Finding Text
Financial Management System- (Material Weakness) Criteria:According to 2 CFR 200.302, the financial management system of each non-Federal entity must provide records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation.
Condition:
Statement of financial position transactions were not allocated properly to programs/properties funded with federal funds.
Cause:
Due to a human error of individuals who were handling the accounting entries, some of transactions were not accurately allocated to the correct programs/properties.
Effect:
Improper allocation of transactions among various programs/properties could lead to comingling of funds from different projects. This could result in unallowable cost or in allowable cost charged simultaneously to two different programs/properties.
Questioned Cost:
Undetermined
Recommendation:
Establish an internal control procedures in place that provide for separate accountability for projects by allocating transactions properly and producing accurate financial reports for each federally funded programs/properties.
Management's Views and Corrective Action Plan
Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost