Finding 384820 (2023-001)

Material Weakness
Requirement
ABM
Questioned Costs
-
Year
2023
Accepted
2024-03-26

AI Summary

  • Core Issue: Management and the Board mistakenly believed there was no Single Audit requirement for FY 2023.
  • Impacted Requirements: The Association must accurately identify Single Audit obligations in funding agreements to ensure compliance.
  • Recommended Follow-Up: Review all contracts and grants to confirm Single Audit requirements and consult officials if there's uncertainty about funding sources.

Finding Text

Condition: Management and the Board of Directors incorrectly assumed the Association did not have a Single Audit requirement for fiscal year ending 2023. There is a control established for management and Board of Directors to review funding agreements, however, the control was ineffective at identifying the Single Audit requirement. Criteria: The Association’s review of funding source agreements should properly identify Single Audit requirements. This is vital to ensure all of its obligations and requirements are completely fulfilled. Cause: There was a procedure in place to review grant and other funding source agreements, however, the Single Audit requirement was not appropriately identified. Effect: It’s reasonably possible that this deficiency could have resulted in non-compliance of the Single Audit requirement as well as the direct and material compliance requirements associated with the federal funding program. Unchecked compliance and internal controls over compliance could have resulted in undetected issues. It is vital to ensure the Associations identifies all of its obligations and requirements and allocates resources necessary to ensure they are completely fulfilled. Recommendation: We recommend that personnel review contract and grant agreements to properly identify Single Audit requirements. We also recommend, if there is any uncertainty in source of funds (Federal v. State), that appropriate Federal and State officials are contacted to resolve the uncertainty.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 384819 2023-001
    Material Weakness
  • 384821 2023-001
    Material Weakness
  • 384822 2023-002
    Material Weakness
  • 384823 2023-002
    Material Weakness
  • 384824 2023-002
    Material Weakness
  • 961261 2023-001
    Material Weakness
  • 961262 2023-001
    Material Weakness
  • 961263 2023-001
    Material Weakness
  • 961264 2023-002
    Material Weakness
  • 961265 2023-002
    Material Weakness
  • 961266 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $250,000