Finding 1229783 (2025-001)

Material Weakness Repeat Finding
Requirement
M
Questioned Costs
-
Year
2025
Accepted
2026-09-15
Audit: 411088
Organization: CASA/Youth Advocates Inc. (PA)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls for monitoring subrecipient expenses under the Coronavirus State and Local Fiscal Recovery Funds.
  • Impacted Requirements: Compliance with 2 CFR Part 200 is not being met, specifically regarding the review of expenses before reimbursement.
  • Recommended Follow-Up: Implement necessary internal controls to ensure compliance and prevent future noncompliance issues.

Finding Text

Federal Agency: U.S. Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: 39399; TL8GNEVJJ1K4 Award Period: January 1, 2025 through December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award require recipients of federal grants to implement internal controls to monitor and review all proof of expenses submitted by subrecipients prior to reimbursing them. Condition: During our testing, we noted that throughout most of 2025 there was a lack of internal controls designed to ensure the subrecipient monitoring requirements are being met as per 2 CFR Part 200. Context: We noted through our testing of subrecipient monitoring that the protocol to review the proof of expenses incurred by subrecipients prior to reimbursing them was not implemented for 2025. Cause: Lack of internal control processes. Effect: Lack of internal controls over this compliance requirement provides an opportunity for noncompliance. Repeat finding: Yes, see prior year finding 2024-001.

Corrective Action Plan

Internal Control over Compliance- Subrecipient Monitoring Recommendation: We recommend all expenses incurred by subrecipients are reviewed and approved prior to reimbursement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Response by management to the finding: We acknowledge that prior to the completion of our January 1, 2024 – December 31, 2024 audit CASA relied on summary level expense reports from subrecipients under the PCCD grant and did not consistently verify underlying invoices. More detail regarding process in place at the time of FY2024 audit can be found in the corrective action plan for that year. Due to the timing of the FY2024 audits completion having been finalized in December 2025 procedural changes to address the concerns were not consistently implemented until the end of FY2025. As a result, the actions put in place in the prior year corrective action plan were not reflected in our FY2025 procedure. Actions taken prior to and since the issuance of the FY2024 audit include engagement of a new contracted accounting firm with a wider breadth of experience and expertise; an internal restructuring of staff to provide increased opportunity for oversight and review of contracted financial services, a new review protocol of invoices requiring verification of supporting documentation, and documentation of management approval of invoices. Also of note, the PCCD grant in question required a lengthy budget modification process, which required additional oversight and review of allowable costs. The term of this funding ends 9/30/2026 and will not be extended or renewed. Name of the contact person responsible for corrective action: Leigh Anne McKelvey, Executive Director Planned completion date for corrective action plan: 9/30/26 If the U.S. Department of the Treasury has questions regarding this plan, please call Leigh Anne McKelvey, Executive Director, at 610-565-2208.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 1229782 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.493 CONGRESSIONAL DIRECTIVES $119,064
16.575 CRIME VICTIM ASSISTANCE $95,928
16.756 COURT APPOINTED SPECIAL ADVOCATES $46,909
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $23,663