Finding 1159417 (2024-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: There were adjustments to accrued expenses that increased federal expenditures and grant revenue by about $73,000 for the year ended December 31, 2024.
  • Impacted Requirements: Management must ensure an effective internal control system for accurate government grant reporting and proper financial statement reflection.
  • Recommended Follow-Up: Review findings from 2024-002 for corrective actions and ensure compliance with reporting requirements.

Finding Text

Finding 2024-04 Applicable Federal Program: Coronavirus State and Local Recovery Funds Assistance Listing # 21.027 Contract #: LED-2024 207406 Contract Period: 12/01/23-4/30/26 Criteria:Management is responsible for establishing and maintaining an effective system of internal control over government grant reporting to ensure all costs are reported in the correct period that government grant revenue is properly reflected in the financial statements.Condition: The finding reported as 2024-002 includes adjustments to accrued expense for the year ended December 31, 2024. This increased federal expenditures for the period by approximately $73,000 and a like amount of grant revenue.Cause: See finding 2024-002Questioned Costs: None Recommendation: See finding 2024-002Views of responsible official and planned corrective action: See finding 2024-002

Corrective Action Plan

In October 2024, immediately after the above-referenced fraud was committed, SELF created a new policy with tighter internal controls in regard to ACH payments. The new policy requires multiple staff members to verify any banking information (in multiple ways) before any such payment can be initiated. The new policy was approved shortly thereafter by the organization’s board. SELF also contracted with a digital security company to train all employees about digital threat awareness including fraud and phishing attempts, specifically via email. As part of these new practices, all employees are required to participate in monthly training.

Categories

Reporting Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $760,517
93.569 Community Services Block Grant $627,939
93.558 Temporary Assistance for Needy Families $218,901
93.568 Low-Income Home Energy Assistance $161,717
14.218 Community Development Block Grants/entitlement Grants $20,000
21.026 Homeowner Assistance Fund $7,451
21.023 Emergency Rental Assistance Program $610