Finding 1216047 (2025-004)

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, leading to duplicate charges on grant transactions.
  • Impacted Requirements: Compliance with Section 200 of the Code of Federal Regulations, which mandates controls to prevent duplicate transactions.
  • Recommended Follow-Up: Management should enhance the review process for reimbursement requests to identify and prevent duplicate charges.

Finding Text

Finding 2025-004: Allowable costs– material weakness in internal controls over compliance and compliance finding. 21st Century Community Learning Centers ALN 84.287C State Compensatory Education Funds – Communities In Schools Criteria: Section 200 of the Code of Federal Regulations requires recipients to have internal controls in place to prevent and detect duplicate transactions from being charged to the grant. Condition: During allowable cost testing for federal and state grants, 2 out of the 25 transactions tested were charged to both grant years 2024 and 2025. Cause: CISDR had significant turnover in management and accounting staff. Effect: Expenses were charged to the grant twice. Questioned Costs: $621.92, representing the total amount the grant was overcharged during both periods. Recommendation: Management should implement a review of the requests for reimbursements, including checks for duplicate charges. Management’s Response: See corrective action plan.

Corrective Action Plan

Finding 2025-004: Allowable Costs – Material Weakness in Internal Controls Over Compliance and Compliance Finding Summary of Finding: Duplicate charges were identified within grant reimbursement submissions across reimbursement periods. Management Response During FY2025, grant reimbursement review procedures were not sufficiently standardized to consistently identify duplicate charges submitted across reimbursement periods. Management is currently evaluating and formalizing enhanced grant reimbursement review workflows designed to improve consistency of review and reduce the risk of duplicate charges within reimbursement submissions. Planned procedures include reconciliation of reimbursement schedules to the general ledger, review of previously submitted reimbursement activity prior to submission of subsequent requests, and clarification of review responsibilities between management and the outsourced accounting team. Management is in the process of documenting these procedures and plans to implement the enhanced review workflow as soon as practicable. Separately, as part of ongoing remediation and compliance monitoring efforts, management has implemented a recurring quarterly Grant Utilization Review process intended to improve oversight of reimbursement activity, grant utilization, and reconciliation procedures across reimbursement periods. The first review meeting is scheduled for June 2026.

Categories

Allowable Costs / Cost Principles Cash Management 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
  • 1216045 2025-001
    Material Weakness Repeat
  • 1216046 2025-002
    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