Finding 1223233 (2025-001)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-07-08
Audit: 406731
Organization: Grid Alternatives (CA)

AI Summary

  • Core Issue: There are gaps in the approval process for payroll charges related to federal awards.
  • Impacted Requirements: Compliance with 2 CFR 200 and Federal Acquisition Regulations regarding internal controls.
  • Recommended Follow-Up: Implement a system to ensure all payroll charges are consistently reviewed and documented for approval.

Finding Text

2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the Federal Acquisition Regulations require federal award recipients/contractors such as GRID to have internal controls over the federal awards that provides reasonable assurance that the recipient is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. The Organization does have a control in place whereby the payroll charges to the federal awards are reviewed and approved by the appropriate individual. However, in our sample of 80 timesheets, we noted 3 instances where the Organization could not provide evidence of this approval.

Corrective Action Plan

Corrective Action Plan: The Organization concurs with this finding and has implemented enhanced internal controls to ensure all timesheets charged to federal awards are properly reviewed and approved in accordance with policy; specifically, The Organization has established a requirement that all timecards must be reviewed and approved no later than the fifth day following each pay date, supported by monitoring procedures to track completion and identify any exceptions, and has also implemented a formal delegation protocol requiring supervisors to designate an alternate qualified approver when they are unavailable to ensure approvals occur timely and consistently. Person responsible for corrective action: Tamara Robinson Crayton - Controller Anticipated Completion Date: Initial implementation is in place by June 2026.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1223230 2025-001
    Material Weakness Repeat
  • 1223231 2025-001
    Material Weakness Repeat
  • 1223232 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
94.006 AMERICORPS STATE AND NATIONAL 94.006 $736,169
66.959 GREENHOUSE GAS REDUCTION FUND: SOLAR FOR ALL $200,451
81.086 CONSERVATION RESEARCH AND DEVELOPMENT $113,455
66.616 ENVIRONMENTAL AND CLIMATE JUSTICE COMMUNITY CHANGE GRANTS PROGRAM $87,142
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $64,345
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $38,104
17.258 WIOA ADULT PROGRAM $24,738
66.615 ENVIRONMENTAL JUSTICE THRIVING COMMUNITIES GRANTMAKING PROGRAM (EJ TCGM) $6,924