Finding Text
REPORTING - VARIOUS Finding Type: Material Weakness in Internal Controls over Compliance, Material Noncompliance, Insufficient Evidence ALN/CSFA and Program Title: 93.676 – Unaccompanied Alien Children Program Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Liberty Wilderness Crossroads Camp Contract Number: 90ZU0362 (direct), 90ZU0501 Criteria: The program compliance supplement and grant agreements outline the reports required to be submitted and their due dates. Additionally, 2 CFR 200.303(a) of the Uniform Guidance requires non-federal entities to establish and maintain effective internal control over federal awards that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The Organization no longer had access to the federal Payment Management System and did not maintain copies of the Federal Financial Reports or Performance Progress Reports. Copies of the Federal Financial Reports were able to be obtained from the grantor for testing; however, copies of the Performance Progress Reports could not be obtained. The auditor could not obtain sufficient, appropriate audit evidence for the Performance Progress Reports and was unable to form a conclusion on the Organization’s compliance with direct and material requirements for a portion of the reporting requirement. The auditor tested 2 quarterly and 1 final Federal Financial Report and noted the following: 1. There was no process for reviewing the reports that were prepared prior to submission. 2. The final report was submitted later than the due date. 3. For all tested reports, the reported amounts did not agree with the Organization’s accounting records, the reported amounts did not agree within the reports, and/or the reported numbers were not cumulative as required by the reporting guidance. This was not a statistically valid sample. Cause: Procedures have not been established for reviewing the program reports, and management was unaware that the amounts reported should be cumulative. Additionally, the expenditures reported appear to be based on cash draws rather than actual program expenditures. Effect: Reports were not submitted timely and were inaccurate. Questioned Costs: None Recommendation: We recommend procedures be established for review of the program reports prior to submission to the grantors and that the review be documented, procedures be established to ensure reports are submitted timely, and a reconciliation of reported amounts to the accounting records be performed. Views of Responsible Officials and Planned Corrective Actions: See management’s response and Corrective Action Plan on page 57.