Finding 3721 (2023-002)

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Requirement
L
Questioned Costs
-
Year
2023
Accepted
2023-12-08

AI Summary

  • Answer: UAMPS missed including year-end accruals, leading to an understatement of $7.9 million in federal expenditures.
  • Trend: This oversight indicates a potential pattern of inaccuracies in financial reporting.
  • List: Follow up by reviewing reporting processes and ensuring year-end accruals are consistently included in future reports.

Finding Text

UAMPS did not include the year-end accrual of expenditures in the amount of cumulative federal expenditures reported in its fourth quarter SF-425 Federal Financial Report, resulting in and understatement of approximately $7.9 million in cumulative federal expenditures under this program.

Corrective Action Plan

CFPP will implement the following processes to improve the accuracy in the reporting process. Management: * submitted a revised SF-425 Federal Financial Report through Fed Connect on July 13, 2023, updating Line 10f Federal share of unliquidated obligations to include the approximately $7.9 million adjustment. Scott Fox, CFO, reviewed the revised SF-425 which reconciled to the general ledger and included the year-end accrual. A copy of the revised SF-425 is available upon request. * will develop a written policy and procedure to address the preparation, reconciliation, review and approval process of the SF-425 Federal Financial Report. * will provide training to all personnel responsible for the preparation of federal financial reports to ensure that the expenditures reported in the Federal Financial Report include all accruals for expenditures and that the amount of the expenditures reported are reconciled to the expenditures included in the general ledger. * will implement a new control in which the reconciliation of the expenditures reported in the Federal Financial Report to the general ledger is reviewed by the chief financial officer.

Categories

Reporting

Other Findings in this Audit

  • 3720 2023-001
    Significant Deficiency
  • 580162 2023-001
    Significant Deficiency
  • 580163 2023-002
    -

Programs in Audit

ALN Program Name Expenditures
81.121 Nuclear Energy Research, Development and Demonstration $61.56M