Finding 401814 (2023-003)

2023-003 Grant Expenditures (Repeat Prior Year Audit Finding 2022-004; Originally Reported as Finding 2020-005) Criteria: Expenditures used to support grant reimbursement requests should agree with amounts recorded in the general ledger accounting system. Condition and Context: In our testing, we noted that the total expenditures recorded in the general ledger accounting system by grant program did not agree in total to the spreadsheets used to support grant reimbursement requests. Cause: Staff use spreadsheets outside of the general ledger accounting system to track expenditures and make grant reimbursement requests. During the June 30, 2023 fiscal year, staff utilized the accounting system to better track grant revenues and expenditures by grant program. However, the breakdown of expenditures used on these spreadsheets did not always match the breakdown used when the expenditures were posted in the general ledger accounting system. Effect or Potential Effect: Expenditures could be duplicated, or eligible expenditures could be omitted from grant reimbursement requests. Recommendation: The coding of expenditures in the general ledger accounting system should reflect the amounts requested under each grant. Additionally, reconciliations should be performed regularly to ensure expenditures are not duplicated or eligible expenditures are not omitted from grant reimbursement requests. Responsible Official's Response: Processes have been put into place to make sure that variances do not occur. Any questions with allowable costs have been referenced in 2 CFR 200 subpart E used for a common procedure for all expenses. The executive director and office manager will review expenditures prior to the distribution of office expenses from among the funds, which will ensure accuracy before the request is made. This will also eliminate the number of entries which need to be adjusted in the expenses. Steps have been implemented since the finding last year to eliminate variances by the review of the Executive Director and Office Manager of expenditure requests, prior to the funding drawdowns.