Finding 1190886 (2025-007)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-03-27
Audit: 395174
Auditor: RSM US LLP

AI Summary

  • Core Issue: A $179 discrepancy was found between invoice support and charges for a federal program due to a transposition error.
  • Impacted Requirements: Documentation for costs charged to federal awards must meet standards set by Title 2 U.S. Code of Federal Regulations Part 200.
  • Recommended Follow-Up: Review and improve existing policies to ensure all federal program charges are properly documented.

Finding Text

Finding Number 2025-007 Federal Award Agency: United States Department of Homeland Security Program Name and Federal Assistance Listing No.: COVID-19: Disaster Grants- Public Assistance Pass-Through Entity: Pennsylvania Emergency Management Agency Pass-Through Award Numbers: Unknown Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires that the accounting principles of the non-Federal entity provide for adequate documentation to support costs charged to the Federal award. Condition: There was a difference of $179 between the invoice support and the charge allocated to the major federal program selected for testing. Cause: There was a transposition error between the invoice supporting the charge and the charge allocated to the major federal program. Effect or potential effect: All charges made to federal awards are required to be adequately documented. Inadequate documentation could lead to a questioned cost and ultimately a payback to the government. Questioned Cost: $179 Context: In 1 of 60 transactions selected for testing, there was a difference between the invoice support and the charge allocated to the major program of $179. Recommendation: Existing policies and procedures should be reviewed to ensure that all charges to federal programs are adequately documented. Views of responsible officials: Management acknowledges the finding. See corrective action plan.

Corrective Action Plan

Management has acknowledged the finding and has implemented enhanced procedures through frequent reconciliations and stricter review policies to ensure documented costs agree to the underlying invoice support. Name of the contact person responsible for corrective action: Garrett Richardson, VP of Finance; Haley Kotun, Director of Finance Anticipated completion date: January 2026

Categories

Allowable Costs / Cost Principles Subrecipient Monitoring Matching / Level of Effort / Earmarking

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $1.69M
84.268 FEDERAL DIRECT STUDENT LOANS $41,565
84.063 FEDERAL PELL GRANT PROGRAM $9,860