Finding 1157216 (2024-001)

Material Weakness Repeat Finding
Requirement
CL
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369500
Organization: Npower Inc. (NY)

AI Summary

  • Core Issue: Lack of documented approval for financial and performance information before reimbursement requests, relying on verbal communication instead.
  • Impacted Requirements: Non-compliance with federal regulations regarding cash management and reporting as outlined in the Uniform Guidance.
  • Recommended Follow-Up: Update policies to require formal written documentation for all reviews and approvals, eliminating verbal approvals via video conference.

Finding Text

ALN Numbers: 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds and 17.285 – Registered Apprenticeship Award Year: January 1, 2024 - December 31, 2024 Federal Agencies: United States Department of Treasury and United States Department of Labor Pass Through Entities: Various Criteria: Federal regulations and grant and contract conditions require that financial and performance information should be reviewed by a different person than the preparer, supporting documentation should be maintained. Condition/Context: Evidence of approval of the financial and performance information prior to submission of reimbursement requests and required reporting was not maintained. Approval was made verbally through meetings and not properly documented in writing. Cause: There was no documented requirement for written approval for reporting or reimbursement requests. It was the policy of management to perform these reviews in person or via video conference. Effect: The Organization has not complied with the specific requirements for cash management and reporting compliance requirements as described in the Uniform Guidance. Questioned Costs: None. Recommendation: The Organization should revise policies and procedures to include formal written documentation of review processes and approval should not be given via video conference. Views of Responsible Officials: Management agrees with the recommendation and plans to put in place an appropriate internal control process.

Corrective Action Plan

Corrective Action Planned: The organization has been using the Microsoft Approvals app to capture approvals of expenditure reports and requests for drawdowns, in addition to the frequent weekly review meetings and approvals process to satisfy Uniform Guidance 2 CFR 200.511c and for Single Audit evidence. Name(s) of Contact Person(s) Responsible for Corrective Action: Stefanie Boles, Chief Administrative Officer; Patrick Ma, Vice President for Finance and Business Operations Anticipated Completion Date: This change has already taken place as of September 2025.

Categories

Cash Management Reporting

Other Findings in this Audit

  • 1157210 2024-001
    Material Weakness Repeat
  • 1157211 2024-001
    Material Weakness Repeat
  • 1157212 2024-001
    Material Weakness Repeat
  • 1157213 2024-001
    Material Weakness Repeat
  • 1157214 2024-001
    Material Weakness Repeat
  • 1157215 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
11.620 Science, Technology, Business And/or Education Outreach $355,846
17.278 Wioa Dislocated Worker Formula Grants $345,018
17.268 H-1b Job Training Grants $248,520
97.127 Cybersecurity Education and Training $222,516
17.285 Registered Apprenticeship $136,250
17.258 Wioa Adult Program $3,279
21.027 Coronavirus State and Local Fiscal Recovery Funds $3,252
14.218 Community Development Block Grants/entitlement Grants $1,270