Finding Text
Significant Deficiency U.S. DEPARTMENT OF THE INTERIOR ALN #: 15.658 Federal Award Identification #: F24AC00584 Condition: ABC did not accurately report federal expenditures incurred on the 9/30/25 or 12/30/25 SF-425 reports. Criteria: 2 CFR 200.328 Questioned Costs: $0 Context: 2 out of 4 quarterly SF-425 reports within FY25 had inaccurate expenditures reported. ABC inadvertently did not include 3 months of expenditures and the previous fiscal year-end accruals on the 09/30/25 SF-425 report. While the 12/30/25 report included the 3 months of expenditures missing from the 9/30/25 report, it did not include the previous fiscal year-end accruals. These resulted in total expenditures on both the 9/30/25 and 12/30/25 SF-425 reports to be under-reported. Cause: Oversight by management. Effect: Inaccurate information reported to the grantor regarding grant activity. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that ABC implements a review process to compare expenditures reported on the SF-425 to a cumulative general ledger detail from the beginning of the grant through the report period prior to the quarterly report being submitted. We also recommend that ABC implements a check on the expenditures reported on the first SF-425 report submitted during the fiscal year to ensure that all accruals from the previous fiscal year are included. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.