FAC Explorer

Finding 480886 (2023-002)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-08-12
Audit: 317013
Organization: Four Oaks Family and Children's Services and Combined Entities (IA)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: Costs incurred by the Organization lacked formal approval, violating federal requirements.
  • Impacted Requirements: Compliance with 2 CFR 200.303(a) for effective internal controls over federal awards.
  • Recommended Follow-Up: Management should review and improve procedures for approving allocated costs.

Finding Text

Finding 2023-002—Approval of Costs Identification of the federal program: Assistance Listing Number 93.558 Temporary Assistance for Needy Families – 477 Cluster Condition: The Organization incurred allowable costs including benefit allocations and purchase of supplies in which there was no formal approval of the cost. Criteria: The Code of Federal Regulations (2 CFR 200.303(a)) requires that each non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the federal award. Context: The Organization did not have formal approval of an allocated or incurred costs for 10 of the 60 items selected for testing. Cause: The Organization’s processes and controls established for review and approval of expenses incurred did not provide evidence of approval of the cost due to limited number of individuals within the Organization. Effect or potential effect: Noncompliance with federal regulations. Questioned costs: None Identification as a repeat finding, if applicable: No. Recommendation: We recommend management evaluate procedures in place for ensuring approval of allocated costs. Views of responsible officials and planned corrective actions: Management agrees with the finding. See attached letter.

Corrective Action Plan

Identifying Number: 2023-002 Finding : There are allowable costs such as a benefit allocation and supplies in which there was no formal approval of the cost. Corrective Actions Taken or Planned: Additional levels of review and monitoring over compliance with the contract will be put in place. Contact person: Steve Schuring, CFO Date of completion: June 2024

Categories

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 480887 2023-002
    Material Weakness
  • 480888 2023-003
    Material Weakness
  • 480889 2023-004
    Material Weakness
  • 480890 2023-004
    Material Weakness
  • 480891 2023-004
    Material Weakness
  • 480892 2023-004
    Material Weakness
  • 480893 2023-004
    Material Weakness
  • 480894 2023-004
    Material Weakness
  • 480895 2023-004
    Material Weakness
  • 480896 2023-004
    Material Weakness
  • 480897 2023-004
    Material Weakness
  • 480898 2023-004
    Material Weakness
  • 480899 2023-004
    Material Weakness
  • 480900 2023-004
    Material Weakness
  • 480901 2023-004
    Material Weakness
  • 480902 2023-004
    Material Weakness
  • 480903 2023-004
    Material Weakness
  • 480904 2023-004
    Material Weakness
  • 480905 2023-004
    Material Weakness
  • 1057328 2023-002
    Material Weakness
  • 1057329 2023-002
    Material Weakness
  • 1057330 2023-003
    Material Weakness
  • 1057331 2023-004
    Material Weakness
  • 1057332 2023-004
    Material Weakness
  • 1057333 2023-004
    Material Weakness
  • 1057334 2023-004
    Material Weakness
  • 1057335 2023-004
    Material Weakness
  • 1057336 2023-004
    Material Weakness
  • 1057337 2023-004
    Material Weakness
  • 1057338 2023-004
    Material Weakness
  • 1057339 2023-004
    Material Weakness
  • 1057340 2023-004
    Material Weakness
  • 1057341 2023-004
    Material Weakness
  • 1057342 2023-004
    Material Weakness
  • 1057343 2023-004
    Material Weakness
  • 1057344 2023-004
    Material Weakness
  • 1057345 2023-004
    Material Weakness
  • 1057346 2023-004
    Material Weakness
  • 1057347 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $3.11M
93.658 Foster Care_title IV-E $2.67M
93.659 Adoption Assistance $2.56M
93.667 Social Services Block Grant $492,435
93.958 Block Grants for Community Mental Health Services $219,819
10.555 National School Lunch Program $203,115
93.645 Stephanie Tubbs Jones Child Welfare Services Program $143,815
10.553 School Breakfast Program $136,760
93.603 Adoption Incentive Payments $125,274
93.556 Promoting Safe and Stable Families $76,853
93.575 Child Care and Development Block Grant $74,170
93.472 Title IV-E Prevention and Family Services and Programs (a) $40,190
10.559 Summer Food Service Program for Children $14,723