Finding 47431 (2022-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-08-17

AI Summary

  • Core Issue: Internal controls over reimbursement requests are weak, with one person handling both preparation and submission.
  • Impacted Requirements: Compliance with 2 CFR 200.303 is at risk, as accurate and timely reporting is not ensured.
  • Recommended Follow-Up: Implement segregation of duties by assigning report submission to a different individual for secondary review.

Finding Text

Item 2022-001 (Recurring): Improving Internal Controls over Reimbursement Requests Federal Program: Crime Victim Assistance Program, Assistance Listing 16.575 Type: Significant Deficiency Compliance Requirement: Reporting Criteria: 2 CFR 200.303 requires that internal control must provide reasonable assurance that the Center complies with the requirements of the Uniform Guidance and its grant agreements. In the context of reporting to granting agencies, internal control must be established to ensure that reports are submitted accurately and timely. Condition: For the fiscal year under audit, reimbursement requests were prepared and submitted to the granting agency by a single individual who also prepares the accounting records from which the requests are prepared. Cause: The Center has not adopted control activities over the reimbursement request process, such as segregation of duties or secondary review. Effect or Potential Effect: Reimbursement requests could be sent to the granting agency with errors and omissions or not on time. Questioned Costs: None Recommendation: We recommend that the Center segregate the duty of submission of the reports to another individual not involved with preparation of accounting records or the reports themselves to allow for secondary review. Management?s Response: We agree with the finding. After this item was reported in the prior year audit, management took steps to enact this secondary review, and these procedures were in place by the end of fiscal year 2022.

Corrective Action Plan

Item 2022-001 (Recurring): Improving Internal Controls over Reimbursement Requests Criteria: 2 CFR 200.303 requires that internal control must provide reasonable assurance that the Center complies with the requirements of the Uniform Guidance and its grant agreements. In the context of reporting to granting agencies, internal control must be established to ensure that reports are submitted accurately and timely. Condition: For the fiscal year under audit, reimbursement requests were prepared and submitted to the granting agency by a single individual who also prepares the accounting records from which the requests are prepared. Cause: The Center has not adopted control activities over the reimbursement request process, such as segregation of duties or secondary review. Effect: Reimbursement requests could be sent to the granting agency with errors and omissions or not on time. Recommendation: We recommend that the Center segregate the duty of submission of the reports to another individual not involved with preparation of accounting records or the reports themselves to allow for secondary review. PERSON RESPONSIBLE FOR CORRECTION ACTION: Aleigh Ascherl, Executive Director CORRECTIVE ACTION PLANNED: The Center has implemented controls and taken steps to ensure a secondary review is in place. ANTICIPATED COMPLETION DATE: September 30, 2023

Categories

Internal Control / Segregation of Duties Cash Management Reporting Significant Deficiency

Other Findings in this Audit

  • 47432 2022-001
    Significant Deficiency Repeat
  • 623873 2022-001
    Significant Deficiency Repeat
  • 623874 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $424,903
16.320 Services for Trafficking Victims $381,222
16.017 Sexual Assault Services Formula Program $60,040