Finding 42060 (2022-007)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-09-27
Audit: 45576
Organization: Rikarbon, Inc. (DE)

AI Summary

  • Core Issue: The Company claimed expenses on duplicate invoices, leading to overclaimed costs.
  • Impacted Requirements: Grant funding must only cover valid expenses, and accurate financial statements are essential.
  • Recommended Follow-Up: Train finance staff and improve internal controls, potentially with help from an outside CPA firm.

Finding Text

2022-007: DUPLICATE PAYMENTS Criteria: Grant funding should only be claimed for reimbursement of valid expenses. Condition: The Company claimed expenses on duplicate invoices entered into the accounting information system. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company overstated and overclaimed expenses. Questioned Costs: $406.27, while the amount identified is immaterial to the grant, due to lack of segregation of duties identified in finding 2022-02, there may be additional items not identified as part of testing. Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Context: A total sample of forty-five (45) of four hundred and nineteen (419) items related to disbursements under the major program were selected as a part of allowable cost compliance requirement testing. Recommendation: The Company should ensure that finance staff is adequately trained as well as revising and monitoring internal controls. View of Responsible Officials and Planned Corrective Action: The Company will ensure that finance staff is adequately trained as well as revising and monitoring internal controls by engaging an outside certified public accounting firm for assistance.

Corrective Action Plan

Recommendation: The Company should ensure that finance staff is adequately trained as well as revising and monitoring internal controls. Corrective Actions: The Company will ensure that finance staff is adequately trained as well as revising and monitoring internal controls by engaging an outside certified public accounting firm for assistance.

Categories

Questioned Costs Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

  • 42056 2022-003
    Material Weakness
  • 42057 2022-004
    Material Weakness
  • 42058 2022-005
    Material Weakness
  • 42059 2022-006
    Material Weakness
  • 42061 2022-003
    Material Weakness
  • 42062 2022-004
    Material Weakness
  • 42063 2022-005
    Material Weakness
  • 42064 2022-006
    Material Weakness
  • 42065 2022-007
    Material Weakness
  • 42066 2022-003
    Material Weakness
  • 42067 2022-004
    Material Weakness
  • 42068 2022-005
    Material Weakness
  • 42069 2022-006
    Material Weakness
  • 42070 2022-007
    Material Weakness
  • 42071 2022-003
    Material Weakness
  • 42072 2022-004
    Material Weakness
  • 42073 2022-005
    Material Weakness
  • 42074 2022-006
    Material Weakness
  • 42075 2022-007
    Material Weakness
  • 618498 2022-003
    Material Weakness
  • 618499 2022-004
    Material Weakness
  • 618500 2022-005
    Material Weakness
  • 618501 2022-006
    Material Weakness
  • 618502 2022-007
    Material Weakness
  • 618503 2022-003
    Material Weakness
  • 618504 2022-004
    Material Weakness
  • 618505 2022-005
    Material Weakness
  • 618506 2022-006
    Material Weakness
  • 618507 2022-007
    Material Weakness
  • 618508 2022-003
    Material Weakness
  • 618509 2022-004
    Material Weakness
  • 618510 2022-005
    Material Weakness
  • 618511 2022-006
    Material Weakness
  • 618512 2022-007
    Material Weakness
  • 618513 2022-003
    Material Weakness
  • 618514 2022-004
    Material Weakness
  • 618515 2022-005
    Material Weakness
  • 618516 2022-006
    Material Weakness
  • 618517 2022-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
81.049 Office of Science Financial Assistance Program $195,323