Finding 403965 (2023-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-06-28
Audit: 310821
Organization: Disability Rights Washington (WA)
Auditor: Clark Nuber P S

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to financial reporting for the Developmental Disabilities Grants.
  • Impacted Requirements: The reporting did not meet the accuracy standards set by 2 CFR 200.328, specifically regarding the unused Program Income balance.
  • Recommended Follow-Up: DRW should implement stronger internal controls to ensure all financial reports are accurate and compliant with federal requirements.

Finding Text

Finding 2023-003 Significant deficiency in internal controls over compliance related to reporting. Federal Agency: U.S. Department of Health and Human Services Program Title: Developmental Disabilities Basic Support and Advocacy Grants Assistance Listing Number: 93.630 Awards Number: 2201WAPADD-00 & 03; 2001WAPAPH-00 & 01 Award Period: 10/01/2021 - 9/30/2024 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Subpart D section 2 CFR 200.328 (as codified by the Department of Health and Human Services [DHHS] in 45 CFR 75) requires accurate financial reporting to be submitted under the terms of the Federal award. Condition/Context For the year ended September 30, 2023, DRW submitted their required semi-annual SF-425 reporting for the reporting period ending September 30, 2023. Though the reporting was submitted timely, it contained inaccurate information related to the balance of their unused Program Income, excluding their unused balance of approximately $142,000. Effect/Potential Effect DRW did not comply with the accuracy reporting requirement as specific in 2 CFR 200.328 Questioned Costs Not applicable Cause DRW’s internal controls were not designed to ensure accurate reporting Repeat Finding Not applicable Recommendation We recommend that DRW implement internal controls to ensure required reporting includes accurate information. Views of Responsible Officials Management agrees with the finding and has provided the corrective action plan following the Single Audit Report.

Corrective Action Plan

Corrective Action: As part of DRW’s internal control revision, we will enhance policies and practices associated with reporting including the semi-annual SF-425. Steps: 1. DRW will review current systems and tools in use for reporting and complying with Federal award reporting requirements and modify or implement systems or tools that are more reliably accurate than current systems and tools. 2. DRW will implement internal controls that require the preparation and review of federal reporting requirements by two distinct people at DRW. 3. DRW will implement a reporting calendar and review regularly to ensure activities including preparation and review are being performed regularly and consistently. Anticipated completion September 30, 2024.

Categories

Reporting Allowable Costs / Cost Principles Significant Deficiency Program Income

Other Findings in this Audit

  • 403964 2023-002
    Significant Deficiency
  • 403966 2023-002
    Significant Deficiency
  • 403967 2023-003
    Significant Deficiency
  • 980406 2023-002
    Significant Deficiency
  • 980407 2023-003
    Significant Deficiency
  • 980408 2023-002
    Significant Deficiency
  • 980409 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
96.009 Social Security State Grants for Work Incentives Assistance to Disabled Beneficiaries $533,586
93.138 Protection and Advocacy for Individuals with Mental Illness $523,143
84.240 Program of Protection and Advocacy of Individual Rights $411,928
93.618 Voting Access for Individuals with Disabilities-Grants for Protection and Advocacy Systems $144,749
93.843 Acl Assistive Technology State Grants for Protection and Advocacy $75,960
21.027 Coronavirus State and Local Fiscal Recovery Funds $71,302
93.873 State Grants for Protection and Advocacy Services $66,294
93.630 Developmental Disabilities Basic Support and Advocacy Grants $65,224