Finding 1205909 (2025-002)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-04-06
Audit: 397719
Organization: Midland Area Agency on Aging (NE)
Auditor: AMGL PC

AI Summary

  • Core Issue: There is a material weakness in internal controls over expense allocation for major federal programs, leading to incorrect expense tracking.
  • Impacted Requirements: Management must establish adequate internal controls to ensure expenses are allocated correctly by program, as per Uniform Guidance.
  • Recommended Follow-Up: Management should implement robust internal control processes to ensure proper tracking and allocation of federal expenditures.

Finding Text

2025-002 – Material Weakness in Internal Control Over Major Federal Programs Program Information: Federal Agency: U.S. Department of Health and Human Services (passed through Nebraska Department of Health and Human Services) Federal Program Title: Special Programs for the Aging Cluster (AL #93.044 Title IIIB-Grants for Supportive Services and Senior Centers, AL #93.044 COVID-19-Title IIIB-Grants for Supportive Services and Senior Centers AL #93.045 Title III C-1, C-2-Nutrition Services, AL #93.053 Nutrition Services Incentive Program) Grant Award Period: July 1, 2024 through June 30, 2025 Condition: Adequate controls were not in place to ensure the Agency properly tracked expense allocation by program. As a result, expenses have been allocated incorrectly to programs. Criteria: Management is responsible for establishing adequate internal controls to ensure expenses are allocated correctly by program. Cause: The Agency does not have adequate internal controls over proper expense allocation by program. Effect: Because of the lack of proper expense allocation by program, expenses have been allocated incorrectly to programs for three of the forty transactions sampled. Recommendation: We recommend management implement adequate internal controls to ensure allowable expenses are allocated correctly to programs. Views of Responsible Officials and Planned Corrective Actions: The Agency is committed to properly tracking and allocating Federal expenditures. The Agency will create adequate internal control processes to ensure expenses are allocated correctly and in accordance with the requirements of the Uniform Guidance.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: The Agency is committed to properly tracking and allocating Federal expenditures. The Agency will create adequate internal control processes to ensure expenses are allocated correctly and in accordance with the requirements of the Uniform Guidance.

Categories

Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1205910 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $606,835
93.778 MEDICAL ASSISTANCE PROGRAM $589,402
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $573,446
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $95,131
93.052 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE III, PART E $51,223
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $50,743
93.048 SPECIAL PROGRAMS FOR THE AGING, TITLE IV, AND TITLE II, DISCRETIONARY PROJECTS $18,131
93.043 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART D, DISEASE PREVENTION AND HEALTH PROMOTION SERVICES $16,983
93.042 SPECIAL PROGRAMS FOR THE AGING, TITLE VII, CHAPTER 2, LONG TERM CARE OMBUDSMAN SERVICES FOR OLDER INDIVIDUALS $16,286