Timely Financial Statements and Audit-Material Weakness in Internal Control and Failure to Comply with State and Federal Requirements of Grants and Contracts. Criteria: The Uniform Guidance – 2 CFR 200.508(b) and 2 CFR 200.508(d) – state: “The auditee must: …(b) Prepare appropriate financial statements, including the schedule of Federal awards in accordance with §200.510…(d) Provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by this part.” Also, the Uniform Guidance §200.512 requires “the audit be completed and the data collection form described in paragraph (b) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period.” Condition: The delay in finalization of the audit report was directly related to circumstances experienced by the prior audit firm. During this timeframe the audit firm lost two audit staff, one auditor with experience since 1986 retired and another left due to family matters. These personnel were key to the audit firm’s operations and thus far, the audit firm has been unsuccessful in replacing these staff members. Further, a co-owner of the audit firm had surgery, and the recuperative time has taken longer than expected. The co-owner was recently hospitalized again for issues related to the surgery. The combination of these circumstances lead to the prior audit firm closing and resigning it’s engagement. Subsequently the Southern Workforce Board, Inc. was required to begin procurement procedures through it’s request for proposal process. The procurement process, selection of an audit firm and timing of predecessor audit firm schedule directly impacted the completion of the audit. Cause/Effect: Southern Workforce Board, Inc. is out of compliance with the reporting deadline for the audit. Recommendation: Southern Workforce Board, Inc. financial records were finalized, complete, closed, reconciled and available for audit in sufficient time to meet the audit submission requirements of Uniform Guidance. The late submission was due to no fault of Southern Workforce Board, Inc. as they were prepared for the audit as they have been consistently over the years. Reply: See corrective action plan.
Timely Financial Statements and Audit-Material Weakness in Internal Control and Failure to Comply with State and Federal Requirements of Grants and Contracts. Criteria: The Uniform Guidance – 2 CFR 200.508(b) and 2 CFR 200.508(d) – state: “The auditee must: …(b) Prepare appropriate financial statements, including the schedule of Federal awards in accordance with §200.510…(d) Provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by this part.” Also, the Uniform Guidance §200.512 requires “the audit be completed and the data collection form described in paragraph (b) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period.” Condition: The delay in finalization of the audit report was directly related to circumstances experienced by the prior audit firm. During this timeframe the audit firm lost two audit staff, one auditor with experience since 1986 retired and another left due to family matters. These personnel were key to the audit firm’s operations and thus far, the audit firm has been unsuccessful in replacing these staff members. Further, a co-owner of the audit firm had surgery, and the recuperative time has taken longer than expected. The co-owner was recently hospitalized again for issues related to the surgery. The combination of these circumstances lead to the prior audit firm closing and resigning it’s engagement. Subsequently the Southern Workforce Board, Inc. was required to begin procurement procedures through it’s request for proposal process. The procurement process, selection of an audit firm and timing of predecessor audit firm schedule directly impacted the completion of the audit. Cause/Effect: Southern Workforce Board, Inc. is out of compliance with the reporting deadline for the audit. Recommendation: Southern Workforce Board, Inc. financial records were finalized, complete, closed, reconciled and available for audit in sufficient time to meet the audit submission requirements of Uniform Guidance. The late submission was due to no fault of Southern Workforce Board, Inc. as they were prepared for the audit as they have been consistently over the years. Reply: See corrective action plan.
