Finding 1229277 (2025-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-09-10

AI Summary

  • Core Issue: The coalition failed to document the review and approval of expenses allocated to federal programs.
  • Impacted Requirements: This lack of documentation violates 2 CFR Part 200, Section 200.514(c) and Subpart E regarding cost principles.
  • Recommended Follow-up: Management should implement a system to ensure proper documentation and approval of cost allocations to comply with federal requirements.

Finding Text

MANAGEMENT IS RESPONSIBLE FOR ESTABLISHING AND MAINTAINING AN EFFECTIVE SYSTEM OF INTERNAL CONTROLS TO ENSURE COMPLIANCE WITH 2 CFR PART 200, SECTION 200.514(C) AND SUBPART E, COST PRINCIPLES DOCUMENTATION OF INTERNAL CONTROLS SURROUNDING ALLOCATION OF COSTS, IS A KEY COMPONENT OF EFFECTIVE INTERNAL CONTROL OVER COMPLIANCE. THE COALITION COULD NOT PROVIDE DOCUMENTATION OF REVIEW AND APPROVAL OF EXPENSES ALLOCATED THROUGH THE JOURNAL ENTRY PROCESS TO THE FEDERAL PROGRAMS. SUPPORTING DOCUMENTATION COULD NOT BE PROVIDED THAT SHOWED PAYROLL REGISTER BASE COSTS TIED TO THE AMOUNTS ALLOCATED TO THE VARIOUS GRANT PROGRAMS.

Corrective Action Plan

THE COALITION WILL FORMALIZE AND RETAIN A DOCUMENTED ALLOCATION CONTROL PROCESS FOR EXPENSES CHARGED TO FEDERAL PROGRAMS. ON A MONTHLY BASIS, FINANCE WILL RECONCILE PAYROLL REPORTS FROM GUSTO TO THE GENERAL LEDGER TO ENSURE PAYROLL ENTRIES POSTED TO THE GL AGREE TO THE PAYROLL REGISTER FOR THE APPLICABLE PAY PERIOD. THESE RECONCILED PAYROLL ENTRIES WILL SERVE AS THE BASIS FOR ALL PAYROLL ALLOCATIONS. FOR PAYROLL ALLOCATIONS, THE PAYROLL REGISTER WILL SERVE AS THE SOURCE DOCUMENT AND WILL BE RECONCILED TO THE ALLOCATION WORKSHEET AND THE CORRESPONDING JOURNAL ENTRY POSTED TO THE GENERAL LEDGER. THE RECONCILIATION WILL IDENTIFY THE PAYROLL PERIOD, EMPLOYEE, SOURCE PAYROLL AMOUNT, ALLOCATION METHODOLOGY, FUNDING SOURCE OR PROJECT, AND RESULTING JOURNAL ENTRY. A PREPARER AND AN INDEPENDENT REVIEWER WILL DOCUMENT COMPLETION AND APPROVAL, AND THE SUPPORTING DOCUMENTATION WILL BE RETAINED WITH THE JOURNAL ENTRY TO ENSURE ALLOCATED AMOUNTS CAN BE TRACED BACK TO THE ORIGINATING PAYROLL RECORDS. IN ADDITION, FINANCE WILL RECONCILE ON A MONTHLY BASIS, THE PAYROLL REPORTS FROM GUSTO TO THE GENERAL LEDGER, ENSURING THAT THE PAYROLL ENTRIES POSTED TO THE GL TIE DIRECTLY BACK TO THE PR REGISTER FOR THAT TIME PERIOD. THESE PAYROLL ENTRIES (FROM GUSTO) ARE THEN WHAT IS USED TO CREATE THE ALLOCATIONS. ANY UNEXPLAINED VARIANCE WILL BE RESOLVED BEFORE THE JOURNAL ENTRY IS FINALIZED

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1229271 2025-003
    Material Weakness Repeat
  • 1229272 2025-004
    Material Weakness Repeat
  • 1229273 2025-005
    Material Weakness Repeat
  • 1229274 2025-003
    Material Weakness Repeat
  • 1229275 2025-004
    Material Weakness Repeat
  • 1229276 2025-005
    Material Weakness Repeat
  • 1229278 2025-004
    Material Weakness Repeat
  • 1229279 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
16.524 LEGAL ASSISTANCE FOR VICTIMS $214,167
16.589 RURAL DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ASSISTANCE PROGRAM $211,216
16.736 TRANSITIONAL HOUSING ASSISTANCE FOR VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, STALKING, OR SEXUAL ASSAULT $205,821
16.526 OVW TECHNICAL ASSISTANCE INITIATIVE $145,926
16.888 CONSOLIDATED AND TECHNICAL ASSISTANCE GRANT PROGRAM TO ADDRESS CHILDREN AND YOUTH EXPERIENCING DOMESTIC AND SEXUAL VIOLENCE AND ENGAGE MEN AND BOYS AS ALLIES $68,245
16.556 STATE DOMESTIC VIOLENCE AND SEXUAL ASSAULT COALITIONS $1,574
93.591 FAMILY VIOLENCE PREVENTION AND SERVICES/STATE DOMESTIC VIOLENCE COALITIONS $8