Finding 30844 (2022-001)

Criteria ? 2 CFR Section 200.303 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes regulations, and the terms and conditions of federal awards. The Organization is responsible for tracking total federal funds spent by fiscal year and making the determination whether a Single Audit is required. Condition and Context ? Management?s spreadsheet for tracking federal grants subject to Uniform Guidance Single Audit and related expenditures for the fiscal year did not include all grants subject to Single Audit. As a result, management initially determined that the Organization was below the threshold for Single Audit for the year ended March 31, 2022. Audit procedures found additional grants with expenditures during the fiscal year that were subject to Single Audit. These additional grants put the Organization over the Single Audit expenditure threshold of $750,000. Cause ? A lack of internal controls to review the tracking schedule for completeness and insufficient review of grants for the presence of federal funding. Effect ? Had audit procedures not found the additional grants, the Organization would not have met its requirement for a Single Audit for the year ended March 31, 2022. Recommendations ? As agreements are awarded, the Organization should analyze them for the presence of federal funding. In many instances there is a mix and the Organization should review the agreement for clarification of funding allocations. If unclear, the Organization should work with the grant?s administrator at the funder to determine the source of the funds. If not in the agreement, the Organization should also work with the funder to identify the federal CFDA number the federal funds fall under. The Organization should ensure all identified federal grants make it to the tracking spreadsheet. Management should strengthen its review of that tracking document to ensure it includes all federal grants with expenditures subject to Single Audit each fiscal year. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding. AYCC has taken steps to strengthen fiscal oversight and tracking of federal grants subject to meet Uniform Guidance. These steps include hiring a new Chief Financial Officer with significant grant management and audit experience. Additionally, cross training staff to increase skills and knowledge surrounding the receipt, use, and tracking of federal grants. These steps combined with updated internal controls, improved systems and collaboration between the finance department and the grant department will remedy this finding and prevent further findings in the future.