Finding 2023-004 - Accounting for Grants, Schedule of Expenditures of Federal Awards, and Fiscal Manage-ment (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, in-cluding the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount pro-vided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial state-ments. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Errors in recording and reporting of revenues and expenditures of federal awards may not be detected and/or corrected. Because the Auditee’s SEFA that was presented for audit was completed incor-rectly, and not reconciled to the general ledger, the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • Inadequate reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: November 1, 2024 Responsible Person: District Business Manager
Finding 2023-004 - Accounting for Grants, Schedule of Expenditures of Federal Awards, and Fiscal Manage-ment (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, in-cluding the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount pro-vided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial state-ments. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Errors in recording and reporting of revenues and expenditures of federal awards may not be detected and/or corrected. Because the Auditee’s SEFA that was presented for audit was completed incor-rectly, and not reconciled to the general ledger, the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • Inadequate reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: November 1, 2024 Responsible Person: District Business Manager
Condition: During our review and reconciliation of the Schedule of Expenditures of Federal Awards (SEFA) as initially prepared by the County, we identified federal programs that were not listed accurately which resulted in federal expenditures being overstated stated by $929,420 • Expenditures reported on the SEFA for ALN 16.607 - Bulletproof Vest Partnership Program were $0. Actual federal expenditures obtained from the County’s records confirm $17,235 expended for a variance of ($17,235). • Expenditures reported on the SEFA for ALN 16.554 - National Criminal History Improvement Program (NCHIP) were $0. Actual federal expenditures obtained from the County’s records confirm $1,788 expended for a variance of ($1,788). • Expenditures reported on the SEFA for ALN 21.019 - Coronavirus Relief Fund were $1,100,510. Actual federal expenditures obtained from the County’s records confirm $0 expended for a variance of $1,100,510. • Expenditures reported on the SEFA for ALN 97.036 - Disaster Grants - Public Assistance (Presidentially Declared Disasters) - DR-4530 were $0. Actual federal expenditures obtained from the County’s records confirm $144,826 expended for a variance of ($144,826). • Expenditures reported on the SEFA for ALN 97.036 - Disaster Grants - Public Assistance (Presidentially Declared Disasters) - DR-4530 were $0. Actual federal expenditures obtained from the County’s records confirm $7,241 expended for a variance of ($7,241). Additionally, the County failed to present $4,199,136 in subrecipient expenditures on the SEFA for ALN 21.027 - Coronavirus State and Local Fiscal Recovery Funds. Cause of Condition: Policies and procedures have not been designed and implemented to ensure accurate reporting of expenditures for all federal awards. Effect of Condition: This condition resulted in inaccurate recording of the federal expenditures on the SEFA. Recommendation: OSAI recommends county officials and department heads gain an understanding of federal programs awarded to Rogers County. Internal control procedures should be designed and implemented to ensure accurate reporting of expenditures on the SEFA and to ensure compliance with federal requirements. The Board of County Commissioners (BOCC) should review and approve SEFA in an open meeting. Management Response: Board of County Commissioners: The Board of County Commissioners is responsible for the overall fiscal concerns of the county. See OKLA. STAT. Title 19, § 345. The Board of County Commissioners, with the cooperation and participation of all elected officials, reviews, develops and implements policies and procedures to create a strong internal control environment. Additionally, the Board of County Commissioners conducts meetings with all elected officials and officers responsible for the receipt and/or expenditure of county funds. These meetings address fiscal matters, including but not limited to, policy discussions and implementation, financial reports, budget oversight, SEFA reporting, and legal compliance. Policies and procedures, combined with fiscal oversight meetings, are intended to: 1) prevent or detect material misstatements in the financial statements; 2) prevent or detect fraud within the county; 3) increase communication between the Board of County Commissioners and those elected officials and officers responsible for the receipt and/or expenditure of public funds; 4) provide oversight over the fiscal concerns of the county; 5) identify and address risks related to financial reporting; 6) ensure the accuracy of Rogers County’s financial statements, Estimate of Needs, and the SEFA; and 7) ensure compliance with all applicable federal and state laws, regulations, and/or codes. The Board of County Commissioners, with the cooperation of all elected officials and officers responsible for the receipt or expenditure of federal funds, will evaluate the processes and procedures currently in place to ensure the accuracy of SEFA reporting and detect potential inaccuracies and/or misstatements. Criteria: 2 CFR § 200.303(a) Internal Controls reads as follows: The non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 2 CFR § 200.508(b) Auditee responsibilities reads as follows: The auditee must: Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. 2 CFR § 200.510(b) Financial statements reads, in part, as follows: Schedule of expenditures of Federal awards. 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 Basis for determining Federal awards expended. Further, GAO Standards – Section 2 – Objectives of an Entity - OV2.23 states in part: Compliance Objectives Management conducts activities in accordance with applicable laws and regulations. As part of specifying compliance objectives, the entity determines which laws and regulations apply to the entity. Management is expected to set objectives that incorporate these requirements.