Finding 43881 (2022-001)

Significant Deficiency
Requirement
CL
Questioned Costs
-
Year
2022
Accepted
2023-09-23
Audit: 38665
Organization: Npower Inc. (NY)

AI Summary

  • Core Issue: There is a lack of proper segregation of duties in the preparation and submission of drawdown requests.
  • Impacted Requirements: This affects the internal control over compliance for federal funding programs.
  • Recommended Follow-Up: Implement an internal control process for reviewing drawdown requests to prevent errors.

Finding Text

Finding 2022-001 - Segregation of Duties (Internal Control over Compliance) ALN Nos.: 97.127 - Cybersecurity Education and Training Assistance Program (CETAP) and 21.027 - COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Year: January 1, 2022 - December 31, 2022 Federal Agencies: United States Department of Homeland Security and United States Department of Treasury Pass Through Entity: Mayor?s Office of Employment Development ? Baltimore for ALN 21.027 Criteria: Management is responsible for controls over review of drawdown requests and reporting. Condition/Context: The individual preparing the drawdown request and reporting is the same individual that submits the documents. Cause: The size of the Organization does not allow for proper segregation of duties for drawdown requests and reporting. Effect: Errors in the drawdown requests and reporting may occur and not be detected within a timely period. Questioned Costs: None. Recommendation: The Organization should develop an internal control process for proper preparation and review of the required drawdown requests and reporting. Views of Responsible Officials: Management agrees with the recommendation and plans to put in place an internal control process.

Corrective Action Plan

September 21, 2023 Baker Tilly US, LLP 1500 RXR Plaza ? West Tower Uniondale, New York 11556 Dear Auditors: In connection with your audit of the federal awards received by NPower Inc. for the year ended December 31, 2022, in accordance with Government Auditing Standards and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), the following outlines NPower Inc.?s plans to address the Federal Awards Finding from the audit report: Finding Criteria: Management is responsible for controls over review of drawdown requests and reporting. Condition/Context: The individual preparing the drawdown request and reporting is the same individual that submits the documents. Cause: The size of the Organization does not allow for proper segregation of duties for drawdown requests and reporting. Effect: Errors in the drawdown requests and reporting may occur and not be detected within a timely period. Resolution ? Effective immediately, for all federal awards, to address the fact that the individual preparing the drawdown requests and reporting is the same individual that submits the documents, we will implement the following: a. I will prepare the drawdown requests and report for submission and submit the documents to Stefanie Boles, our Chief Administrative Officer, for her review and approval to submit to the funding source for reimbursement. b. Upon receipt of approval from Stefanie, the reporting for the grant will be submitted as appropriate to the funding source. This process will remain in effect until such time as we have a more junior staff person who can prepare the reporting and submit it to me for review. Please let me know if you have any questions about the proposed resolution approach. ????????????????? Thomas Sussman Vice President, Finance & Business Operations

Categories

Internal Control / Segregation of Duties Cash Management Reporting

Other Findings in this Audit

  • 43882 2022-001
    Significant Deficiency
  • 620323 2022-001
    Significant Deficiency
  • 620324 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.127 Cybersecurity Education and Training Assistance Program (cetap) $365,430
21.027 Coronavirus State and Local Fiscal Recovery Funds $317,707
17.207 Employment Service/wagner-Peyser Funded Activities $124,095
17.285 Apprenticeship USA Grants $43,682
17.278 Wioa Dislocated Worker Formula Grants $37,500
17.258 Wioa Adult Program $37,500
17.259 Wioa Youth Activities $37,500