Finding 1152437 (2024-002)

Allowable Activities Type of Finding - Significant deficiency in internal control over compliance Program: Coronavirus Relief Fund Assistance Listing Number: 21.019 Federal Agency: U.S. Department of Treasury Criteria - In accordance with 2 CFR 200.303 subrecipients must establish, document, and maintain effective internal control over federal awards that provides reasonable assurance that the subrecipient is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition - During compliance testing, it was identified that one expenditure in the sample selection was not allowable under the grant agreement. Cause - The expenditure had been reviewed, approved, and manually coded to the appropriate program, however the expenditure was entered into the accounting system under the wrong program. There was no comparison of the coding within the accounting system to the approved coding on the related support. Effect - Grant funds were allocated to an unallowed activity. Questioned Costs - $257. Context - Out of a sample of 21 expenditures totaling $266,209, one expenditure totaling $257 was determined to be an unallowed activity under the Coronavirus Relief Fund and related grant agreement. Identification as a repeat findings - This is not a repeat finding. Recommendation - We recommend management implement a periodic review of grant expenditures entered into the accounting system to ensure coding is consistent with approved programs. Views of responsible official - Management concurs with the finding. The Organization is working with its outsourced accounting firm to make the necessary changes or updates in processes and controls. See the corrective action plan.