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The SEFA did not include the following programs: o U.S. Department of Labor 17.225 Unemployment Insurance Navigator o U.S. Treasury 21.027 Workforce Navigator o U.S. Department of Health and Human Services 93.268 Immunization Services • U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678 • U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265 Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The SEFA did not include the following programs: o U.S. Department of Labor 17.225 Unemployment Insurance Navigator o U.S. Treasury 21.027 Workforce Navigator o U.S. Department of Health and Human Services 93.268 Immunization Services • U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678 • U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265 Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The SEFA did not include the following programs: o U.S. Department of Labor 17.225 Unemployment Insurance Navigator o U.S. Treasury 21.027 Workforce Navigator o U.S. Department of Health and Human Services 93.268 Immunization Services • U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678 • U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265 Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The SEFA did not include the following programs: o U.S. Department of Labor 17.225 Unemployment Insurance Navigator o U.S. Treasury 21.027 Workforce Navigator o U.S. Department of Health and Human Services 93.268 Immunization Services • U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678 • U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265 Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The SEFA did not include the following programs: o U.S. Department of Labor 17.225 Unemployment Insurance Navigator o U.S. Treasury 21.027 Workforce Navigator o U.S. Department of Health and Human Services 93.268 Immunization Services • U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678 • U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265 Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The SEFA did not include the following programs: o U.S. Department of Labor 17.225 Unemployment Insurance Navigator o U.S. Treasury 21.027 Workforce Navigator o U.S. Department of Health and Human Services 93.268 Immunization Services • U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678 • U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265 Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The SEFA did not include the following programs: o U.S. Department of Labor 17.225 Unemployment Insurance Navigator o U.S. Treasury 21.027 Workforce Navigator o U.S. Department of Health and Human Services 93.268 Immunization Services • U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678 • U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265 Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
Finding 2022-001 Criteria or Specific Requirement: Management is responsible for establishing policies and procedures for creating an appropriate financial management system to track federal grants in accordance with 2 CFR 200.508, including the preparation and presentation of the schedule of expenditures of federal awards. Condition: Grant revenue in the prior year was not accrued to present reimbursement grants in accordance with generally accepted accounting principles. Cause: Management records grant revenue at the time of the drawdown request without regard to the period the expenditures were incurred. Effect or Potential Effect: Grant revenue was presented in the incorrect period causing a misstatement in the schedule of expenditures of federal awards. Recommendation: We recommend the Organization implement a process to perform a financial close, including accruing expected grant revenue based on expenditures incurred during the reporting period. We also recommend the Organization implement a process to ensure the schedule of federal expenditures of federal awards is presented fairly. Views of responsible officials: Management agrees with the finding and will implement a process to review its financial closing procedures.
Finding 2022-001 Criteria or Specific Requirement: Management is responsible for establishing policies and procedures for creating an appropriate financial management system to track federal grants in accordance with 2 CFR 200.508, including the preparation and presentation of the schedule of expenditures of federal awards. Condition: Grant revenue in the prior year was not accrued to present reimbursement grants in accordance with generally accepted accounting principles. Cause: Management records grant revenue at the time of the drawdown request without regard to the period the expenditures were incurred. Effect or Potential Effect: Grant revenue was presented in the incorrect period causing a misstatement in the schedule of expenditures of federal awards. Recommendation: We recommend the Organization implement a process to perform a financial close, including accruing expected grant revenue based on expenditures incurred during the reporting period. We also recommend the Organization implement a process to ensure the schedule of federal expenditures of federal awards is presented fairly. Views of responsible officials: Management agrees with the finding and will implement a process to review its financial closing procedures.
Finding 2022-001 Criteria or Specific Requirement: Management is responsible for establishing policies and procedures for creating an appropriate financial management system to track federal grants in accordance with 2 CFR 200.508, including the preparation and presentation of the schedule of expenditures of federal awards. Condition: Grant revenue in the prior year was not accrued to present reimbursement grants in accordance with generally accepted accounting principles. Cause: Management records grant revenue at the time of the drawdown request without regard to the period the expenditures were incurred. Effect or Potential Effect: Grant revenue was presented in the incorrect period causing a misstatement in the schedule of expenditures of federal awards. Recommendation: We recommend the Organization implement a process to perform a financial close, including accruing expected grant revenue based on expenditures incurred during the reporting period. We also recommend the Organization implement a process to ensure the schedule of federal expenditures of federal awards is presented fairly. Views of responsible officials: Management agrees with the finding and will implement a process to review its financial closing procedures.
