Finding 3444 (2022-001)

Material Weakness Repeat Finding
Requirement
ABFLMN
Questioned Costs
-
Year
2022
Accepted
2023-12-05

AI Summary

  • Core Issue: Misclassification of revenue and expenses, along with duplicated transactions, was found during the FY 22 audit.
  • Impacted Requirements: Compliance with 2 CFR 1.200.302(b) is at risk due to inadequate financial records and lack of reconciliations.
  • Recommended Follow-Up: Implement monthly reviews and reconciliations of general ledger accounts to ensure accuracy in financial reporting.

Finding Text

Financial Management Fiscal year finding initially occurred: 2021 CONDITION: While performing our audit procedures for FY 22, there were numerous instances of revenue and expense transactions being miscoded between federal grant program funds and transactions being duplicated between funds. In addition, reconciliations of grant revenues to grant expenditures were not being performed which could lead to over drawing federal funds. CRITERIA: 2 CFR 1.200.302(b) Financial Management requires that the financial management system of a non-Federal entity must provide records that identify adequately the source and application of funds for federally funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. CAUSE: Reconciliation and review of detailed general ledger account balances were not performed in a timely manner during FY 22EFFECT: Inaccurate and incomplete financial statement reports may be submitted to users of the financial information. RECOMMENDATION: All detailed general ledger account balances should be reviewed and reconciled on a monthly basis to ensure complete and accurate financial information is provided to all users of the financial information.

Categories

Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $1.36M
93.569 Community Services Block Grant $318,327
10.558 Child and Adult Care Food Program $286,644
93.600 Head Start $267,197
14.218 Community Development Block Grants/entitlement Grants $10,864