Finding 1172905 (2025-004)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-02-09

AI Summary

  • Core Issue: $64,589 in current year expenditures and $72,562 from the prior year were incorrectly excluded from the SEFA.
  • Impacted Requirements: Strong controls are needed for accurate SEFA preparation to prevent errors in financial reporting.
  • Recommended Follow-Up: enCircle should enhance monitoring controls for expenditure reporting and SEFA preparation to avoid future discrepancies.

Finding Text

Unaccompanied Alien Children – AL #93.676, Controls over SEFA (Material Weakness) Condition In our testing of the current year SEFA, we noted $64,589 in expenditures were erroneously excluded. We also noted that $72,562 of expenditures from the prior year were also not previously captured in the prior year SEFA. Criteria Strong controls over SEFA preparation are necessary to ensure that funds are accurately reported. Cause Errors in capturing all expenditures from the general ledger to properly complete the SEFA. Effect As a result of the control concerns, we do believe that a larger error or several smaller issues that total a larger error could occur and not be timely noted and/or corrected by the entity. Recommendation We recommend enCircle work on controls that put in place monitoring over reporting of expenditures and SEFA preparation. View of Responsible Officials and Planned Corrective Action enCircle noted during the audit that federal expenditures were being billed into multiple revenue accounts depending on the nature of the expenditure (internal expense, client reimbursable expense, foster parent payments). These accounts have all been consolidated into one account to ensure internal and external reporting does not exclude billed expenditures.

Corrective Action Plan

Action Taken enCircle noted during the audit that federal expenditures were being billed into multiple revenue accounts depending on the nature of the expenditure (internal expense, client reimbursable expense, foster parent payments). These accounts have all been consolidated into one account to ensure internal and external reporting does not exclude billed expenditures.

Categories

Reporting Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 1172870 2025-001
    Material Weakness Repeat
  • 1172871 2025-002
    Material Weakness Repeat
  • 1172872 2025-003
    Material Weakness Repeat
  • 1172873 2025-004
    Material Weakness Repeat
  • 1172874 2025-001
    Material Weakness Repeat
  • 1172875 2025-002
    Material Weakness Repeat
  • 1172876 2025-003
    Material Weakness Repeat
  • 1172877 2025-004
    Material Weakness Repeat
  • 1172878 2025-001
    Material Weakness Repeat
  • 1172879 2025-002
    Material Weakness Repeat
  • 1172880 2025-003
    Material Weakness Repeat
  • 1172881 2025-004
    Material Weakness Repeat
  • 1172882 2025-001
    Material Weakness Repeat
  • 1172883 2025-002
    Material Weakness Repeat
  • 1172884 2025-003
    Material Weakness Repeat
  • 1172885 2025-004
    Material Weakness Repeat
  • 1172886 2025-001
    Material Weakness Repeat
  • 1172887 2025-002
    Material Weakness Repeat
  • 1172888 2025-003
    Material Weakness Repeat
  • 1172889 2025-004
    Material Weakness Repeat
  • 1172890 2025-001
    Material Weakness Repeat
  • 1172891 2025-002
    Material Weakness Repeat
  • 1172892 2025-003
    Material Weakness Repeat
  • 1172893 2025-004
    Material Weakness Repeat
  • 1172894 2025-001
    Material Weakness Repeat
  • 1172895 2025-002
    Material Weakness Repeat
  • 1172896 2025-003
    Material Weakness Repeat
  • 1172897 2025-004
    Material Weakness Repeat
  • 1172898 2025-001
    Material Weakness Repeat
  • 1172899 2025-002
    Material Weakness Repeat
  • 1172900 2025-003
    Material Weakness Repeat
  • 1172901 2025-004
    Material Weakness Repeat
  • 1172902 2025-001
    Material Weakness Repeat
  • 1172903 2025-002
    Material Weakness Repeat
  • 1172904 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.676 UNACCOMPANIED CHILDREN PROGRAM $1.91M