Finding Text
Proper Cut-off of Expenditures . Questioned Costs: None. Context: Monthly draws are not properly reporting expenditures on an accrual basis. Cause: Monthly draws need to be monitored to ensure proper cut-off and recording on the accrual basis in accordance with the Organization’s accounting policies. Effect: Inaccurate general disbursements may be charged to the SEFA in the incorrect year. Repeat Finding: This is a not repeat finding. Recommendation: Policies and procedures over monthly draws should include preparation and review of the draw to ensure completion in accordance with the accrual basis to ensure expenditures are recorded and reported in the proper period. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. Action taken in response to finding: PCAA will implement a formal year-end close communication process for vendors and subrecipients. Fiscal year-end reminders will be distributed by email, with a request that final invoices be submitted before the books are closed. PCAA will also maintain the books open for six weeks after fiscal year-end to help ensure expenditures are recorded in the proper fiscal year. Name(s) of the contact person(s) responsible for corrective action: Alina Birenyte, Controller Planned completion date for corrective action plan: The corrective action plan detailed above is being implemented by March 31, 2027. Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Center for Disease Control and Prevention: Injury Prevention and Control Research and Statement and Community Based Programs. Assistance Listing Number: 93.136 Pass-Through Agencies: N/A Pass-Through Numbers: N/A Award Periods: Various: September 30, 2022 through September 29, 2027 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: The Organization has noted in the summary of significant accounting policies that they report expenditures on the SEFA on the accrual basis of accounting. In testing one month’s draw in our cash management sample, we identified expenditures that were recorded in the wrong period. Condition: In testing a sample of 7 draws, we noted 1 out of the 7 draws included expenditures from January – March 2025 totaling $8,805 which was incorrectly expensed in the year ending March 31, 2026.