Finding 396134 (2021-003)

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

AI Summary

  • Answer: Administrative expenses totaling $400,000 lack proper support.
  • Trend: Inadequate controls are leading to unsupported expenditures.
  • List: Implement stronger tracking controls and ensure all expenses are documented.

Finding Text

2021-003. Condition: Reimburse administrative expenses are unsupported. Criteria: Administrative expenses are to be properly supported. Cause: Proper controls were not in place to track administrative expenditures appropriately. Effect: The cost of the assistance may be disallowed. Context: A total of $400,000 in administrative expenses are unsupported.

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. • Catholic Charities of Yolo-Solano, Inc. are revising and restructuring our chart of accounts and grant coding to more clearly delineate administrative and other overhead costs to ensure each grant is appropriately allocated overhead costs, and that no costs are allocated to any grant more than once. The new structure will be implemented July 1, 2023, the beginning of our fiscal year.

Categories

Questioned Costs

Other Findings in this Audit

  • 396132 2021-001
    Significant Deficiency
  • 396133 2021-002
    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