Finding 479154 (2023-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-07-22
Audit: 315643
Organization: The Warren Center, Inc, (TX)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to allowable costs for Special Education grants.
  • Impacted Requirements: Invoices and allocations must be approved and match the amounts charged to grant activities.
  • Recommended Follow-Up: Management should verify that all amounts charged to grants align with invoices before submitting reimbursement requests.

Finding Text

Finding 2023-002: Allowable costs – significant deficiency in internal controls over compliance and compliance finding. Special Education - Grants for Infants and Families ALN 84.181 Early Childhood Intervention Services Criteria: The Organization’s internal control procedures over compliance specify that all invoices and allocations are approved and agree to the amount allocated to grant activities. Condition: During allowable cost testing for federal and state grants, for 1 of the 25 invoices tested, the base amount used for allocation and charged to the grant did not agree to the invoice. Cause: There was human error when the amount was entered into the accounting software and, ultimately, an oversight due to turnover in personnel. Effect: The Organization's grant expenses were not fully documented in accordance with the internal control over compliance procedures. Questioned Costs: None Recommendation: Management should ensure amounts charged to the grants agree to invoices before the request for reimbursement is submitted. Management’s Response: See corrective action plan

Corrective Action Plan

Finding 2023-002: Allowable costs – significant deficiency in internal controls over compliance and compliance finding. Management Response All submissions of expenses reimbursed by grants will require review by the Controller or the COO, in the Controller’s absence, to ensure that expenditures charged to the grants agree to the original documents (invoices or receipts) prior to submission or charging to a specific grant.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management Significant Deficiency

Other Findings in this Audit

  • 479153 2023-001
    Material Weakness
  • 479155 2023-003
    Significant Deficiency
  • 1055595 2023-001
    Material Weakness
  • 1055596 2023-002
    Significant Deficiency
  • 1055597 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.181 Special Education-Grants for Infants and Families $1.39M
93.498 Provider Relief Fund $223,945
84.027 Special Education_grants to States $218,880
93.558 Temporary Assistance for Needy Families $214,101
93.434 Every Student Succeeds Act/preschool Development Grants $167,362
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $8,937