Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
2023-002 - Internal Controls Over Compliance and Compliance with Reporting - Preparation of the Schedule of Expenditures of Federal Awards Information on the Major Federal Program - Federal Agency: Department of Interior Program Name: National Park Service Second Century Endowment Assistance Listing Number: 15.U01 Award Number: H.R. 4680/P.L. 114-289 Award Period: October 1, 2022 to September 30, 2023 Criteria - The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “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 2 CFR Section 200.502 Basis for determining Federal awards expended.” The Schedule must provide total Federal awards expended for each individual Federal program. Condition – During the testing of the schedule of expenditures of federal awards (SEFA) for the National Park Service Second Century Endowment for the year-end September 30, 2023, we identified transactions totaling $1,848,493 which were improperly included in the SEFA. These expenditures were not incurred during the fiscal year and should not have been included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate reporting of expenditures to the SEFA. Effect or Potential Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Questioned Costs - None. Context - We reviewed the SEFA and found the exception as noted in the condition. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, the Foundation cannot provide reasonable assurance that the SEFA is fairly presented. See management’s response for further details. Views of Responsible Officials - Management agrees with this finding and recommendation. The Foundation’s management agrees with the finding and recommendation. The planned corrective actions are presented in the Foundation’s management’s corrective action plan attached as Appendix C.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated) Criteria – 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 – The following errors were noted and corrected as a result of auditing procedures on the SEFA: • WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared. • TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds. • Head Start expenditures were overstated by $70,718 as they included in-kind. Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs – None Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated) Criteria – 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 – The following errors were noted and corrected as a result of auditing procedures on the SEFA: • WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared. • TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds. • Head Start expenditures were overstated by $70,718 as they included in-kind. Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs – None Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated) Criteria – 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 – The following errors were noted and corrected as a result of auditing procedures on the SEFA: • WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared. • TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds. • Head Start expenditures were overstated by $70,718 as they included in-kind. Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs – None Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated) Criteria – 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 – The following errors were noted and corrected as a result of auditing procedures on the SEFA: • WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared. • TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds. • Head Start expenditures were overstated by $70,718 as they included in-kind. Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs – None Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated) Criteria – 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 – The following errors were noted and corrected as a result of auditing procedures on the SEFA: • WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared. • TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds. • Head Start expenditures were overstated by $70,718 as they included in-kind. Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs – None Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated) Criteria – 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 – The following errors were noted and corrected as a result of auditing procedures on the SEFA: • WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared. • TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds. • Head Start expenditures were overstated by $70,718 as they included in-kind. Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs – None Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated) Criteria – 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 – The following errors were noted and corrected as a result of auditing procedures on the SEFA: • WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared. • TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds. • Head Start expenditures were overstated by $70,718 as they included in-kind. Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs – None Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
