Finding 4154 (2022-003)

CRITERIA: Refugee Entrant and Assistance Program grant funds can only be used to cover expenses related to the operation of this program. Allowable grant activities include providing eligible refugees with employability and other essential services as outRefugee Entrant and Assistance Program grant funds can only be used to cover expenses related to the operation of this program. Allowable grant activities include providing eligible refugees with employability and other essential services as outlined in the Refugee Entrant and Assistance Program compliance supplement. STATEMENT OF CONDITION: During the performance of the audit, two (2) transportation transactions had been authorized by management for reimbursement under the Refugee Entrant and Assistance Program for expenses incurred in another grant program. STATEMENT OF CAUSE: Management mistakenly grouped these expenses together with the Refugee Entrant and Assistance Program. EFFECT: Costs not allowable under the terms of the grant were reimbursed to the Pennsylvania Department of Human Services. QUESTIONED COSTS: $1,012 CONTEXT: Given that 69 transactions were tested out of a total 415 (16.55% Coverage) and only two transactions were found to have exceptions. Extrapolating the error rate out to the whole population would give an estimated 12 transactions made in error (2.9% error rate). REPEAT FINDING: No RECOMMENDATION: We recommends management implement controls to document better the grant programs for which invoices were incurred. VIES OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: ISC will draft clear guidelines for the correct categorization of expenses on expense reports. These reports will be stored securely for a period of 3 years. Furthermore, relevant staff members will undergo training to understand and execute these procedures accurately. We are exploring software alternatives to QuickBooks to improve our record-keeping for research expenditures. We target to complete this analysis by 12/31/23 and will share the results with you thereafter. The Program Manager will train the Administrative Assistant and Fiscal Assistant on proper accounting procedures adhering to accounting standards.