FAC Explorer

Finding 1114479 (2024-003)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-03-27
Audit: 349065
Organization: Community Action Program Region Vii, Inc. (ND)
Auditor: Brady Martz & Associates PC

AI Summary

  • Core Issue: There is a significant deficiency in the segregation of duties, as reimbursement requests are not reviewed by someone other than the preparer.
  • Impacted Requirements: Internal controls must ensure proper disbursement of federal awards in line with grant requirements.
  • Recommended Follow-Up: The Region should enhance internal controls and consider cost-effective procedures, with ongoing oversight by knowledgeable individuals to mitigate risks.

Finding Text

2024-003: Segregation of Duties – Significant Deficiency AL # 93.568 – LIHEAP – Low Income Home Energy Assistance Program C: Cash Management Criteria The Region is required to maintain internal controls at a level where underlying support for federal award reimbursement requests can developed and a determination can be made that the federal awards are getting disbursed properly in accordance with grant requirements. Condition There is a lack of internal control around the review and approval of reimbursement requests by someone other than the preparer. Cause The Region is subject to size and budget constraints limiting the number of personnel within the financial department. Questioned Costs $0 Effect There is an increased risk of material misstatement to the organization’s financial statements. Recommendation We recommend the Region review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. Views of Responsible Officials and Planned Corrective Actions We agree with this finding. We will improve monitoring and implement new procedures to properly segregate accounting functions as much as possible for the small size of the Region. Indication of Repeat Finding This is not a repeat finding from the prior year.

Categories

Internal Control / Segregation of Duties Cash Management Significant Deficiency Subrecipient Monitoring

Other Findings in this Audit

  • 538037 2024-003
    Significant Deficiency
  • 538038 2024-003
    Significant Deficiency
  • 538039 2024-003
    Significant Deficiency
  • 538040 2024-003
    Significant Deficiency
  • 1114480 2024-003
    Significant Deficiency
  • 1114481 2024-003
    Significant Deficiency
  • 1114482 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $335,365
64.033 Va Supportive Services for Veteran Families Program $209,759
81.042 Weatherization Assistance for Low-Income Persons $45,636
14.241 Housing Opportunities for Persons with Aids $42,331
93.569 Community Services Block Grant $11,908
93.917 Hiv Care Formula Grants $6,411
14.218 Community Development Block Grants/entitlement Grants $6,068
32.011 Affordable Connectivity Outreach Grant Program $1,255