Finding Text
2024-003 - Reporting - Significant Deficiency
Federal Program: Assistance Listing #16.812 Second Change Act Reentry Initiative, Passed Through Pennsylvania Commission on Crime and Delinquency, Pass-Through Entity Identifying Number: 36758
Prior Year Finding Number: N/A
Criteria: A system of internal control should be in place and operating to ensure that expenditures associated with each program are reliably captured and included on the appropriate quarterly expenditure report, as required by the grantor agency.
Condition/Context: The Organization identified during the preparation of its second quarter 2024 expenditure report approximately $25,000 in costs incurred during November 2022 that had not previously been included in a submitted expenditure report to PCCD. In order to bring its financial reporting of grant activity current, the Organization included these expenditures in its second quarter 2024 expenditure report. While such costs were incurred during the overall program performance period and were allowable and attributable to the program, such costs were not timely identified and reported on the correct expenditure report.
Questioned Costs: N/A
Cause: The Organization originally misidentified the costs as having been associated with a different funding stream that should have been included within the 4th quarter 2022 expenditures report.
Effect: In accurate interim financial reporting, the Organization reported certain costs incurred during November 2022 within the 2nd quarter 2024 expenditures report.
Recommendation: We recommend that Organization management review and update its identification of expenditures by period to ensure the completeness and accuracy of expenditure reporting to grantors.
Views of Responsible Officials and Planned Corrective Actions: Management understands and is working to strengthen its grant expenditure identification to ensure the completeness of required expenditure reports.