Finding 2022-001 Criteria or Specific Requirement: Management is responsible for establishing policies and procedures for creating an appropriate financial management system to track federal grants in accordance with 2 CFR 200.508, including the preparation and presentation of the schedule of expenditures of federal awards. Condition: Grant revenue in the prior year was not accrued to present reimbursement grants in accordance with generally accepted accounting principles. Cause: Management records grant revenue at the time of the drawdown request without regard to the period the expenditures were incurred. Effect or Potential Effect: Grant revenue was presented in the incorrect period causing a misstatement in the schedule of expenditures of federal awards. Recommendation: We recommend the Organization implement a process to perform a financial close, including accruing expected grant revenue based on expenditures incurred during the reporting period. We also recommend the Organization implement a process to ensure the schedule of federal expenditures of federal awards is presented fairly. Views of responsible officials: Management agrees with the finding and will implement a process to review its financial closing procedures.
Finding 2022-001 Criteria or Specific Requirement: Management is responsible for establishing policies and procedures for creating an appropriate financial management system to track federal grants in accordance with 2 CFR 200.508, including the preparation and presentation of the schedule of expenditures of federal awards. Condition: Grant revenue in the prior year was not accrued to present reimbursement grants in accordance with generally accepted accounting principles. Cause: Management records grant revenue at the time of the drawdown request without regard to the period the expenditures were incurred. Effect or Potential Effect: Grant revenue was presented in the incorrect period causing a misstatement in the schedule of expenditures of federal awards. Recommendation: We recommend the Organization implement a process to perform a financial close, including accruing expected grant revenue based on expenditures incurred during the reporting period. We also recommend the Organization implement a process to ensure the schedule of federal expenditures of federal awards is presented fairly. Views of responsible officials: Management agrees with the finding and will implement a process to review its financial closing procedures.
Finding 2022-001 Criteria or Specific Requirement: Management is responsible for establishing policies and procedures for creating an appropriate financial management system to track federal grants in accordance with 2 CFR 200.508, including the preparation and presentation of the schedule of expenditures of federal awards. Condition: Grant revenue in the prior year was not accrued to present reimbursement grants in accordance with generally accepted accounting principles. Cause: Management records grant revenue at the time of the drawdown request without regard to the period the expenditures were incurred. Effect or Potential Effect: Grant revenue was presented in the incorrect period causing a misstatement in the schedule of expenditures of federal awards. Recommendation: We recommend the Organization implement a process to perform a financial close, including accruing expected grant revenue based on expenditures incurred during the reporting period. We also recommend the Organization implement a process to ensure the schedule of federal expenditures of federal awards is presented fairly. Views of responsible officials: Management agrees with the finding and will implement a process to review its financial closing procedures.
Finding 2022-002: SEFA Preparation Agency U.S. Department of Treasury pass-through from City of Alexandria ALN 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number 55-547-8853 Criteria In accordance with 2 CFR 200.508(b), the auditee is required to prepare appropriate financial statements, including the schedule of expenditures of Federal awards (SEFA) in accordance with ?200.510. Condition and Context During our audit, we identified a conditional contribution that ACT had recorded as revenue upon receipt of the advanced funds and before the applicable barrier to recognition had been satisfied. In addition, the full amount of advanced funds was presented on the schedule of expenditures of SEFA. As a result, net assets without donor restrictions were overstated in the financial statements and expenditures were overstated on the SEFA. Cause Controls and processes were not effectively designed to ensure conditional contributions are properly recorded within the general ledger and that the SEFA is complete and accurate. Effect Net assets without donor restrictions and expenses on the SEFA were overstated by $44,999 at December 31, 2022. Repeat Finding No Recommendation We recommend management review policies and procedures over contributions received to ensure timely and effective review for any barriers to recognition and over preparation of the SEFA to ensure completeness and accuracy of the SEFA. Views of Responsible Officials of the Auditee Management agrees with the finding. See corrective action plan. Questioned Cost None.
