FAC Explorer

Finding 481322 (2023-002)

Material Weakness
Requirement
F
Questioned Costs
-
Year
2023
Accepted
2024-08-16
Audit: 317396
Organization: Rural Resources Community Action (WA)
Auditor: Moss Adams

AI Summary

  • Core Issue: The Organization failed to conduct a required physical inventory of federally funded equipment within the last two years.
  • Impacted Requirements: This noncompliance violates 2 CFR 215.34(3), which mandates biennial inventory checks.
  • Recommended Follow-Up: Implement controls to ensure timely tagging and inventory of equipment, and maintain accurate records for additions and disposals by August 30th, 2024.

Finding Text

FINDING 2023‐002 – Equipment & Real Property Management; Material Weakness in Internal Control over Compliance and Instance of Material Noncompliance U.S. Department of Health and Human Services Assistance Listing Number:93.600 Federal Program Name: Head Start Cluster Award Year: 2019-2022 Criteria: Per 2 CFR 215.34(3) - A physical inventory of equipment shall be taken, and the results reconciled with the equipment records at least once every two years. Condition: The Organization did not inventory equipment purchased with federal funds within the last two years. Context: During our testing of equipment and real property management, we noted that for all 5 items in our sample, an inventory of these items had not been performed in the prior 2 years. Our sample was selected using a random methodology, rather than a statistical sampling methodology, from the 49 item population. We additionally noted one instance of an asset that was disposed in a prior period but was not reflected in the accounting records until fiscal year 2023. Cause: The finding and material weakness is due to the controls not designed properly to ensure an inventory was being performed every two years. Repeat finding: No Effect: Noncompliance to the requirement that equipment purchased with federal funds be inventoried at least once every two years, as well as a disposal not being recorded in the correct period. Questioned costs: None noted. Recommendation: We recommend the Organization design and implement controls to ensure that all equipment purchased with federal funds is tagged and inventoried every two years. In addition, the Organization should maintain documentation of when the inventory takes place and have procedures in place to track and record any new additions or disposals on a timely basis. Views of responsible officials and planned corrective actions: Management agrees with the assessment and understands the importance of regular physical inventories. The Organization has designed an internal control process that will be implemented by August 30th, 2024.

Corrective Action Plan

FINDING 2023-002 – Equipment & Real Property Management; Material Weakness in Internal Control over Compliance and Instance of Material Noncompliance Views of responsible officials and planned corrective actions: Management agrees with the assessment and understands the importance of regular physical inventories. The Organization has designed an internal control process that will be implemented by August 30th, 2024. Contact Persons: Ryan Berendsen, Chief Operating Officer Delana Kromer, Controller