Finding Number: 2023-009 Prior Year Finding Number: N/A Compliance Requirement: Reporting Program: Government Department/Agency: U.S. Department of Labor Unemployment Insurance ALN: 17.225 Award #: UI-37216-22-55-A-11 Award Year: 10/01/2021 – 12/31/2024 Department of Employment Services (DOES) Criteria - The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. The Uniform Guidance in 2 CFR Section 200.510(b), Schedule of Expenditures of Federal awards, states 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 as determined in accordance with 2 CFR section 200.502, Basis for determining Federal Awards expended. Condition – During our review of grant carryover analysis in relation to the fiscal year 2023 audit, we noted that DOES recorded $3.3 million of federal administrative expenditures in the current year SEFA in excess of the overall grant award amount for Unemployment Insurance program Award #UI-37216-22-55-A-11. BDO noted that the amount is related to the year-end closing entry reconciling DIFS R100 vs. R51 and should have been reversed in fiscal year 2023. The SEFA was adjusted to reflect the correct amount of expenditures incurred for the program. Questioned Costs – Not determinable. Context – This is a condition identified per review of the actual vs. budgeted expenditure for the Unemployment Insurance grant. Effect – DOES is not in compliance with the stated provisions. Failure to properly review and support expenditures can result in noncompliance with laws and regulations along with loss of funding. Cause – DOES did not adhere to internal control procedures to reasonably ensure that the SEFA be fairly presented. Recommendation – We recommend that DOES adhere to internal control procedures to reasonably ensure that expenditures do not exceed budget or grant award amounts. Related Noncompliance – Noncompliance. Views of Responsible Officials and Planned Corrective Actions – DOES concurs with this finding. The introduction of the new financial system resulted in the creation of several clearing accounts, necessitating ongoing monitoring and adjustments. One such account is the PNG Clearing Account. The specific transaction in question arose from a general ledger adjustment made during the fiscal year 2023 year-end close to reconcile outstanding balances within the PNG clearing account. This adjustment occurred subsequent to the closure of the subledger, prompting corrections at the source and resulting in discrepancies between subledger and general ledger balances. Management has taken prompt action to address this issue by rectifying discrepancies in the SEFA. Additionally, as part of a agency-wide remediation, we have implemented enhanced controls to facilitate timely reconciliation of subledgers with the general ledger, thus mitigating the risk of future discrepancies. It is important to highlight that this incident is an isolated occurrence within the context of the grant program, stemming from the transition to a new financial system, process changes, and the introduction of subledgers. Importantly, this discrepancy pertains solely to the initial SEFA amount based on general ledger reporting and does not impact federal reporting to the grantor, which is based on subledger data. Furthermore, it does not indicate overspending of federal resources. The District’s corrective action is described in the Management’s Corrective Action Plan included as Appendix B of the attached Management’s Section.
Finding Number: 2023-009 Prior Year Finding Number: N/A Compliance Requirement: Reporting Program: Government Department/Agency: U.S. Department of Labor Unemployment Insurance ALN: 17.225 Award #: UI-37216-22-55-A-11 Award Year: 10/01/2021 – 12/31/2024 Department of Employment Services (DOES) Criteria - The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. The Uniform Guidance in 2 CFR Section 200.510(b), Schedule of Expenditures of Federal awards, states 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 as determined in accordance with 2 CFR section 200.502, Basis for determining Federal Awards expended. Condition – During our review of grant carryover analysis in relation to the fiscal year 2023 audit, we noted that DOES recorded $3.3 million of federal administrative expenditures in the current year SEFA in excess of the overall grant award amount for Unemployment Insurance program Award #UI-37216-22-55-A-11. BDO noted that the amount is related to the year-end closing entry reconciling DIFS R100 vs. R51 and should have been reversed in fiscal year 2023. The SEFA was adjusted to reflect the correct amount of expenditures incurred for the program. Questioned Costs – Not determinable. Context – This is a condition identified per review of the actual vs. budgeted expenditure for the Unemployment Insurance grant. Effect – DOES is not in compliance with the stated provisions. Failure to properly review and support expenditures can result in noncompliance with laws and regulations along with loss of funding. Cause – DOES did not adhere to internal control procedures to reasonably ensure that the SEFA be fairly presented. Recommendation – We recommend that DOES adhere to internal control procedures to reasonably ensure that expenditures do not exceed budget or grant award amounts. Related Noncompliance – Noncompliance. Views of Responsible Officials and Planned Corrective Actions – DOES concurs with this finding. The introduction of the new financial system resulted in the creation of several clearing accounts, necessitating ongoing monitoring and adjustments. One such account is the PNG Clearing Account. The specific transaction in question arose from a general ledger adjustment made during the fiscal year 2023 year-end close to reconcile outstanding balances within the PNG clearing account. This adjustment occurred subsequent to the closure of the subledger, prompting corrections at the source and resulting in discrepancies between subledger and general ledger balances. Management has taken prompt action to address this issue by rectifying discrepancies in the SEFA. Additionally, as part of a agency-wide remediation, we have implemented enhanced controls to facilitate timely reconciliation of subledgers with the general ledger, thus mitigating the risk of future discrepancies. It is important to highlight that this incident is an isolated occurrence within the context of the grant program, stemming from the transition to a new financial system, process changes, and the introduction of subledgers. Importantly, this discrepancy pertains solely to the initial SEFA amount based on general ledger reporting and does not impact federal reporting to the grantor, which is based on subledger data. Furthermore, it does not indicate overspending of federal resources. The District’s corrective action is described in the Management’s Corrective Action Plan included as Appendix B of the attached Management’s Section.
Finding Number: 2023-009 Prior Year Finding Number: N/A Compliance Requirement: Reporting Program: Government Department/Agency: U.S. Department of Labor Unemployment Insurance ALN: 17.225 Award #: UI-37216-22-55-A-11 Award Year: 10/01/2021 – 12/31/2024 Department of Employment Services (DOES) Criteria - The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. The Uniform Guidance in 2 CFR Section 200.510(b), Schedule of Expenditures of Federal awards, states 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 as determined in accordance with 2 CFR section 200.502, Basis for determining Federal Awards expended. Condition – During our review of grant carryover analysis in relation to the fiscal year 2023 audit, we noted that DOES recorded $3.3 million of federal administrative expenditures in the current year SEFA in excess of the overall grant award amount for Unemployment Insurance program Award #UI-37216-22-55-A-11. BDO noted that the amount is related to the year-end closing entry reconciling DIFS R100 vs. R51 and should have been reversed in fiscal year 2023. The SEFA was adjusted to reflect the correct amount of expenditures incurred for the program. Questioned Costs – Not determinable. Context – This is a condition identified per review of the actual vs. budgeted expenditure for the Unemployment Insurance grant. Effect – DOES is not in compliance with the stated provisions. Failure to properly review and support expenditures can result in noncompliance with laws and regulations along with loss of funding. Cause – DOES did not adhere to internal control procedures to reasonably ensure that the SEFA be fairly presented. Recommendation – We recommend that DOES adhere to internal control procedures to reasonably ensure that expenditures do not exceed budget or grant award amounts. Related Noncompliance – Noncompliance. Views of Responsible Officials and Planned Corrective Actions – DOES concurs with this finding. The introduction of the new financial system resulted in the creation of several clearing accounts, necessitating ongoing monitoring and adjustments. One such account is the PNG Clearing Account. The specific transaction in question arose from a general ledger adjustment made during the fiscal year 2023 year-end close to reconcile outstanding balances within the PNG clearing account. This adjustment occurred subsequent to the closure of the subledger, prompting corrections at the source and resulting in discrepancies between subledger and general ledger balances. Management has taken prompt action to address this issue by rectifying discrepancies in the SEFA. Additionally, as part of a agency-wide remediation, we have implemented enhanced controls to facilitate timely reconciliation of subledgers with the general ledger, thus mitigating the risk of future discrepancies. It is important to highlight that this incident is an isolated occurrence within the context of the grant program, stemming from the transition to a new financial system, process changes, and the introduction of subledgers. Importantly, this discrepancy pertains solely to the initial SEFA amount based on general ledger reporting and does not impact federal reporting to the grantor, which is based on subledger data. Furthermore, it does not indicate overspending of federal resources. The District’s corrective action is described in the Management’s Corrective Action Plan included as Appendix B of the attached Management’s Section.
Finding Number: 2023-035 Prior Year Finding Number: N/A Compliance Requirement: Reporting Program: Government Department/Agency: U.S. Department of Health and Human Services Opioid STR ALN: 93.788 Award #: Various Award Year: 09/30/2020 – 09/29/2024 Department of Behavioral Health (DBH) Criteria - The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Federal Awardee Performance and Integrity Information System (FAPIIS) Reporting Compliance: In accordance with the regulatory requirements provided at 45 CFR 75.113 and Appendix XII to 45 CFR Part 75, recipients that have currently active Federal grants, cooperative agreements, and procurement contracts with cumulative total value greater than $10,000,000 must report and maintain information in the System for Award Management (SAM) about civil, criminal, and administrative proceedings in connection with the award or performance of a Federal award that reached final disposition within the most recent five-year period or affirm that there is no new information to report. The recipient must also make semiannual disclosures regarding such proceedings. Proceedings information will be made publicly available in the designated integrity and performance system (currently the FAPIIS). Federal Funding Accountability and Transparency Act (FFATA) Reporting Compliance: The FFATA (Pub. L. No. 109-282, as amended by Section 6202 of Public Law 110-252, hereafter referred as the “Transparency Act” that are codified in 2 CFR Part 170) requires prime recipients of federal awards who make first-tier subawards to report the subaward on the Federal Funding Accountability and Transparency Subaward Reporting System (FSRS) website maintained by the federal Office of Management and Budget. Under the requirements of 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more on the FSRS website. Prime recipients must report by the end of the month following the month in which the obligation is made. It is management’s responsibility to design and implement internal controls to reasonably ensure compliance with laws and regulations and to ensure management’s objectives are achieved. Federal Financial Report (FFR) Controls over Reporting Compliance: In addition, 2 CFR 200.333 requires that financial records, supporting documents, statistical records, and all other non-federal entity records pertinent to a federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the federal awarding agency or pass-through entity in the case of a subrecipient. Performance Progress Report (PPR) Underlying Data: The audit objective for the Reporting compliance requirement stated in the 2 CFR Part 200, appendix XI Compliance Supplement is as follows: Determine whether required reports for Federal awards include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Schedule of Expenditures of Federal Awards (SEFA) Reporting Compliance: Requirements, Cost Principles, and Audit Requirements, section 200.510(b) states the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 200.502. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. Condition – During our testing of the reporting compliance requirement, we noted the following: • FAPIIS Reporting Compliance: During our testing of FAPIIS reporting for fiscal year ended September 30, 2023, it was noted that the program’s reporting regarding civil, criminal, and administrative proceedings in connection with the award or performance of a Federal award that reached final disposition within the most recent five-year period or affirmation that there was no new information to report was not submitted by the DBH program management. • FFATA Reporting Compliance: During our testing of FFATA reporting, it was noted that reports were not submitted by the DBH program management. DBH program management was not aware of FFATA reporting requirement and did not report subawards within the FSRS website during the award year. None of the ten subawards selected for testing were reported to FSRS. Total subawards tested were $3,559,912, and $0 was reported as required by FFATA requirements. • FFR Controls over Reporting Compliance: DBH’s control over compliance for financial reporting is as follows: “All reports are reviewed by the Accounting Officer or Agency Fiscal Officer prior to submission to the Federal government. DBH Program and Fiscal Services staff review programmatic and financial reports.” We noted DBH did not have documentation of the control over compliance, as well as the review and approval of the Financial Reporting Report (FFR or SF-425). • PPR Reporting Compliance: We found DBH did not have documentation for the information, and the source of the information, it used in its Opioid program’s Performance Progress Report. Information as reported on the reports is unsupported as management did not retain the underlying data. • SEFA Reporting Compliance: During our testing for the SEFA, we noted that DBH incorrectly reported the value of subrecipient expenditures included within the subrecipient expenditure column. For the year ended September 30, 2023, DBH incurred $12,800,130 in subrecipient expenditures for this program and incorrectly reported that there were no subrecipient expenditures on the draft SEFA. The error was subsequently identified and corrected as a result of the audit process. While the subrecipient expenditure column was not accurate, the total expenditure column was accurately reported. Questioned Costs – None. Context – This is a condition identified per review of DBH’s compliance with specified reporting requirements using a statistically valid sample. Effect – Without proper internal controls and policies and procedures in place to ensure that correct amounts were reported and were properly reviewed, the Opioid STR program: • FAPIIS Reporting Compliance: DBH management did not report the necessary FAPIIS information for Opioid STR in accordance with Federal requirements. • FFATA Reporting Compliance: DBH management did not report the necessary FFATA report for Opioid STR first-tier subawards over $30,000 to the FFATA Subaward Reporting System in accordance with FFATA requirements. • FFR Controls over Reporting Compliance: There is an increased risk of errors occurring and going undetected, or errors being present in reports if no review and approval occurred. • PPR Reporting Compliance: DBH cannot be assured that it reported complete and accurate information to enable the Substance Abuse and Mental Health Services Administration (SAMHSA), an operating division of the Department of Health and Human Services (HHS), to assess the outcomes of the State’s use of Opioid program funding. • SEFA Reporting Compliance: The effect of the condition found is that the SEFA was not accurately prepared. Cause – Management did not have proper internal controls and policies and procedures in place to ensure that the amounts on the FAPIIS, FFATA, FFR, PPR and SEFA were properly reported, and the reports were properly reviewed and approved. Recommendation – We recommend the following: • FAPIIS Reporting Compliance: We recommend DBH to evaluate its reporting control procedures and update them as necessary to ensure they promote compliance with the Federal regulations. These procedures should include a supervisory review of the report information before it is submitted. Further, we recommend that DBH collect, and report complete and accurate information regarding FAPIIS. • FFATA Reporting Compliance: We recommend DBH to evaluate its Transparency Act reporting control procedures and update them as necessary to ensure they promote compliance with the Federal regulations. These procedures should include a supervisory review of the report information before it is submitted on the FSRS website. Further, we recommend DBH collect and report on the FSRS website complete and accurate information regarding subawards made for all programs subject to the Transparency Act. • FFR Controls over Reporting Compliance: We recommend DBH to design and implement procedures to ensure sufficient documentation is maintained that supports the review and approval of the FFR. • PPR Reporting Compliance: We recommend DBH to develop formal, written procedures to identify the sources of information necessary and steps needed to compile accurate and complete information for the Opioid program performance reports; and retain in a central location all documentation that it used to support information included in each performance report it submits to the federal government. • SEFA Reporting Compliance: We recommend DBH to ensure that agency personnel receive proper training on subrecipient versus vendor determination; as well as review its existing policies and procedures for preparing the Schedule of Expenditures of Federal Awards to ensure that it is complete and accurate. Related Noncompliance – Material noncompliance. Views of Responsible Officials and Planned Corrective Actions – DBH agrees with these findings and plans to address reporting requirements to ensure that the FAPIIS, FFATA, FFR, PPR and SEFA are completed accurately and on the required schedule. The District’s corrective action is described in the Management’s Corrective Action Plan included as Appendix B of the attached Management’s Section.
Section III – Federal Award Findings and Questioned Costs 2023-001 Federal Award Omitted from Schedule of Expenditures of Federal Awards Grantor: Department of Health and Human Services Award Name: Medical Assistance Program Award Year: FY2020, FY2021, FY2022 Assistance Listing Number: 93.778 Condition During the FY 2023 Uniform Guidance audit, Management identified funds from this program that were not appropriately reported for the fiscal years ended September 30, 2022, 2021, and 2020 in the amounts of $136,828, $18,921, and $71,915, respectively. Criteria 2 CFR 200.510 Financial statements require auditees to prepare a Schedule of Expenditures of Federal Awards (the “Schedule”) for the period covered by the auditee’s financial statements, which must include in the total Federal Awards expensed as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records and other federal guidance. Cause The cause of the finding was due to insufficient review of the Schedule. Effect A Schedule that is not complete and accurate could impact the scoping of an entity’s major programs and result in incomplete information being provided to the federal government. There was not an impact on our major program determinations in the prior years. Questioned Cost There are no questioned costs associated with this finding. Recommendation Management should enhance the controls in place to review and verify the completeness and accuracy of the Schedule. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
f Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: 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 NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. 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: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: 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 NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. 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: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: 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 NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. 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: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: 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 NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. 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: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: 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 NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. 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: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: 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 NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. 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: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: 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 NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. 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: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: 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 NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. 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: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: 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 NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. 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: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: 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 NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. 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: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: 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 NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. 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: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) Criteria: 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 NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. 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: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.