Finding Text
Significant Deficiency in Internal Control over Compliance Condition: During the year ended September 30, 2023, a transaction for an unallowable cost was reported in the Organization's accounting records for a Federal program. Criteria: The non-Federal entity, per 2 CFR 200.303(a), "Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award." Cause: The Organization's internal control over compliance with Uniform Guidance did not prevent nor detect and correct an unallowable transaction relating to a Federal award. Effect: An unallowable cost was reported under the Federal program. Upon identification from the auditor, reasonable action was taken to replace the unallowable expenditure from the underlying accounting records for the Federal program. Recommendation: We recommend that the Organization adhere to internal control requirements prescribed under Uniform Guidance, specifically, 2 CFR 200.303. Other Issues: See the following pages for the Corrective Action Plan and the Summary Schedule of Prior Audit Findings.