Finding 396133 (2021-002)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2021
Accepted
2024-05-07

AI Summary

  • Issue: Uncashed and voided checks were not properly removed from the accounting system, leading to discrepancies.
  • Requirements Impacted: Funds must be accurately distributed to eligible participants to avoid potential disallowance of assistance costs.
  • Recommended Follow-Up: Implement stronger controls for voiding checks to ensure accurate accounting and reconciliation between systems.

Finding Text

2021-002. Condition: Uncashed and undistributed checks voided from accounting records but remained as outstanding checks in the system that the checks were distributed from causing a difference in the accounting records and payment distributed. Criteria: Funds distributed to eligible participants. Cause: Proper controls were not in place in regards to voiding uncashed and undistributed checks from the accounting system. Effect: The cost of the assistance may be disallowed. Context: A reconciliation between the grant system and the accounting system specifically identified 58 grants totaling $193,731, and 6 grants totaling $23,700 were voided and reissued in the next fiscal year. 45 grants totaling $152,336 were voided and not reissued, 6 grants totaling $16,695 were checks returned from landlords, 1 grant totaling $1,000 was a duplicate entry.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: Catholic Charities of Yolo-Solano, Inc. concurs that our internal control system, in some instances, did not fully connect our program documentation of eligibility criteria and necessary documentation to our accounting department’s documentation. Further, we concur that our external bookkeeper did not have proper review controls in place, nor were our systems properly designed to identify this lack of internal controls over expenditures. Catholic Charities of Yolo-Solano, Inc. have already initiated several corrective actions. • Within Catholic Charities of Yolo-Solano, Inc.’s payables system, BILL, we have implemented a new review and approval system that includes dual review and approval, as well as requiring comprehensive backup being attached to each expenditure. BILL is monitored monthly for outstanding payments and action taken for any stale checks.

Categories

Questioned Costs

Other Findings in this Audit

  • 396132 2021-001
    Significant Deficiency
  • 396134 2021-003
    Material Weakness
  • 972574 2021-001
    Significant Deficiency
  • 972575 2021-002
    Material Weakness
  • 972576 2021-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $4.44M
21.023 Emergency Rental Assistance Program $2.95M
97.024 Emergency Food and Shelter National Board Program $110,000
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $67,319
14.218 Community Development Block Grants/entitlement Grants $17,721
97.088 Disaster Assistance Projects $3,274