Finding 1160445 (2024-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-10-15
Audit: 370864
Organization: Madonna Center, Inc. (TX)
Auditor: Jms CPA PLLC

AI Summary

  • Core Issue: The Center submitted reimbursement requests based on budgeted wages instead of actual time worked by employees.
  • Impacted Requirements: This violates compliance with 2 CFR §200.430(g)(vii), which mandates using actual time worked for reimbursement requests.
  • Recommended Follow-Up: Report the overstatement to the City of San Antonio and establish procedures to ensure future documentation reflects actual time worked.

Finding Text

Type of Finding: Significant Internal Control over Compliance Compliance Requirement: Allowable Costs Criteria: The program requires the Center to request actual time worked by qualified employees when requesting reimbursement of funds from the City of San Antonio, as per 2 CFR §200.430(g)(vii). Condition: It was noted the supporting documentation submitted for reimbursement was calculated using budgeted percentages of wages for qualified employees instead of actual time worked. Cause: No procedures are in place to review the supporting documentation submitted for reimbursement was for actual time worked by qualified employees. Effect: Not using actual costs incurred when requesting reimbursement under this program can lead to reimbursement overstatements and non-compliance with the program. Recommendation: We recommend the Center report the reimbursement overstatement to City of San Antonio and correct the error. We recommend the Center develop procedures to review that supporting documentation submitted for reimbursement was for actual time worked. This review should be performed by personnel familiar with the program requirements. Views of Responsible Officials: Management agrees with the finding and will work with the City of San Antonio to correct the issue, and develop review procedures to respond to the finding.

Corrective Action Plan

Management agrees with the finding and will work with the City of San Antonio to correct the issue, and develop review procedures to respond to the finding.

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1160444 2024-004
    Material Weakness Repeat
  • 1160446 2024-002
    Material Weakness Repeat
  • 1160447 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $270,088
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $195,109
10.558 Child and Adult Care Food Program $169,803
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $99,359
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $90,000
10.565 Commodity Supplemental Food Program $39,446
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $13,394