Finding 1105856 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-22
Audit: 347411
Organization: Action, Inc. (MA)

AI Summary

  • Core Issue: The Agency misreported costs by including private utility expenses in a federal grant report.
  • Impacted Requirements: This violates 2 CFR 200.303, which mandates effective internal controls for managing federal awards.
  • Recommended Follow-Up: Management should reinforce internal controls to ensure accurate monthly reporting of federally allowable costs.

Finding Text

U.S. Department of Energy 2024-001 – Weatherization Assistance for Low-Income Persons (Weatherization) – Assistance Listing No. 81.042, Passed through the Commonwealth of Massachusetts, Pass-through identifying number CT OCD SCOCD410024330000301, Grant Period – Year Ended June 30, 2025. Condition: Action, Inc. (the Agency) did not follow its internal controls regarding the monthly reporting for the Weatherization grant and as a result, the Agency included private utility grant costs within one of the Agency’s Weatherization monthly reports to the grantor for which the Agency was reimbursed for. Criteria: 2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish and maintain effective internal controls 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. In addition, the Agency can only request federal reimbursement for federally incurred allowable costs. Cause: The Agency did not properly follow its internal controls. Effect: The Agency did not follow its internal controls for reporting a federal reimbursement request for one month and included non-federal charges within the reimbursement request. Context: One out of seven monthly reports sampled. Our sample was not a statistically valid sample. This was not a repeat finding from a prior period. Questioned Costs: None Recommendations: Management should ensure that the Agency’s internal controls in place are properly followed. Management Response: Management agrees with the finding. During the year, the Agency had staff turnover which was one factor of the reporting error. Management will enhance its internal controls to ensure that monthly reporting only reflects federally related activity.

Categories

Allowable Costs / Cost Principles Cash Management Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 529413 2024-001
    Significant Deficiency
  • 529414 2024-001
    Significant Deficiency
  • 529415 2024-001
    Significant Deficiency
  • 1105855 2024-001
    Significant Deficiency
  • 1105857 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $628,869
14.241 Housing Opportunities for Persons with Aids $556,230
93.569 Community Services Block Grant $322,023
93.499 Low Income Household Water Assistance Program $152,478
93.959 Block Grants for Prevention and Treatment of Substance Abuse $129,505
93.568 Low-Income Home Energy Assistance $111,836
93.647 Social Services Research and Demonstration $82,889
14.267 Continuum of Care Program $36,000
14.231 Emergency Solutions Grant Program $35,606
14.239 Home Investment Partnerships Program $33,178
14.218 Community Development Block Grants/entitlement Grants $25,000
81.042 Weatherization Assistance for Low-Income Persons $228