowable under federal awards. Further per 2 CFR section 200.502, 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, such as expenditure/expense transactions associated with grants. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide 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. Condition During our testwork over Activities Allowed or Unallowed/Allowable Costs/Costs Principles, we identified the following: A. For 18 of 25 payroll and fringe benefit costs selected for testwork, we were unable to agree the payroll and fringe benefit costs charged to the Fish and Wildlife Cluster (the program) to the State of New Hampshire’s centralized accounting system, NH First. The New Hampshire Department of Fish and Game (the Department) does not charge payroll and fringe benefit costs incurred by the program as processed in NH First. Instead, the Department utilizes an internally calculated "federal rate" that is used to charge both payroll and fringe benefit costs based upon the number of hours worked to the program. As described by the Department, the federal rate is calculated based upon an employee's fringe benefits, the approved NH First pay rate, and the employee’s years of service. While we were able to recalculate the employee’s payroll and fringe benefit amounts for each of the 20 samples selected testwork as recorded in NH First, we were not able to reconcile this amount to what the Department actually charged the program. A variance of $9,754 was identified and included in the Questioned Cost amount below. B. For 5 of 25 payroll costs selected for testwork, we were unable to obtain support to substantiate the payroll costs recorded by the Department, including the Fish and Game Activity Task Report, which shows the Department's method of allocating time and payroll to the Cluster. As a result, we were unable to reconcile the amount paid in NH First of $11,541 to what the Department had allocated to the program. While we were able to recalculate the employee’s payroll and fringe benefit amounts for each of the 5 samples selected based upon what was recorded in NH First, we were not able to reconcile this amount to what the Department had actually charged the program. Since we were unable to determine what was charged to the program this amount is not a known questioned cost below. C. Indirect costs charged to the program are based upon the Department's "federal rate" calculation of payroll and fringe benefit costs as described above in Bullet A. As a result, we were unable to substantiate the basis upon which the indirect cost rate was applied for all 25 payroll periods for testwork. We further noted that for 2 of 25 payroll periods selected for testwork, the indirect costs drawn down at the time of grant close out in proportion to the payroll drawn down exceeded the 18.19% indirect cost rate that should be applied to payroll. A variance of $1,655 was identified and included in the Questioned Cost amount below. D. During our testwork over the allowability of non-payroll costs, we identified that for 2 of 60 invoices selected for testwork, the invoice was not approved by the Division Chief prior to payment as required. Of the 2 invoices, 1 invoice was approved by the program supervisor and 1 invoice did not contain any evidence of it being approved. While the invoices did not appear to be properly reviewed, the amount paid appeared to be properly supported and as such, no questioned costs were identified. Cause The cause of the condition found is that the Department does not utilize the NH First system as the basis to charge payroll, fringe and indirect costs to the program. As described in the condition found above, the Department performs its own calculation of what the payroll and fringe benefit costs are based upon the Department’s calculated federal rate and then subsequently data enters their calculated expenditure information into QuickBooks. The Department uses QuickBooks to track all federal expenditures under the program by individual federal grant. The Department does not perform any reconciliations to ensure what was entered into QuickBooks reconciles to the NH First system in order to verify that the data in QuickBooks is complete and accurate. In addition, the cause of the condition found related to the review and approval of non-payroll costs is primarily a result of insufficient internal controls in place to ensure all invoices are reviewed and approved prior to payment. Effect The effect of the condition found is that the Department would be unable to detect an error within the amounts data entered into QuickBooks and the amount allocated to the program could be inaccurate. In addition, insufficient review and approval of non-payroll expenditures could result in unallowable costs charged to the program. Questioned Costs: $11,409 Recommendation We recommend that the Department develop written policies and procedures that outline how payroll and fringe benefit costs are charged to the program and implement controls to ensure the amount of payroll and fringe benefits entered into QuickBooks properly reconciles to NH First as part of its routine payroll process. We also recommend that the Department implement internal controls to ensure that the correct indirect cost rate is utilized based upon the applicable time period for which indirect costs are being calculated. Finally, we recommend that the Department review its existing policies and procedures related to the review and approval of non-payroll expenditures to ensure that they are properly reviewed and approved prior to payment. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, the Department did not provide documentation to support that QuickBooks is reconciled to New Hampshire First to ensure that the data within QuickBooks is complete and accurate. Within Bullets B and C were unable to obtain documentation to support these transactions from the Department within a timely manner. As a result of our audit procedures, we identified questioned costs of $11,409. We further note that the NH First system does allow for the allocation of employee salaries to grants from the standard or normal accounting assignment of their costs. The Department has elected not to implement this model.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.