Finding 403698 (2023-002)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-06-28
Audit: 310705
Organization: 2nd Chance, Inc. (AL)

AI Summary

  • Core Issue: Funds were improperly used for disallowed activities, specifically salaries for non-eligible roles under the grant agreement.
  • Impacted Requirements: Grant recipients must only spend funds on activities explicitly allowed by the grant agreement to avoid repayment and potential cancellation.
  • Recommended Follow-Up: The Board should review and improve processes to ensure compliance with grant spending requirements.

Finding Text

2023-02 - Disallowed Activities Criteria: Recipients of grant monies may only expend those funds on allowed activities as set forth by the grant agreement. Condition: During subrecipient monitoring, the Alabama Coalition Against Rape reported on salaries and wages related to disallowed activities being included in draw requests for grant number FVP ARP SA 2022-FV-SA-293. Context/Cause: Per the subrecipient monitoring performed by the Alabama Coalition Against Rape, staff wages relating to activities other than sexual assault support were included in draw requests for grant number FVP ARP SA 2022-FV-SA- 293. These activities are disallowed under the grant agreement. Effects: Funds related to the disallowed activities were required to be repaid to the Alabama Coalition Against Rape. Incorrectly assigning activities to grants could result not only in repayment of monies related disallowed activities but the canceling of the related grant agreements if not corrected in a timely fashion. Recommendation: We recommend the Board review its processes to ensure that only allowed costs and activities be assigned to the related grant. Auditee's Response: We acknowledge the above finding. Misappropriated monies were repaid to ACAR. Sexual Assault staff were released and the program has been halted.

Corrective Action Plan

2nd Chance paid $10,084.30 in overpayment of funds to the Alabama Coalition Against Rape on 10/3/2023 for the fiscal year ending 9/30/2023.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 403697 2023-001
    Material Weakness
  • 980139 2023-001
    Material Weakness
  • 980140 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $270,572
14.321 Fha Technical Assistance Training Ð Transformation Initiative $193,306
14.231 Emergency Solutions Grant Program $109,481
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $95,616
16.017 Sexual Assault Services Formula Program $23,504
93.558 Temporary Assistance for Needy Families $18,719
16.582 Crime Victim Assistance/discretionary Grants $13,406
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $13,124
16.588 Violence Against Women Formula Grants $11,259
97.024 Emergency Food and Shelter National Board Program $4,916