Finding 36034 (2022-004)

Material Weakness Repeat Finding
Requirement
CL
Questioned Costs
$1
Year
2022
Accepted
2023-10-01

AI Summary

  • Core Issue: The Organization inaccurately reported amounts in quarterly expenditure reports, failing to comply with cash management and financial reporting requirements.
  • Impacted Requirements: Non-federal entities must pay costs before requesting reimbursement and submit accurate quarterly reports, even with no expenses.
  • Recommended Follow-up: Enhance internal controls and procedures for record retention to ensure accurate financial reporting.

Finding Text

FINDING 2022-004 Federal Program Information: 21st Century Community Learning Centers (Assistance Listing 84.287C) Criteria or Specific Requirement: C. Cash Management ? When non-federal entities are funded under the reimbursement method, the entity must pay for the costs for which reimbursement was requested prior the date of the reimbursement request. R. Reporting ? In accordance with the awarding agency?s annual grantee requirements, expenditure reports are to be submitted on a quarterly basis (even if there are no expenses) and be compliant with the spend-down in the Notice of Funding Opportunity/Request for Proposal. Reports are due on the 20th of the month following the end of the quarter. Condition: Amounts were inaccurately reported in the Organization?s quarterly expenditure reports. Cause: Lack of internal control and administrative oversight. Effect or Potential Effect: The Organization was not in compliance with the cash management and financial reporting requirements of its grant. Questioned Costs: Indeterminable. Context: For 6 of 6 quarterly expenditure reports selected for testing, the amounts reported did not tie to the underlying accounting records. As such, it could not be ascertained if the Organization paid for the costs prior to requesting reimbursement. Identification as a Repeat Finding: This is a repeat finding of Finding 2021-002. Recommendation: We recommend the Organization enhance its procedures and internal controls over record retention to ensure complete and accurate financial reporting. Views of Responsible Officials: The Alliance will enhance its procedures and internal controls over record retention to ensure complete and accurate financial reporting.

Corrective Action Plan

FINDING 2022-004 Name of Responsible Individual For Finding(s): Bryan Soady, Former Alliance Executive Director Name of Responsible Individual For Correction(s): Awisi Bustos, Current Alliance Executive Director Corrective Action: The Alliance will enhance its procedures and internal controls over record retention to ensure complete and accurate financial reporting. Anticipated Completion Date: September 30, 2023

Categories

Questioned Costs Cash Management Internal Control / Segregation of Duties Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 36032 2022-002
    Material Weakness Repeat
  • 36033 2022-003
    Material Weakness
  • 36035 2022-002
    Material Weakness Repeat
  • 36036 2022-003
    Material Weakness
  • 36037 2022-002
    Material Weakness Repeat
  • 36038 2022-003
    Material Weakness
  • 612474 2022-002
    Material Weakness Repeat
  • 612475 2022-003
    Material Weakness
  • 612476 2022-004
    Material Weakness Repeat
  • 612477 2022-002
    Material Weakness Repeat
  • 612478 2022-003
    Material Weakness
  • 612479 2022-002
    Material Weakness Repeat
  • 612480 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.287 Twenty-First Century Community Learning Centers $4.30M
93.558 Temporary Assistance for Needy Families $672,980