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 481323 2023-002
    Material Weakness
  • 481324 2023-003
    Material Weakness
  • 481325 2023-003
    Material Weakness
  • 481326 2023-003
    Material Weakness
  • 481327 2023-003
    Material Weakness
  • 481328 2023-003
    Material Weakness
  • 481329 2023-003
    Material Weakness
  • 481330 2023-003
    Material Weakness
  • 481331 2023-003
    Material Weakness
  • 481332 2023-003
    Material Weakness
  • 481333 2023-004
    Significant Deficiency Repeat
  • 481334 2023-004
    Significant Deficiency Repeat
  • 481335 2023-004
    Significant Deficiency Repeat
  • 481336 2023-004
    Significant Deficiency Repeat
  • 481337 2023-004
    Significant Deficiency Repeat
  • 481338 2023-004
    Significant Deficiency Repeat
  • 481339 2023-004
    Significant Deficiency Repeat
  • 481340 2023-004
    Significant Deficiency Repeat
  • 481341 2023-004
    Significant Deficiency Repeat
  • 481342 2023-004
    Significant Deficiency Repeat
  • 481343 2023-004
    Significant Deficiency Repeat
  • 481344 2023-004
    Significant Deficiency Repeat
  • 481345 2023-004
    Significant Deficiency Repeat
  • 481346 2023-004
    Significant Deficiency Repeat
  • 481347 2023-004
    Significant Deficiency Repeat
  • 481348 2023-004
    Significant Deficiency Repeat
  • 481349 2023-004
    Significant Deficiency Repeat
  • 481350 2023-004
    Significant Deficiency Repeat
  • 1057764 2023-002
    Material Weakness
  • 1057765 2023-002
    Material Weakness
  • 1057766 2023-003
    Material Weakness
  • 1057767 2023-003
    Material Weakness
  • 1057768 2023-003
    Material Weakness
  • 1057769 2023-003
    Material Weakness
  • 1057770 2023-003
    Material Weakness
  • 1057771 2023-003
    Material Weakness
  • 1057772 2023-003
    Material Weakness
  • 1057773 2023-003
    Material Weakness
  • 1057774 2023-003
    Material Weakness
  • 1057775 2023-004
    Significant Deficiency Repeat
  • 1057776 2023-004
    Significant Deficiency Repeat
  • 1057777 2023-004
    Significant Deficiency Repeat
  • 1057778 2023-004
    Significant Deficiency Repeat
  • 1057779 2023-004
    Significant Deficiency Repeat
  • 1057780 2023-004
    Significant Deficiency Repeat
  • 1057781 2023-004
    Significant Deficiency Repeat
  • 1057782 2023-004
    Significant Deficiency Repeat
  • 1057783 2023-004
    Significant Deficiency Repeat
  • 1057784 2023-004
    Significant Deficiency Repeat
  • 1057785 2023-004
    Significant Deficiency Repeat
  • 1057786 2023-004
    Significant Deficiency Repeat
  • 1057787 2023-004
    Significant Deficiency Repeat
  • 1057788 2023-004
    Significant Deficiency Repeat
  • 1057789 2023-004
    Significant Deficiency Repeat
  • 1057790 2023-004
    Significant Deficiency Repeat
  • 1057791 2023-004
    Significant Deficiency Repeat
  • 1057792 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
17.258 Wia Adult Program $594,630
17.259 Wia Youth Activities $567,858
10.766 Community Facilities Loans and Grants $427,154
14.231 Emergency Solutions Grant Program $344,323
10.218 Usda Loan $332,978
14.239 Home Investment Partnerships Program $331,769
93.568 Low-Income Home Energy Assistance $243,869
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $242,520
17.278 Wia Dislocated Worker Formula Grants $142,826
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $140,038
93.569 Community Services Block Grant $125,215
93.499 Low Income Household Water Assistance Program $98,252
10.568 Emergency Food Assistance Program (administrative Costs) $94,600
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $91,162
93.052 National Family Caregiver Support, Title Iii, Part E $82,532
93.575 Child Care and Development Block Grant $73,615
93.600 Head Start $68,665
17.277 Workforce Investment Act (wia) National Emergency Grants $62,239
16.575 Crime Victim Assistance $61,610
14.169 Housing Counseling Assistance Program $60,115
81.999 Bonneville Power Administration/liee Program $58,892
10.218 Farmers Home Administration Loan $49,141
93.053 Nutrition Services Incentive Program $36,618
93.778 Medical Assistance Program $26,784
93.558 Temporary Assistance for Needy Families $25,687
10.558 Child and Adult Care Food Program $24,814
10.565 Commodity Supplemental Food Program $24,363
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $24,289
10.U01 Consolidated Approp Act Funds 01.22-09.22 $23,032
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $21,915
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $15,240
16.588 Violence Against Women Formula Grants $13,480
10.415 Rural Rental Housing Loans $12,760
81.042 Weatherization Assistance for Low-Income Persons $12,147
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $11,146
21.027 Coronavirus State and Local Fiscal Recovery Funds $9,577
93.136 Injury Prevention and Control Research and State and Community Based Programs $7,250
64.035 Veterans Transportation Program $4,558
10.182 Local Food Purchase Assistance $3,382
21.019 Coronavirus Relief Fund $2,275
21.023 Emergency Rental Assistance Program $229