Finding 1163319 (2023-004)

Material Weakness Repeat Finding
Requirement
H
Questioned Costs
-
Year
2023
Accepted
2025-12-02
Audit: 372833
Organization: Abilities Network, Inc. (MD)

AI Summary

  • Core Issue: There was a significant deficiency in internal controls over compliance, specifically regarding credit card disbursement approvals.
  • Impacted Requirements: Recipients must maintain effective internal controls as per 2 CFR section 200.303.
  • Recommended Follow-Up: Implement and monitor robust internal controls to ensure proper documentation and approval of credit card transactions.

Finding Text

Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant, Operation of a Child Care ResourceCenter - Baltimore, Harford and Cecil Counties (691) Assistance Listing Number: 93.575 Award Period: July 1, 2022 to June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Condition: Documentation to support approval of credit card general disbursement was not maintained. Context: One out of thirty seven transactions lacked appropriate approval of the a credit card general disbursement. Questioned Costs: None Cause: Evidence of internal controls over approval of credit card transactions were not maintained. Effect: The lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement, monitor and maintain evidence over internal controls. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

Corrective Action Plan

U.S. Department of Health and Human Services Period of Performance Child Care and Development Block Grant – Assistance Listing No. 93.575 Recommendation: We recommend that the Organization design, implement, monitor and maintain evidence over internal controls. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will assign responsibility for maintaining source documentation to a specific individual or team and develop a system for organizing and storing source documentation, such as a centralized electronic database. Monitoring and testing procedures will be implemented to ensure that source documentation is being maintained and is readily accessible. Lastly, there will be regular reviews and updates to the system for organizing and storing source documentation as needed to ensure ongoing effectiveness.

Categories

Allowable Costs / Cost Principles Period of Performance Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1163311 2023-003
    Material Weakness Repeat
  • 1163312 2023-003
    Material Weakness Repeat
  • 1163313 2023-003
    Material Weakness Repeat
  • 1163314 2023-003
    Material Weakness Repeat
  • 1163315 2023-003
    Material Weakness Repeat
  • 1163316 2023-003
    Material Weakness Repeat
  • 1163317 2023-003
    Material Weakness Repeat
  • 1163318 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.019 CORONAVIRUS RELIEF FUND $75,156
93.870 MATERNAL, INFANT AND EARLY CHILDHOOD HOME VISITING GRANT $40,074
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $27,655
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $23,000
93.434 EVERY STUDENT SUCCEEDS ACT/PRESCHOOL DEVELOPMENT GRANTS $13,917