Finding Text
2023-001 Schedule of Expenditures of Federal Awards (Material Weakness)
U.S. Department of Treasury 21.027 Coronavirus State and Local Fiscal Recovery Funds
U.S. Department of Treasury 93.959 Block Grants for Prevention and Treatment of Substance Abuse
Criteria: CFR Part 200.508 Audit Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual federal awards by federal agency, including the total federal awards expended, name of pass-through entity, assistance listing number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare
the financial statements.
Condition: The Schedule of Expenditures of Federal Awards was prepared by the auditor based on federal award contracts provided by auditee. Auditee was not aware of federal sources of funding.
Cause: Management has limited knowledge on requirements of a Single Audit. Management relied on auditors to prepare the Schedule of Expenditures of Federal Awards.
Effect: Potential understatement or overstatement of expenditures could exist in the Schedule of Expenditures of Federal Awards and not be detected or corrected.
Questioned Costs: None noted.
Recommendation: Establish procedures to prepare the annual Schedule of Expenditures of Federal Awards and reconcile amounts reported to the Organization's general ledger. The Organization should provide appropriate training to staff who work with government funding.
Views of Responsible Officials and Planned Corrective Actions: The Organization will prepare a current Scheduel of Expenditures of Federal Awards, listing awards by federal agency, total federal awards expended, name of pass-through entity, assistance listing number, and total amount provided to subrecipients. Monique Johnson, Executive Director of Allen County Drug & Alcohol Consortium, is responsible for this corrective action. The anticipated completion date is April 15, 2025.