Finding Text
Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number: SLFRP1610 Award Period: July 1, 2022 through December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs. The Organization should have internal controls designed to ensure compliance with those provisions. Condition: Internal controls and procedures were not consistently followed in relation to allowable costs as the amount included in the reporting for grant expenditures differed from the amount recorded in the general ledger as being paid. Questioned costs: $1,007 Context: In a sample of 50: 1. 1 of the provider payments allocated to the grant was based on an estimated dollar amount that exceeded the amount actually paid to the provider. The decrease in the amount paid occurred as the provider started with them mid-month and the number of students in the classroom was lower than estimated. 2. A December 2023 invoice allocated to the grant was not recorded as accounts payable and an expense in the general ledger. An audit entry of $7,500 was made as a result. Cause: The Organization was in its startup phases and was maintaining current operations with limited staff. The amount paid was not compared to the amount calculated for payment to determine if they matched or if an adjustment was needed to the expenditure report before submission to the grantor. Effect or potential effect: The amounts reimbursed by the Federal Agency may be unallowable and result in a refund to the Federal Agency. Repeat Finding: No Recommendation: We recommend the Organization design controls to ensure the expenses allocated to the grant are based on expenses coded in the general ledger. We also recommend that the expenditure reports are prepared and reviewed by separate individuals. Views of responsible officials: We agreed with the above comment. The Organization will put a formal layer of review after preparation of the expenditure report and before submission to the awarding agency and make sure the approved support is kept on file supporting expenses are based on actual payments made.