Finding 479155 (2023-003)

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 was a significant deficiency in internal controls, leading to a mismatch between the invoice and the amount charged to the grant.
  • Impacted Requirements: Internal control procedures must ensure all invoices match the allocated amounts for grant activities.
  • Recommended Follow-Up: Management should verify that amounts charged to the grant align with invoices before submission.

Finding Text

Finding 2023-003: Allowable costs – significant deficiency in internal controls over compliance and compliance finding. Provider Relief Fund (PRF) ALN 93.498. Criteria: The Organization’s internal control procedures over compliance specify that all invoices agree to the amount allocated to grant activities. Condition: During allowable cost testing, for 1 of the 25 invoices tested, the amount 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 effect of the exception noted during tested resulted in the grant being overcharged by the Organization. Questioned Costs: None. Recommendation: Management should ensure amounts charged to the grant agree to invoices before reporting. Management’s Response: See corrective action plan

Corrective Action Plan

Finding 2023-003: 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 􀆟mesheets) prior to submission or charging to a specific grant

Categories

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

Other Findings in this Audit

  • 479153 2023-001
    Material Weakness
  • 479154 2023-002
    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