Finding 2022-002: SEFA Preparation Agency U.S. Department of Treasury pass-through from City of Alexandria ALN 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number 55-547-8853 Criteria In accordance with 2 CFR 200.508(b), the auditee is required to prepare appropriate financial statements, including the schedule of expenditures of Federal awards (SEFA) in accordance with ?200.510. Condition and Context During our audit, we identified a conditional contribution that ACT had recorded as revenue upon receipt of the advanced funds and before the applicable barrier to recognition had been satisfied. In addition, the full amount of advanced funds was presented on the schedule of expenditures of SEFA. As a result, net assets without donor restrictions were overstated in the financial statements and expenditures were overstated on the SEFA. Cause Controls and processes were not effectively designed to ensure conditional contributions are properly recorded within the general ledger and that the SEFA is complete and accurate. Effect Net assets without donor restrictions and expenses on the SEFA were overstated by $44,999 at December 31, 2022. Repeat Finding No Recommendation We recommend management review policies and procedures over contributions received to ensure timely and effective review for any barriers to recognition and over preparation of the SEFA to ensure completeness and accuracy of the SEFA. Views of Responsible Officials of the Auditee Management agrees with the finding. See corrective action plan. Questioned Cost None.
2022-002 Material Weakness - Preparation of Schedule of Expenditures of Federal Awards (?SEFA?) Statement Condition: Under Uniform Guidance 2 CFR Section 200.508 reporting compliance, it is the auditee?s responsibility to prepare the Schedule of Expenditures of Federal Awards statement. The Uniform Guidance 2 CFR Section 200.502 requires the proper tracking and accounting of federal expenditures incurred under the same basis of accounting as the basic financial statements to ensure proper cut-off and timely reporting to the Federal Audit Clearinghouse. Criteria: Procedures should be in place to create a materially accurate schedule of expenditures of federal awards statement based on the cash basis of accounting specifically tracking expenses when they are paid. Cause: The procedures in place did not create a materially accurate schedule of expenditures of federal awards financial statement for major program compliance. For CFDA #66.458, the SEFA provided by the Authority did not represent expenditures as paid. This was a result of the bifurcation between loan and grant disbursements, as well as presentation of loan balances on the SEFA. Uniform Guidance states that SEFA loan balances should be reported as prior year outstanding loan balance plus current year borrowings. Effect: The fund used to track the expenditures did not properly reflect the federal expenditures incurred in 2022. Recommendation: Procedures should be implemented to create a materially accurate schedule of expenditures of federal award financial statement, which should include ascertaining between loan and grant expenditures, and understanding the process for reporting loan balances on the SEFA. Views of Responsible Officials and Planned Corrective Actions: In order to create a materially accurate schedule of expenditures of federal award financial statement, the Authority will establish procedures to ascertain loan and grant expenditures, as well as taking into account the Uniform Guidance requirement for presenting loan balances on the SEFA.
2022-002 Material Weakness - Preparation of Schedule of Expenditures of Federal Awards (?SEFA?) Statement Condition: Under Uniform Guidance 2 CFR Section 200.508 reporting compliance, it is the auditee?s responsibility to prepare the Schedule of Expenditures of Federal Awards statement. The Uniform Guidance 2 CFR Section 200.502 requires the proper tracking and accounting of federal expenditures incurred under the same basis of accounting as the basic financial statements to ensure proper cut-off and timely reporting to the Federal Audit Clearinghouse. Criteria: Procedures should be in place to create a materially accurate schedule of expenditures of federal awards statement based on the cash basis of accounting specifically tracking expenses when they are paid. Cause: The procedures in place did not create a materially accurate schedule of expenditures of federal awards financial statement for major program compliance. For CFDA #66.458, the SEFA provided by the Authority did not represent expenditures as paid. This was a result of the bifurcation between loan and grant disbursements, as well as presentation of loan balances on the SEFA. Uniform Guidance states that SEFA loan balances should be reported as prior year outstanding loan balance plus current year borrowings. Effect: The fund used to track the expenditures did not properly reflect the federal expenditures incurred in 2022. Recommendation: Procedures should be implemented to create a materially accurate schedule of expenditures of federal award financial statement, which should include ascertaining between loan and grant expenditures, and understanding the process for reporting loan balances on the SEFA. Views of Responsible Officials and Planned Corrective Actions: In order to create a materially accurate schedule of expenditures of federal award financial statement, the Authority will establish procedures to ascertain loan and grant expenditures, as well as taking into account the Uniform Guidance requirement for presenting loan balances on the SEFA.
