Finding 1216045 (2025-001)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-05-29

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance, specifically regarding the approval of invoices for grant expenses.
  • Impacted Requirements: The lack of documented approvals violates internal control procedures and compliance standards set by Uniform Guidance and Texas Grant Management Standards.
  • Recommended Follow-Up: Management should implement a standard procedure to ensure all invoices are approved and documentation is retained.

Finding Text

Finding 2025-001: Allowable costs and activities – material weakness in internal controls over compliance. 21st Century Community Learning Centers ALN 84.287C State Compensatory Education Funds – Communities In Schools Criteria: CISDR’s internal control procedures over compliance stipulate that all invoices be approved by management. Condition: During nonpayroll cost testing 18 of the 50 samples did not have documented approval of expenses charged to the grant. Cause: CISDR did not have a standard procedure in place to document and retain management’s approval. Effect: CISDR’s allowable cost and activities were not fully documented in accordance with internal control procedures over compliance requirements in accordance with Uniform Guidance and Texas Grant Management Standards. Questioned Costs: None Recommendation: Management should ensure documentation of approval of all invoices are retained. Management’s Response: See corrective action plan.

Corrective Action Plan

Summary of Finding: Documentation evidencing management approval was not available for certain expenditures selected during compliance testing. Management Response The Organization maintained procedures requiring management approval of invoices and expenditures during FY2025; however, documentation evidencing approval was not consistently retained during periods of staffing transition and operational change. Management has since enhanced and centralized invoice approval workflows within Accounting Seed to improve consistency of approval documentation retention. Approval responsibilities have been clarified by department and management level, and supporting approval documentation is now maintained electronically within the accounting workflow system. Management has also reinforced approval and documentation retention expectations with department leadership and accounting personnel and implemented periodic review procedures to improve ongoing compliance with internal policies and grant requirements.

Categories

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

Other Findings in this Audit

  • 1216042 2025-001
    Material Weakness Repeat
  • 1216043 2025-002
    Material Weakness Repeat
  • 1216044 2025-004
    Material Weakness Repeat
  • 1216046 2025-002
    Material Weakness Repeat
  • 1216047 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $252,874
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $116,517
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $112,563
84.425 EDUCATION STABILIZATION FUND $58,199
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $8,557