FAC Explorer

Finding 1208242 (2024-004)

Material Weakness Repeat Finding
Requirement
H
Questioned Costs
-
Year
2024
Accepted
2026-04-21
Audit: 399214
Organization: Wateree Community Actions, Inc. (SC)
Auditor: THE HOBBS GROUP

AI Summary

  • Issue: Full annual DocuSign subscription costs were charged during the grant period, despite the subscription extending beyond this timeframe.
  • Impacted Requirements: This practice violates federal cost principles by not allocating expenses between the periods that benefit from the service.
  • Recommended Follow-up: Review and adjust expense allocations to ensure compliance with federal guidelines and avoid future issues.

Finding Text

Management charged the full annual DocuSign subscription expense during the grant period January 1, 2024 through December 31, 2024; however, the subscription term extended beyond the grant’s period of performance and was not allocated between benefiting periods, resulting in noncompliance with federal cost principles.

Corrective Action Plan

Management will implement procedures to identify and properly allocate prepaid and multi-period expenses across the applicable benefit periods. Prepaid expenses will be recorded and amortized over the service period in accordance with GAAP and federal cost principles.

Categories

Allowable Costs / Cost Principles Period of Performance

Other Findings in this Audit

  • 1208243 2024-005
    Material Weakness Repeat
  • 1208244 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 HEAD START $8.08M
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $6.89M
93.600 Early Head Start $3.04M
93.569 COMMUNITY SERVICES BLOCK GRANT $1.63M
93.568 Emergency 3 $996,614
10.558 CHILD AND ADULT CARE FOOD PROGRAM $849,925
93.568 Emergency 2 $743,866
93.568 Emergency 1 $326,948
93.568 Weatherization $314,039
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $241,930
93.499 LOW INCOME HOUSEHOLD WATER ASSISTANCE PROGRAM $225,000
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $151,201
93.568 Infrastructure 1 $115,071
21.009 VOLUNTEER INCOME TAX ASSISTANCE (VITA) MATCHING GRANT PROGRAM $4,667
93.568 Infrastructure 2 $3,326