Finding 1055596 (2023-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-07-22
Audit: 315643
Organization: The Warren Center, Inc, (TX)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to allowable costs for Special Education grants.
  • Impacted Requirements: Invoices and allocations must be approved and match the amounts charged to grant activities.
  • Recommended Follow-Up: Management should verify that all amounts charged to grants align with invoices before submitting reimbursement requests.

Finding Text

Finding 2023-002: Allowable costs – significant deficiency in internal controls over compliance and compliance finding. Special Education - Grants for Infants and Families ALN 84.181 Early Childhood Intervention Services Criteria: The Organization’s internal control procedures over compliance specify that all invoices and allocations are approved and agree to the amount allocated to grant activities. Condition: During allowable cost testing for federal and state grants, for 1 of the 25 invoices tested, the base amount used for allocation and charged to the grant did not agree to the invoice. Cause: There was human error when the amount was entered into the accounting software and, ultimately, an oversight due to turnover in personnel. Effect: The Organization's grant expenses were not fully documented in accordance with the internal control over compliance procedures. Questioned Costs: None Recommendation: Management should ensure amounts charged to the grants agree to invoices before the request for reimbursement is submitted. Management’s Response: See corrective action plan

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management Significant Deficiency

Other Findings in this Audit

  • 479153 2023-001
    Material Weakness
  • 479154 2023-002
    Significant Deficiency
  • 479155 2023-003
    Significant Deficiency
  • 1055595 2023-001
    Material Weakness
  • 1055597 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.181 Special Education-Grants for Infants and Families $1.39M
93.498 Provider Relief Fund $223,945
84.027 Special Education_grants to States $218,880
93.558 Temporary Assistance for Needy Families $214,101
93.434 Every Student Succeeds Act/preschool Development Grants $167,362
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $8,937