Finding Text
Finding 2020-003: Reconciliation of Accounts Material Weakness Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include
the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial
management", the financial management system of each non-Federal entity must provide for
identification, in its accounts, of all Federal awards received and expended and the Federal
programs under which they were received, and records that identify adequately the source and
application of funds for federally-funded activities including expenditures.
Condition: The year-end schedules for federal grants receivable, for net assets, and for vacation
payable were not reconciled and needed to be revised and updated.
Cause: Errors in transferring balances between years occurred, which impacted carry-over
amounts and the ending balances as of 12/31/2020. Related to vacation payables, the schedule
had not been properly adjusted to account for the number of days in the last pay period.
Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2020,
creating a liability to the federal government. The related grant receivable and liability balances
were not properly stated before adjustment as a result.
Questioned Costs: $77,113.
Identification as a Repeat Finding, if Applicable: 2019-002
Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into
the accounting information system or which the information in the schedules will
otherwise be used to initiate financial transactions, and the transactions and schedules be
reviewed by a supervisor.
Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to
NSF of $73,057 will be reimbursed when AAPT files the next drawn down request. Anticipated
date of drawn down will be by April, 30,2024 The remaining balance was earned in 2021.
The senior accountant will be trained to prepare entries previously prepared by the CFO
The senior accountant will reconcile accounts, and provide updated current schedules.
The CFO will review and approve the entries and schedules prepared by the Senior accountant.
Anticipated Completion Date: 05/01/2024
Responsible Official: Michael Brosnan, CFO