FAC Explorer

Finding 404193 (2023-001)

Significant Deficiency
Requirement
H
Questioned Costs
-
Year
2023
Accepted
2024-06-28
Audit: 310966
Organization: North Iowa Community Action Organization (IA)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The Organization failed to expense some grant costs under $50 received after the performance period.
  • Impacted Requirements: This practice violates the requirement to expense transactions in the month they are incurred.
  • Recommended Follow-Up: Revise the policy on expensing immaterial costs to ensure compliance by the end of the grant period.

Finding Text

2023 – 001 – Special Supplemental Nutrition Program for Women, Infants and Children (WIC) – Assistance Listing No. 10.557 Type of Finding: Significant Deficiency Condition: The Organization did not accrue some grant expenses received after the period of performance that were under $50. Criteria or specific requirement: The Organization should expense transactions in the month incurred to be in compliance with the period of performance requirements. Effect: The Organization is not in compliance with period of performance requirements. Recommendation: We recommend the organization expense transactions in the month incurred. Although transactions below $50 are individually immaterial, this is not in compliance with the period of performance compliance requirements. Cause: The Organization had a policy to pass on immaterial expenses received after the period of performance, if under $50. Repeat Finding: The finding is not a repeat of a finding. Action planned/taken in response to finding: The Organization will revisit their policy not to backdate expenses less than $50 to their correct period if invoices are received 15 days after the end of the grant period. Planned completion date for corrective action plan: Year ended September 30, 2024

Corrective Action Plan

U. S Department of Health and Human Services North Iowa Community Action Organization respectfully submits the following corrective action plan for the year ended September 30, 2023 Audit period: October 01, 2022 to September 30, 2023 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS SIGNIFICANT DEFICIENCY 2023-001 Special Supplemental Nutrition Program for Women, Infants and Children (WIC) – Assistance Listing No. 10.557 Recommendation: We recommend the organization expense transactions in the month incurred. Although transactions below $50 are individually immaterial, this is not in compliance with the period of performance compliance requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Organization will revisit their policy not to backdate expenses less than $50 to their correct period if invoices are received 15 days after the end of the grant period. Name(s) of the contact person(s) responsible for corrective action: Cindy Davis, Executive Director. Planned completion date for corrective action plan: year ended September 30, 2024

Categories

Period of Performance Significant Deficiency

Other Findings in this Audit

  • 980635 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $871,805
10.558 Child and Adult Care Food Program $173,114
93.568 Low-Income Home Energy Assistance $143,864
93.569 Community Services Block Grant $111,233
93.217 Family Planning_services $92,164
93.917 Hiv Care Formula Grants $81,064
93.600 Head Start $33,183
93.778 Medical Assistance Program $17,511
93.558 Temporary Assistance for Needy Families $6,142
93.994 Maternal and Child Health Services Block Grant to the States $3,159