Finding Text
Finding No. 2025-004: Federal Program Expenditure Tracking Federal Program Affected: Protection and Advocacy for Individuals with Mental Illness, ALN 93.318 and Developmental Disabilities Basic Support and Advocacy Grants, ALN 93.630 Compliance Requirement: Cash Management and Reporting Questioned Costs: None after adjustment Condition and Cause: The Organization does not have a current internal control process to reconcile reimbursement-based grant revenue to incurred expenses. Federal grant revenue reimbursed exceeded expenses incurred and allocated to the grant funding, also creating variances in the federal program reporting requirements. A refundable advance totaling $139,872 was recorded as of September 30, 2025, which included the following federal grant programs: • Developmental Disabilities Basic Support and Advocacy Grants, ALN 93.630 - $69,253 • Protection and Advocacy for Individuals with Mental Illness, ALN 93.138 - $36,760 • Non-major federal programs - $33,859 Criteria and Effect: Current internal controls did not identify the errors in drawdown requests for reimbursement-based federal programs during the year. This resulted in material noncompliance. Repeat Finding from Prior Year: N/A Recommendation: The Organization should use actual expenditure reports from the general ledger to prepare reimbursement requests and federal reporting submissions. The general ledger reports should be maintained to support reimbursement requests and report submissions. Management reviewing the reimbursement requests should ensure such expenditure reports match or exceed the reimbursement requests and agree to reports submitted for the federal programs. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.