Finding 1215013 (2024-003)

Material Weakness Repeat Finding
Requirement
ABC
Questioned Costs
-
Year
2024
Accepted
2026-05-19

AI Summary

  • Answer: Management is bypassing internal controls, leading to incorrect expense allocations for federal grants.
  • Trend: This issue highlights a pattern of management override that compromises financial statement integrity.
  • List: Follow up by reviewing internal control processes and ensuring compliance with financial reporting standards.

Finding Text

Finding: Management override of internal controls. Criteria: Management is responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition and Context: As discussed in Section IIA, management override resulted in the improper allocation of expenses, to federal grants. See above for detail.

Corrective Action Plan

Cayuga Centers has changed key leadership positions and contracted in the near-term for Chief Financial Officer and Controller services. The new leadership team is working transparently to resolve internal control issues asserted in the audit report. To prevent future instances of management override, Cayuga Centers has implemented standardized procedures to ensure grant expenditures are properly classified in our financial system. Each transaction are supported by detailed documentation, including invoices, receipts, and grant-specific identifiers. Individuals responsible for grant oversight will undergo mandatory training to deepen their understanding of grant requirements, allowable costs, and reporting obligations. Additionally, Cayuga Centers is working to ensure open communication between staff and the Board. Under new leadership, the agency continues to enforce its Non-Retaliation Policy (Whistleblower). The Acting President’s office is establishing quarterly “Grant Compliance Forums” for employees to raise concerns related to grant administration.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1214969 2024-003
    Material Weakness Repeat
  • 1214970 2024-004
    Material Weakness Repeat
  • 1214971 2024-005
    Material Weakness Repeat
  • 1214972 2024-006
    Material Weakness Repeat
  • 1214973 2024-007
    Material Weakness Repeat
  • 1214974 2024-008
    Material Weakness Repeat
  • 1214975 2024-009
    Material Weakness Repeat
  • 1214976 2024-010
    Material Weakness Repeat
  • 1214977 2024-011
    Material Weakness Repeat
  • 1214978 2024-012
    Material Weakness Repeat
  • 1214979 2024-013
    Material Weakness Repeat
  • 1214980 2024-003
    Material Weakness Repeat
  • 1214981 2024-004
    Material Weakness Repeat
  • 1214982 2024-005
    Material Weakness Repeat
  • 1214983 2024-006
    Material Weakness Repeat
  • 1214984 2024-007
    Material Weakness Repeat
  • 1214985 2024-008
    Material Weakness Repeat
  • 1214986 2024-009
    Material Weakness Repeat
  • 1214987 2024-010
    Material Weakness Repeat
  • 1214988 2024-011
    Material Weakness Repeat
  • 1214989 2024-012
    Material Weakness Repeat
  • 1214990 2024-013
    Material Weakness Repeat
  • 1214991 2024-003
    Material Weakness Repeat
  • 1214992 2024-004
    Material Weakness Repeat
  • 1214993 2024-005
    Material Weakness Repeat
  • 1214994 2024-006
    Material Weakness Repeat
  • 1214995 2024-007
    Material Weakness Repeat
  • 1214996 2024-008
    Material Weakness Repeat
  • 1214997 2024-009
    Material Weakness Repeat
  • 1214998 2024-010
    Material Weakness Repeat
  • 1214999 2024-011
    Material Weakness Repeat
  • 1215000 2024-012
    Material Weakness Repeat
  • 1215001 2024-013
    Material Weakness Repeat
  • 1215002 2024-003
    Material Weakness Repeat
  • 1215003 2024-004
    Material Weakness Repeat
  • 1215004 2024-005
    Material Weakness Repeat
  • 1215005 2024-006
    Material Weakness Repeat
  • 1215006 2024-007
    Material Weakness Repeat
  • 1215007 2024-008
    Material Weakness Repeat
  • 1215008 2024-009
    Material Weakness Repeat
  • 1215009 2024-010
    Material Weakness Repeat
  • 1215010 2024-011
    Material Weakness Repeat
  • 1215011 2024-012
    Material Weakness Repeat
  • 1215012 2024-013
    Material Weakness Repeat
  • 1215014 2024-004
    Material Weakness Repeat
  • 1215015 2024-005
    Material Weakness Repeat
  • 1215016 2024-006
    Material Weakness Repeat
  • 1215017 2024-007
    Material Weakness Repeat
  • 1215018 2024-008
    Material Weakness Repeat
  • 1215019 2024-009
    Material Weakness Repeat
  • 1215020 2024-010
    Material Weakness Repeat
  • 1215021 2024-011
    Material Weakness Repeat
  • 1215022 2024-012
    Material Weakness Repeat
  • 1215023 2024-013
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.676 UNACCOMPANIED ALIEN CHILDREN PROGRAM $5.28M
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $260,463