2022-002 Material Weakness - Preparation of Schedule of Expenditures of Federal Awards (?SEFA?) Statement Condition: Under Uniform Guidance 2 CFR Section 200.508 reporting compliance, it is the auditee?s responsibility to prepare the Schedule of Expenditures of Federal Awards statement. The Uniform Guidance 2 CFR Section 200.502 requires the proper tracking and accounting of federal expenditures incurred under the same basis of accounting as the basic financial statements to ensure proper cut-off and timely reporting to the Federal Audit Clearinghouse. Criteria: Procedures should be in place to create a materially accurate schedule of expenditures of federal awards statement based on the cash basis of accounting specifically tracking expenses when they are paid. Cause: The procedures in place did not create a materially accurate schedule of expenditures of federal awards financial statement for major program compliance. For CFDA #66.458, the SEFA provided by the Authority did not represent expenditures as paid. This was a result of the bifurcation between loan and grant disbursements, as well as presentation of loan balances on the SEFA. Uniform Guidance states that SEFA loan balances should be reported as prior year outstanding loan balance plus current year borrowings. Effect: The fund used to track the expenditures did not properly reflect the federal expenditures incurred in 2022. Recommendation: Procedures should be implemented to create a materially accurate schedule of expenditures of federal award financial statement, which should include ascertaining between loan and grant expenditures, and understanding the process for reporting loan balances on the SEFA. Views of Responsible Officials and Planned Corrective Actions: In order to create a materially accurate schedule of expenditures of federal award financial statement, the Authority will establish procedures to ascertain loan and grant expenditures, as well as taking into account the Uniform Guidance requirement for presenting loan balances on the SEFA.
Assistance Listing Number, Federal Agency, and Program Name - 20.106, Federal Aviation Administration, Airport Improvement Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No 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 expended. Condition - The SEFA required adjustments related to expenditures that were both improperly included and excluded, resulting in revisions to correct the SEFA. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The adjustments made to the schedule of expenditures of federal awards did not impact major program determination. There were certain expenditures that were identified during testing that should have been both included on ($1,815,968) and excluded from ($882,831) the SEFA related to ALN 20.106 (Airport Improvement Program). Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively. This resulted in an inaccurate schedule of expenditures of federal awards provided for audit. Recommendation - Internal control procedures should be evaluated and revised to ensure that the schedule of expenditures of federal awards is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Proper accrual accounting will be followed with regard to reporting SEFA expenditures, with period recognition more closely monitored.
Assistance Listing Number, Federal Agency, and Program Name - 20.106, Federal Aviation Administration, Airport Improvement Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No 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 expended. Condition - The SEFA required adjustments related to expenditures that were both improperly included and excluded, resulting in revisions to correct the SEFA. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The adjustments made to the schedule of expenditures of federal awards did not impact major program determination. There were certain expenditures that were identified during testing that should have been both included on ($1,815,968) and excluded from ($882,831) the SEFA related to ALN 20.106 (Airport Improvement Program). Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively. This resulted in an inaccurate schedule of expenditures of federal awards provided for audit. Recommendation - Internal control procedures should be evaluated and revised to ensure that the schedule of expenditures of federal awards is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Proper accrual accounting will be followed with regard to reporting SEFA expenditures, with period recognition more closely monitored.
Assistance Listing Number, Federal Agency, and Program Name - 20.106, Federal Aviation Administration, Airport Improvement Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No 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 expended. Condition - The SEFA required adjustments related to expenditures that were both improperly included and excluded, resulting in revisions to correct the SEFA. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The adjustments made to the schedule of expenditures of federal awards did not impact major program determination. There were certain expenditures that were identified during testing that should have been both included on ($1,815,968) and excluded from ($882,831) the SEFA related to ALN 20.106 (Airport Improvement Program). Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively. This resulted in an inaccurate schedule of expenditures of federal awards provided for audit. Recommendation - Internal control procedures should be evaluated and revised to ensure that the schedule of expenditures of federal awards is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Proper accrual accounting will be followed with regard to reporting SEFA expenditures, with period recognition more closely monitored.
Assistance Listing Number, Federal Agency, and Program Name - 20.106, Federal Aviation Administration, Airport Improvement Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No 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 expended. Condition - The SEFA required adjustments related to expenditures that were both improperly included and excluded, resulting in revisions to correct the SEFA. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The adjustments made to the schedule of expenditures of federal awards did not impact major program determination. There were certain expenditures that were identified during testing that should have been both included on ($1,815,968) and excluded from ($882,831) the SEFA related to ALN 20.106 (Airport Improvement Program). Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively. This resulted in an inaccurate schedule of expenditures of federal awards provided for audit. Recommendation - Internal control procedures should be evaluated and revised to ensure that the schedule of expenditures of federal awards is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Proper accrual accounting will be followed with regard to reporting SEFA expenditures, with period recognition more closely monitored.
