Finding 1097389 (2022-001)

Significant Deficiency
Requirement
C
Questioned Costs
$1
Year
2022
Accepted
2025-01-31

AI Summary

  • Core Issue: Funds were drawn down too early, resulting in $27,300 classified as deferred revenue.
  • Impacted Requirements: Timely expenditure of funds is crucial; miscalculations led to over-drawing against grant conditions.
  • Recommended Follow-Up: Implement controls to ensure reimbursement requests are accurate before drawing funds from grants.

Finding Text

1) Finding 2022-001: Assistance Listing #47.076 – Research and Development Cluster National Science Foundation ADVANCE Research Coordination Network (ARC), ACCESS+ Condition: Funds Not Expended Timely (Cash Management) During the period, the Organization drew down funds in excess of allowable costs in the amount of $25,107 under ARC programming, and $2,193 under ACCESS+ programming. Amounts are reflected as deferred revenue on the Statement of Financial Position. Criteria: This is deemed a matter of untimeliness between time of disbursement by grantor, and expenditure by WEPAN. Cause: The Organization over-drew funds due to miscalculations on monthly reimbursement invoices. These amounts are considered deferred (conditional) until eligible expenses are incurred under grant programming. The Organization did not incur eligible expenses to meet this condition until subsequent to year-end (90 days + after funds were disbursed by grantor). Effect: The result is a total of $27,300 of deferred revenue reflected on the statement of financial position as of June 30, 2022. Recommendations: That the Organization implement controls to ensure that reimbursement requests are complete/accurate prior to drawing from grant. Comments: The above issue was noted by WEPAN management in July 2022, and the subsequent reimbursement request (draw down) was decreased to account for these funds. The Corrective Action Plan was certified by Board and Management effective January 29, 2025, and additional controls were implemented at that time.

Categories

Questioned Costs Cash Management

Other Findings in this Audit

  • 520946 2022-001
    Significant Deficiency
  • 520947 2022-001
    Significant Deficiency
  • 1097388 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
47.076 Stem Education (formerly Education and Human Resources) $12,430