Finding Text
REPORTING – VARIOUS Repeat of finding 2023-007 Finding Type: Material Weakness in Internal Controls over Compliance, Material Noncompliance ALN and Program Title: 93.676 – Unaccompanied Alien Children Program Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Liberty Wilderness Crossroads Camp Contract Number: 90ZU0501 Criteria: The program compliance supplement and grant agreements outline the reports required to be submitted and their due dates. Additionally, 2 CFR 200.303(a) of the Uniform Guidance requires non-federal entities to establish and maintain effective internal control over federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The auditor tested 1 quarterly and 1 annual Federal Financial Report (this was not a statistically valid sample) and noted the following: 1. There was no process for reviewing the reports that were prepared prior to submission. 2. The reports were submitted later than the due dates. 3. For all tested reports, the reported amounts did not agree with the Organization’s accounting records, the reported amounts did not agree within the reports, and/or the reported numbers were not cumulative as required by the reporting guidance. Cause: Procedures have not been established for reviewing the program reports, and management was unaware that the amounts reported should be cumulative. Additionally, the expenditures reported appear to be based on cash draws rather than actual program expenditures. Effect: Reports were not submitted timely and were inaccurate. Questioned Costs: None Recommendation: We recommend procedures be established for review of the program reports prior to submission to the grantors and that the review be documented, procedures be established to ensure reports are submitted timely, and a reconciliation of reported amounts to the accounting records be performed. Views of Responsible Officials and Planned Corrective Actions: See management’s response and Corrective Action Plan on page 55.