Finding Text
Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Section 200.302 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.
Condition: Management's grant tracking of expenditures for the federal awards was not clearly classified during the year.
Questioned costs: n/a
Context: Management was not able to provide a schedule of government grants for a significant period of time after audit fieldwork started.
Cause: Due to continued staff turnover, sufficient training for preparing grant tracking spreadsheets is still necessary for new staff and the details of the federal awards received during the year were not clearly defined. At the start of audit fieldwork, it was unknown as to what the actual expenditures for each program were for the year.
Effect: Unallowable costs could be charged to federal awards and not be detected and corrected.
Repeat Finding: Yes. Finding 2023-002.
Recommendation: We recommend the Organization provide training to staff responsible for tracking federal and state awards and utilize another member of management to review and approve the grant tracking spreadsheets routinely. Additionally, we recommend reconciliations be performed monthly between the grant spreadsheets and the financial reporting software. A tracking of the federal expenditures needs to be kept and classified to the proper federal and state programs.
Views of Responsible Officials: There is no disagreement with the audit finding.