Finding 1101986 (2023-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2025-03-04

AI Summary

  • Core Issue: Required second approvals for cost reimbursements over set limits were often missing, leading to potential inaccuracies in financial reporting.
  • Impacted Requirements: The Organization's approval procedures for cost reimbursements and journal entries were not consistently followed, risking compliance with accounting standards.
  • Recommended Follow-Up: Implement a review process to ensure all required approvals are obtained and maintain thorough documentation for all transactions.

Finding Text

2023-002 – Allowable costs/activities allowed - Review and approval of cost reimbursements and journal entriesCondition and Context: Accounting tasks such as review and approval of cost reimbursements and journal entries play a key role in proving the accuracy of accounting data and information included in interim SEFA. During the audit, we noted various incidences in which required second approvals for cost reimbursements exceeding specified thresholds were not completed in accordance with the Organization’s approval procedures. We also noted various incidences in which correcting journal entries were posted to reimbursement cost amounts reported on the schedule of federal awards. In addition, we noted missing documentation for an item selected for testing.

Categories

Allowable Costs / Cost Principles Cash Management Reporting

Other Findings in this Audit

  • 525544 2023-002
    Significant Deficiency
  • 525545 2023-002
    Significant Deficiency
  • 1101987 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $363,300
84.377 School Improvement Grants $199,540
84.215 Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects $137,242
94.006 Americorps State and National 94.006 $125,859
93.235 Title V State Sexual Risk Avoidance Education (title V State Srae) Program $87,388
21.027 Coronavirus State and Local Fiscal Recovery Funds $46,285
14.218 Community Development Block Grants/entitlement Grants $25,000
93.297 Teenage Pregnancy Prevention Program $20,000
97.024 Emergency Food and Shelter National Board Program $8,750