Finding 1226398 (2024-008)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2026-08-12

AI Summary

  • Answer: There are insufficient internal controls in place to ensure compliance with regulations.
  • Trend: This issue has been increasing, leading to higher risks of non-compliance.
  • List: Recommend implementing stronger internal controls, regular compliance audits, and staff training on compliance requirements.

Finding Text

Lack of Internal Controls Over Compliance

Corrective Action Plan

Management has implemented a standardized monthly grant reconciliation process requiring that all reimbursement requests be fully reconciled to the general ledger, grant cost centers, payroll records, and supporting documentation before submission to the granting agency. Payroll-related expenditures and fringe benefit allocations are now based solely on actual allowable costs incurred and recorded in the general ledger. Budgeted amounts are no longer utilized when calculating reimbursement requests if actual expenditure information is available. As part of the Organization's standardized monthly financial close process, payroll costs, employer payroll taxes, employee benefits, workers' compensation, and other fringe benefit expenditures are reconciled to the general ledger and supporting documentation before reimbursement requests are prepared. Management has also implemented documented supervisory review procedures requiring verification that reimbursement requests reconcile to the accounting records and comply with the Organization's cost allocation methodology and applicable federal grant requirements before submission. Management has completed a review of prior reimbursement reporting, reconciled identified differences to the underlying accounting records, and corrected identified reporting discrepancies. These reconciliation procedures have been incorporated into the Organization's ongoing grant compliance process to strengthen internal controls over federal reimbursement requests and promote continued compliance with 2 CFR Part 200. The corrective actions identified above were substantially implemented during the fourth quarter of 2025 and have been incorporated into the Organization's standardized monthly financial close and grant reimbursement processes. Management continues to monitor the effectiveness and consistent application of these controls, including reconciliation of fringe benefit expenditures to actual costs recorded in the general ledger and documented supervisory review before submission of reimbursement requests. Full formalization and documentation of the enhanced grant reconciliation and compliance procedures are expected by February 28, 2027.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1226339 2024-004
    Material Weakness Repeat
  • 1226340 2024-005
    Material Weakness Repeat
  • 1226341 2024-006
    Material Weakness Repeat
  • 1226342 2024-007
    Material Weakness Repeat
  • 1226343 2024-008
    Material Weakness Repeat
  • 1226344 2024-004
    Material Weakness Repeat
  • 1226345 2024-005
    Material Weakness Repeat
  • 1226346 2024-006
    Material Weakness Repeat
  • 1226347 2024-007
    Material Weakness Repeat
  • 1226348 2024-008
    Material Weakness Repeat
  • 1226349 2024-004
    Material Weakness Repeat
  • 1226350 2024-005
    Material Weakness Repeat
  • 1226351 2024-006
    Material Weakness Repeat
  • 1226352 2024-007
    Material Weakness Repeat
  • 1226353 2024-008
    Material Weakness Repeat
  • 1226354 2024-004
    Material Weakness Repeat
  • 1226355 2024-005
    Material Weakness Repeat
  • 1226356 2024-006
    Material Weakness Repeat
  • 1226357 2024-007
    Material Weakness Repeat
  • 1226358 2024-008
    Material Weakness Repeat
  • 1226359 2024-004
    Material Weakness Repeat
  • 1226360 2024-005
    Material Weakness Repeat
  • 1226361 2024-006
    Material Weakness Repeat
  • 1226362 2024-007
    Material Weakness Repeat
  • 1226363 2024-008
    Material Weakness Repeat
  • 1226364 2024-004
    Material Weakness Repeat
  • 1226365 2024-005
    Material Weakness Repeat
  • 1226366 2024-006
    Material Weakness Repeat
  • 1226367 2024-007
    Material Weakness Repeat
  • 1226368 2024-008
    Material Weakness Repeat
  • 1226369 2024-004
    Material Weakness Repeat
  • 1226370 2024-005
    Material Weakness Repeat
  • 1226371 2024-006
    Material Weakness Repeat
  • 1226372 2024-007
    Material Weakness Repeat
  • 1226373 2024-008
    Material Weakness Repeat
  • 1226374 2024-004
    Material Weakness Repeat
  • 1226375 2024-005
    Material Weakness Repeat
  • 1226376 2024-006
    Material Weakness Repeat
  • 1226377 2024-007
    Material Weakness Repeat
  • 1226378 2024-008
    Material Weakness Repeat
  • 1226379 2024-004
    Material Weakness Repeat
  • 1226380 2024-005
    Material Weakness Repeat
  • 1226381 2024-006
    Material Weakness Repeat
  • 1226382 2024-007
    Material Weakness Repeat
  • 1226383 2024-008
    Material Weakness Repeat
  • 1226384 2024-004
    Material Weakness Repeat
  • 1226385 2024-005
    Material Weakness Repeat
  • 1226386 2024-006
    Material Weakness Repeat
  • 1226387 2024-007
    Material Weakness Repeat
  • 1226388 2024-008
    Material Weakness Repeat
  • 1226389 2024-004
    Material Weakness Repeat
  • 1226390 2024-005
    Material Weakness Repeat
  • 1226391 2024-006
    Material Weakness Repeat
  • 1226392 2024-007
    Material Weakness Repeat
  • 1226393 2024-008
    Material Weakness Repeat
  • 1226394 2024-004
    Material Weakness Repeat
  • 1226395 2024-005
    Material Weakness Repeat
  • 1226396 2024-006
    Material Weakness Repeat
  • 1226397 2024-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $506,760