Finding 28865 (2022-005)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-06-29

AI Summary

  • Core Issue: Grant expenditures on the SEFA were not reconciled with the general ledger, risking material misstatements.
  • Impacted Requirements: SEFA must directly relate to underlying accounting records to ensure accuracy in financial reporting.
  • Recommended Follow-Up: Timely reconciliation of reimbursement grant revenue accounts with underlying expenditures is essential for accurate reporting.

Finding Text

Criteria: The information in the Schedule of Expenditures of Federal Awards (SEFA) should be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Condition and Context: The grant expenditures on the SEFA were not reconciled to the general ledger accounting system or other records used to prepare the financial statements. Cause: Revenue accounts were created for each reimbursement grant program beginning October 1, 2020. However, grant receivables were not recorded and revenue accounts for each reimbursement grant program were not reconciled to the underlying expenditures in the accounting and other records used to prepare the financial statements and SEFA. Effect or Potential Effect: The SEFA could be materially misstated if grant expenditures reported on the SEFA are not reconciled to the underlying accounting and other records used to prepare the financial statements. Recommendation: Reimbursement grant revenue accounts should be reconciled to the underlying grant expenditures on the grant request and other reports on a timely basis. Responsible Official's Response: Prior to July 1, 2019, Organization staff did not adequately set up or maintain the accounting software being used. During the year new staff added multiple accounts to ensure that the data in the system matched data showing on government reports. Frequent reconciliations and implementation of policies and procedures will allow data to be accurate in the system and match data that has been submitted to the government from worksheets done in the past.

Categories

Reporting Cash Management

Other Findings in this Audit

  • 28862 2022-004
    Material Weakness Repeat
  • 28863 2022-005
    Material Weakness Repeat
  • 28864 2022-004
    Material Weakness Repeat
  • 605304 2022-004
    Material Weakness Repeat
  • 605305 2022-005
    Material Weakness Repeat
  • 605306 2022-004
    Material Weakness Repeat
  • 605307 2022-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
17.264 National Farmworker Jobs Program $947,577
94.002 Retired and Senior Volunteer Program $93,413