Finding 1181664 (2023-008)

Material Weakness Repeat Finding
Requirement
H
Questioned Costs
-
Year
2023
Accepted
2026-03-20

AI Summary

  • Core Issue: One out of seven expenses (14.3%) was recorded in the wrong fiscal year, violating federal guidelines.
  • Impacted Requirements: Compliance with 2 CFR 200.309, which mandates that costs must be charged to the correct period of performance.
  • Recommended Follow-Up: Implement procedures to monitor expenditure dates and ensure accurate fiscal year recording for grant expenses.

Finding Text

Expense Recorded in Incorrect Period of Performance Information on Federal Programs: Assistance Listing Numbers: 93.591 Family Violence Prevention and Services/State Domestic Violence Coalitions. Criteria: 2 CFR 200.309 notes “a non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or passthrough entity made the Federal award that were authorized by the Federal awarding agency or pass-through entity.” Condition: Testing identified one expenditure out of a sample of seven (14.3%) were not properly recorded in the correct fiscal year. We consider this to be an instance of noncompliance in internal controls over compliance with Period of Performance and is not considered a repeated finding. Questioned Costs: $3,300 Effect: As a result, the Organization did not record an expenditure in the appropriate fiscal year. Cause: This is due to lack of controls over expenditure monitoring and miscommunications with employee turnover. Recommendation: Auditors recommend the organization implement procedures to review dates when expenditures are incurred and ensure they are accurately recorded and charged to the appropriate fiscal year for the grant period. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and their response is included with the Corrective Action Plan.

Corrective Action Plan

Summary of Findings Testing identified one expenditure out of seven sampled (14.3%) totaling $3,300 that was not recorded in the proper fiscal year. This was determined to be an instance of noncompliance in internal control over compliance related to Period of Performance requirements. The finding is not considered a repeated finding. Statement of Concurrence or Nonconcurrence MNADV concurs with the finding and recommendation labeled 2023-008. The organization failed to accurately review an expenditure that was billed in the audited fiscal year but was actually a prepay for services in the following fiscal year. The expenditure did appropriately fall within the correct grant award period as the grant spanned both fiscal years. This oversight was due to human error. Corrective Action A. Immediate Corrective Action Taken 1.Management reviewed the transaction in question and verified the correct period of performance. 2.The expenditure was reclassified to the appropriate fiscal year. 3.A review of expenditures recorded near the fiscal year-end for all federal awards was conducted to identify any additional cutoff errors. 4.Supporting documentation for corrections was retained. Completion Date: Completed prior to issuance of audited financial statements. B. Long-Term Corrective Actions The organization will implement enhanced year-end closing procedures that will include review of all invoices for the period of service to ensure that expenditures recorded near the start or end of a fiscal year are aligned with the proper fiscal year. Prepaid service expenditures will be recorded as accruals. Responsible Party: Executive Director and Contractual Bookkeeper Implementation Date: Beginning current fiscal year-end and ongoing.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance

Other Findings in this Audit

  • 1181653 2023-004
    Material Weakness Repeat
  • 1181654 2023-007
    Material Weakness Repeat
  • 1181655 2023-008
    Material Weakness Repeat
  • 1181656 2023-004
    Material Weakness Repeat
  • 1181657 2023-007
    Material Weakness Repeat
  • 1181658 2023-008
    Material Weakness Repeat
  • 1181659 2023-004
    Material Weakness Repeat
  • 1181660 2023-007
    Material Weakness Repeat
  • 1181661 2023-008
    Material Weakness Repeat
  • 1181662 2023-004
    Material Weakness Repeat
  • 1181663 2023-007
    Material Weakness Repeat
  • 1181665 2023-005
    Material Weakness Repeat
  • 1181666 2023-006
    Material Weakness Repeat
  • 1181667 2023-007
    Material Weakness Repeat
  • 1181668 2023-005
    Material Weakness Repeat
  • 1181669 2023-006
    Material Weakness Repeat
  • 1181670 2023-007
    Material Weakness Repeat
  • 1181671 2023-005
    Material Weakness Repeat
  • 1181672 2023-006
    Material Weakness Repeat
  • 1181673 2023-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $610,689
16.575 CRIME VICTIM ASSISTANCE $337,766
16.U01 PERFORMANCE INCENTIVE GRANT FUND-JUSTICE REINVESTMENT FUND-STATEWIDE DOMESTIC VIOLENCE TRAINING $223,510
93.591 FAMILY VIOLENCE PREVENTION AND SERVICES/STATE DOMESTIC VIOLENCE COALITIONS $105,937
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $66,615
16.556 STATE DOMESTIC VIOLENCE AND SEXUAL ASSAULT COALITIONS $58,219
16.U03 Language Line Support for DVSP's $55,391
16.034 CORONAVIRUS EMERGENCY SUPPLEMENTAL FUNDING PROGRAM $34,153
16.U02 AIP Connection Project - Phase II $20,580