Assistance Listing Number, Federal Agency, and Program Name - 20.106, Federal Aviation Administration, Airport Improvement Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No 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 expended. Condition - The SEFA required adjustments related to expenditures that were both improperly included and excluded, resulting in revisions to correct the SEFA. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The adjustments made to the schedule of expenditures of federal awards did not impact major program determination. There were certain expenditures that were identified during testing that should have been both included on ($1,815,968) and excluded from ($882,831) the SEFA related to ALN 20.106 (Airport Improvement Program). Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively. This resulted in an inaccurate schedule of expenditures of federal awards provided for audit. Recommendation - Internal control procedures should be evaluated and revised to ensure that the schedule of expenditures of federal awards is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Proper accrual accounting will be followed with regard to reporting SEFA expenditures, with period recognition more closely monitored.
Assistance Listing Number, Federal Agency, and Program Name - 20.106, Federal Aviation Administration, Airport Improvement Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No 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 expended. Condition - The SEFA required adjustments related to expenditures that were both improperly included and excluded, resulting in revisions to correct the SEFA. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The adjustments made to the schedule of expenditures of federal awards did not impact major program determination. There were certain expenditures that were identified during testing that should have been both included on ($1,815,968) and excluded from ($882,831) the SEFA related to ALN 20.106 (Airport Improvement Program). Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively. This resulted in an inaccurate schedule of expenditures of federal awards provided for audit. Recommendation - Internal control procedures should be evaluated and revised to ensure that the schedule of expenditures of federal awards is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Proper accrual accounting will be followed with regard to reporting SEFA expenditures, with period recognition more closely monitored.
Assistance Listing Number, Federal Agency, and Program Name - 20.106, Federal Aviation Administration, Airport Improvement Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No 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 expended. Condition - The SEFA required adjustments related to expenditures that were both improperly included and excluded, resulting in revisions to correct the SEFA. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The adjustments made to the schedule of expenditures of federal awards did not impact major program determination. There were certain expenditures that were identified during testing that should have been both included on ($1,815,968) and excluded from ($882,831) the SEFA related to ALN 20.106 (Airport Improvement Program). Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively. This resulted in an inaccurate schedule of expenditures of federal awards provided for audit. Recommendation - Internal control procedures should be evaluated and revised to ensure that the schedule of expenditures of federal awards is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Proper accrual accounting will be followed with regard to reporting SEFA expenditures, with period recognition more closely monitored.
Assistance Listing Number, Federal Agency, and Program Name - 20.106, Federal Aviation Administration, Airport Improvement Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No 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 expended. Condition - The SEFA required adjustments related to expenditures that were both improperly included and excluded, resulting in revisions to correct the SEFA. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The adjustments made to the schedule of expenditures of federal awards did not impact major program determination. There were certain expenditures that were identified during testing that should have been both included on ($1,815,968) and excluded from ($882,831) the SEFA related to ALN 20.106 (Airport Improvement Program). Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively. This resulted in an inaccurate schedule of expenditures of federal awards provided for audit. Recommendation - Internal control procedures should be evaluated and revised to ensure that the schedule of expenditures of federal awards is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Proper accrual accounting will be followed with regard to reporting SEFA expenditures, with period recognition more closely monitored.
Assistance Listing Number, Federal Agency, and Program Name - 20.106, Federal Aviation Administration, Airport Improvement Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No 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 expended. Condition - The SEFA required adjustments related to expenditures that were both improperly included and excluded, resulting in revisions to correct the SEFA. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The adjustments made to the schedule of expenditures of federal awards did not impact major program determination. There were certain expenditures that were identified during testing that should have been both included on ($1,815,968) and excluded from ($882,831) the SEFA related to ALN 20.106 (Airport Improvement Program). Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively. This resulted in an inaccurate schedule of expenditures of federal awards provided for audit. Recommendation - Internal control procedures should be evaluated and revised to ensure that the schedule of expenditures of federal awards is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Proper accrual accounting will be followed with regard to reporting SEFA expenditures, with period recognition more closely monitored.
