Finding 1089835 (2023-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-12-06

AI Summary

  • Core Issue: Internal controls were inadequate, allowing the same person to prepare and submit reports, risking inaccuracies.
  • Impacted Requirements: Non-compliance with Section 200.303 of the Uniform Guidance regarding effective internal control over federal awards.
  • Recommended Follow-Up: Implement proper segregation of duties to ensure independent review of reports before submission.

Finding Text

Finding 2023-004 – Internal Control Deficiency Reporting Identification of the federal program: Federal grantor: United States Department of Health and Human Services Assistance listing no.: 93.048 Program name: Special Programs for the Aging, Title IV, and Title II, Discretionary Projects Criteria or specific requirement (including statutory, regulatory, or other citation): Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (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. These internal controls should be in compliance with guidance in ‘Standards for Internal Control in the Federal Government’ issued by the Comptroller General of the United States or the ‘Internal Control Integrated Framework,’ issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Condition: Evidence of internal controls was not in place throughout the audit period to ensure that reports which are submitted are complete and accurate. The individual who prepares the SF-425 report was the same individual who reviewed and submitted the reports. Cause: Controls were not designed effectively throughout the audit period to properly segregate duties whereby someone independent of the preparer is reviewing the reports prior to submission. Effect or potential effect: Reports could reflect inaccurate information. Questioned costs: None. Context: Because there was not appropriate segregation of duties throughout the audit period, we did not test internal controls over reporting. Identification as a repeat finding, if applicable: This is a repeat finding – Finding 2022-003. Recommendation: AdviseWell, Inc. should develop and implement effective internal controls throughout the audit period to properly segregate duties whereby someone independent of the preparer is reviewing the reports prior to submission to ensure reports are complete and accurate. View of responsible officials: Management agrees with the finding. Controls were enhanced in October 2023 whereby the person preparing the reports is independent of the person reviewing the reports.

Categories

Internal Control / Segregation of Duties Reporting Student Financial Aid

Other Findings in this Audit

  • 513391 2023-002
    Material Weakness Repeat
  • 513392 2023-003
    Material Weakness Repeat
  • 513393 2023-004
    Material Weakness Repeat
  • 513394 2023-005
    Material Weakness Repeat
  • 1089833 2023-002
    Material Weakness Repeat
  • 1089834 2023-003
    Material Weakness Repeat
  • 1089836 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $1.83M