Finding Text
2024-002 Inaccurate Filing of Federal Financial Reports
Federal Department: Department of Justice, Office on Violence Against Women
Assistance Listing #: 16.526
Compliance and Internal Controls Significant Deficiency
Category of Finding – Reporting
Criteria – § 200.302 Financial management of Uniform Guidance requires that Esperanza develop and maintain a financial management system to ensure accurate, current, and complete disclosure of the financial results of each Federal award as required by the grant agreements. Esperanza's grants require quarterly FFR (financial) reports be submitted.
Condition – The September 30, 2023 and December 31, 2023 FFR reports for Award # 2016-TA-AX-K040 reported inaccurate federal expenditures. Total federal expenditures reported were $783,183 and $809,897 for periods ended September 30, 2023 and December 31, 2023, whereas actual expenditures in the financial management system for the periods ended were $756,435 and $760,887, respectively.
Cause – The organization went through turnover of key staff during the fiscal year. In addition, review of the financial reports were performed subsequent to the submission.
Effect – Inaccurate financial reporting may result in Esperanza’s status to be delinquent and not be able to draw down funds on the award or future awards from the awarding agency.
Recommendation – We recommend that management implement a structured and two-step review process where a knowledgeable and experienced individual other than the preparer reviews the report prior to submission.
Management’s Response and Corrective Action – Esperanza has assigned the contract accountant to be responsible for preparing these reports and implemented review processes to ensure these reports are accurate.
Responsible party for corrective action – Vivian Huelgo, President and CEO
Repeat finding – No