Assistance Listing Number, Federal Agency, and Program Name - 20.106, Federal Aviation Administration, Airport Improvement Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No 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 expended. Condition - The SEFA required adjustments related to expenditures that were both improperly included and excluded, resulting in revisions to correct the SEFA. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The adjustments made to the schedule of expenditures of federal awards did not impact major program determination. There were certain expenditures that were identified during testing that should have been both included on ($1,815,968) and excluded from ($882,831) the SEFA related to ALN 20.106 (Airport Improvement Program). Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively. This resulted in an inaccurate schedule of expenditures of federal awards provided for audit. Recommendation - Internal control procedures should be evaluated and revised to ensure that the schedule of expenditures of federal awards is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Proper accrual accounting will be followed with regard to reporting SEFA expenditures, with period recognition more closely monitored.
U.S DEPARTMENT OF HEALTH AND HUMAN SERVICES Material Weakness ? Internal controls over compliance ? Reporting Finding 2022-001 ? ALN 93.558 Temporary Assistance for Needy Families (TANF) Criteria ? In accordance with 2 CFR Subpart F 200.508, the auditee must prepare appropriate financial statements, including the supplemental schedule of expenditures of federal awards (SEFA) in accordance with 200.510 of this regulation. The auditee must include the total federal awards expended for the same period covered by the auditee?s financial statements. Condition ? The SEFA prepared by the Organization and submitted for audit did not include the TANF program and the related expenses totaling $891,795. Effect ? The initial major program determination had to be revised once the auditor identified the missing expenditures, which also resulted in the identification of an additional major program for testing. Controls over compliance for reporting required for federal programs and preparation of the SEFA were not sufficient to detect that the program and related expenditures were missing on the 2022 SEFA. The error in preparing the SEFA and not including the TANF program on the schedule could have resulted in a major program not being properly identified and tested as required by the Uniform Guidance. This also resulted in delays in completing the audit. Cause ? The TANF funds were a new source of funding for the Organization and were received from a non federal pass-through entity. When preparing the SEFA, the funds were overlooked and not included on the SEFA submitted for audit. Controls over the preparation and review processes for the SEFA were not designed effectively to detect the missing program and expenditures. Recommendation ? We recommend that the Organization determine the source of funding prior to set up of the project in the general ledger. Similar to how other federal awards are identified in the general ledger, we recommend that all federal awards be labeled in the general ledger by the federal ALN upon initial set up. In addition, a secondary review should be performed at year-end to ensure the completeness of the SEFA and determine that all expenditures related to the federal programs in the general ledger are included in the SEFA prior to submission of the SEFA for audit. View of Responsible Officials ? See Management?s Corrective Action Plan.
Identification of the federal program:Federal Grantor: U.S. Department of Health and Human ServicesAssistance Listing No.: 93.461, COVID-19 HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund (Uninsured Program)Award Period: January 1, 2022 ? March 31, 2022Criteria or specific requirement (including statutory, regulatory or other citation):2 CFR 200.510 requires that 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 in accordance with Section 200.502.? These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States and the ?Internal Control Integrated Framework? issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).?2 CFR 200.508 Schedule of expenditures of Federal awards. ?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.? Condition:The draft Schedule of Expenditures of Federal Awards (the Schedule) prepared by the Corporation was misstated. The expenditures were understated related to the Uninsured Program. The final Schedule was corrected for the differences identified.Cause:Management did not design internal controls to ensure appropriate accumulation of the data necessary to complete the Schedule.Effect or potential effect:Federal expenditures may be inappropriately included or excluded from the Schedule.Questioned costs:None.Context:Total Uninsured Program expenses were $682,332 for the year ended December 31, 2022.Total expenses included on the draft Schedule were $40,733,999 for the year ended December 31, 2022. Total expenses included on the final Schedule were $41,416,331 for the year ended December 31, 2022.Identification as a repeat finding:No.Recommendation:Management should assess its internal controls over the identification of federal expenditures to ensure the Schedule is complete.Views of responsible officials:The Corporation agrees with the finding and has developed a plan to correct the finding. As of August 16, 2023, the Corporation has implemented the following changes, which we believe address future internal control considerations should the program be reinstated. The below controls additionally address the need to properly maintain evidence of controls. The below wording was added to the SEFA Preparation Memo, which is used to prepare the SEFA each year.a. Grants listed on the prior year are reviewed to determine if the grant is still active or if the grant has closed out.i For grants that have closed, the ending dates of the grant are verified, and current year activity is reviewed to ensure that all activity for that grant has been properly accounted for.
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
Finding 2022-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, and for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO