Finding 10393 (2023-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-01-29
Audit: 14054
Organization: Alpha One (ME)
Auditor: One River CPAS

AI Summary

  • Core Issue: All required Federal Financial Reports were filed late and inaccurately, leading to a material weakness in internal controls over compliance.
  • Impacted Requirements: Reports for grants 2101MEILCL-00 and 2001MEILC3-00 were submitted 30 to 120 days late, with significant inaccuracies in reported expenditures and cash on hand.
  • Recommended Follow-Up: Management should enhance tracking systems for report deadlines and provide training for staff on SF-425 reporting to prevent future issues.

Finding Text

2023-004 Reporting for U.S. DHHS 94.432 ACL Centers for Independent Living (Material Weakness in Internal Controls over Compliance and Noncompliance) Criteria: Centers for Independent Living reporting standards require the filing of annual Federal Financial Report (SF-425) under grant 2101MEILCL-00 for year ended September 29, 2022 by January 28, 2023, annual Federal Financial Report (SF-425) under grant 2001MEILC3-00 for year ended September 30, 2022 by October 30, 2022, and final Federal Financial Report (SF- 425) under grant 2001MEILC3-00 for year ended September 30, 2022 by December 29, 2022. In addition, reporting standards require that these reports be accurately completed Condition and Context: Audit procedures noted that all three of these reports were filed late. In addition, the 2001MEILC3-00 grant reports were completed inaccurately as they showed all $931,640 of the grant funds as fully expended with no cash on hand, when there was $393,081 of cash on hand, $376,286 of unliquidated obligations, and total expenditures and obligations were only $800,354. Cause: There is limited staffing in the finance department, there is a lack of understanding the instructions for the SF-425 Report, and lack of understanding of allowable costs and appropriate period of performance for the 2001MEILC3-00 grant. Effect: The reports were filed 30 days late, 120 days late, and 60 days late. In addition, the awarding agency was not fully informed of the activity on these grants. Recommendation: Management should strengthen their controls for the tracking of required report filings and their due dates. It should implement additional controls to ensure all are filed on time. The controls should account for the possible loss of key personnel responsible for filing and have a process to mitigate this risk. In addition, management should consider training for staff tasked with completing, reviewing, and filing these reports. Views of Responsible Officials and Planned Corrective Actions: Management will add a process to ensure all report deadlines are tracked in calendars for individuals responsible, with multiple reminders regarding deadlines. In addition, management will consider sending key reporting staff to training on the Federal Financial Report (SF-425).

Corrective Action Plan

Management will seek approval from the funding Agency for the questioned costs and return funds if costs are not approved.

Categories

Reporting

Other Findings in this Audit

  • 10391 2023-002
    Material Weakness
  • 10392 2023-003
    Material Weakness
  • 10394 2023-002
    Material Weakness
  • 10395 2023-003
    Material Weakness
  • 10396 2023-004
    Material Weakness
  • 10397 2023-002
    Material Weakness
  • 10398 2023-003
    Material Weakness
  • 10399 2023-004
    Material Weakness
  • 586833 2023-002
    Material Weakness
  • 586834 2023-003
    Material Weakness
  • 586835 2023-004
    Material Weakness
  • 586836 2023-002
    Material Weakness
  • 586837 2023-003
    Material Weakness
  • 586838 2023-004
    Material Weakness
  • 586839 2023-002
    Material Weakness
  • 586840 2023-003
    Material Weakness
  • 586841 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.432 Acl Centers for Independent Living $422,902
93.369 Acl Independent Living State Grants $136,091
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $30,493
93.667 Social Services Block Grant $22,137
10.500 Cooperative Extension Service $1,390