Finding Text
Criteria: Recipients of Federal awards must establish and maintain effective internal controls over program income and maintain evidence that such internal controls were performed. Amounts reported as program income on the SF-425 Federal Financial Report are to be in accordance with the HIV/AIDS Bureau Policy Clarification Notice #15-03.
Condition: The Corporation was unable to provide evidence of review and approval of the calculation of reported program income on the SF-425 Federal Financial Report for the reporting period end date of December 31, 2022.
Cause: The Corporation did not have formal policies and procedures over program income reported on the SF-425 Federal Financial Report.
Effect or Potential Effect: The amount of program income on the SF-425 Federal Financial Report for the reporting period end date of December 31, 2022, submitted to the granting agencies may be inaccurate.
Questioned costs: Unknown
Context: Management was not able to provide sufficient and appropriate evidence that the reported program income on the SF-425 Federal Financial was reviewed and approved, prior to submission to the granting agencies.
Repeat finding: This is a repeat finding from prior year. This was reported as finding 2021-008 in the 2021 report.
Recommendation: We recommend the Corporation establish formal internal controls, and documentation of their performance, relating to the calculation and review and approval of program income by appropriate personnel who is knowledgeable of such requirements and calculations.
View of Responsible Officials: Due to turnover of several key financial executives and personnel and lack of formal documentation of current policies and procedures, the Corporation was unable to provide evidence of review and approval of the calculation of reported program income on the SF-425 Federal Financial Report for the reporting period end date of December 31, 2022.