Finding 1157334 (2024-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369613
Auditor: Brown Plus

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to the allocation of facility use costs.
  • Impacted Requirements: The lack of a review process led to an error in the allocation calculation, resulting in overcharged expenses to the grant.
  • Recommended Follow-up: Management should implement a documented review process for the facility use spreadsheet before submitting grant reimbursement requests.

Finding Text

Finding number 2024-001, significant deficiency in internal controls over compliance – Allowable costs Federal Agency: U.S. Department of Justice Pass-through entity: Pennsylvania Commission on Crime and Delinquency Federal Program: Crime Victim Assistance, ALN 16.575 Condition: There was no review of the spreadsheet used to allocate facility use to the program. Criteria: There should be controls in place to review the facility use allocation calculation. Cause: No review process was in place to oversee this allocation and there was an error in the formula used in the calculation. Effect: The Organization overcharged expenses to the grant by a nominal amount. Questioned Costs: N/A Recommendation: Management should have a process in place to review the facility use spreadsheet as part of their grant reimbursement process. The review of this allocation should be documented. Views of Responsible Officials: Management concurs with this finding. Management will require a review and approval of the facility use spreadsheet prior to grant reimbursement requests being submitted

Corrective Action Plan

Audit Finding: During the 2024 audit, it was noted that there was a miscalculation in the facility use expenses charged to grants. While the error was not material, it highlights a need for improved oversight to prevent future errors. Root Cause: The spreadsheet used to calculate facility use expenses was not reviewed or verified by a second party prior to posting, which led to a calculation error. Corrective Action: Beginning in Quarter 4 of 2025, the facility use expense calculation spreadsheet will be reviewed and verified by a second staff member prior to submission or charging to grants. The reviewer will sign off (physically or electronically) to confirm accuracy of the calculation and grant allocation. Responsible Parties: Allison Hrestak, COO Tina Fornstrom, Business Manager Implementation Date: October 1, 2025 (start of Q4 2025) Ongoing Monitoring: The COO will conduct periodic spot checks (quarterly) to ensure the review and sign-off process is consistently followed. The Business Manager will conduct monthly reviews on the SALBENT AX workbook and facility use workbook for accuracy. Expected Outcome: This added level of review is expected to prevent future calculation errors, ensure accurate cost allocations to grants, and strengthen internal controls related to expense tracking.

Categories

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management Significant Deficiency

Other Findings in this Audit

  • 1157333 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
16.738 Edward Byrne Memorial Justice Assistance Grant Program $457,654
20.616 National Priority Safety Programs $174,246
16.575 Crime Victim Assistance $171,809
16.588 Violence Against Women Formula Grants $86,938