Finding 496369 (2021-103)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2021
Accepted
2024-09-10

AI Summary

  • Core Issue: ITCN is not complying with contract requirements for restricted funds, showing significant cash balances while having high deferred revenues and loans to other funds.
  • Impacted Requirements: Non-compliance with 2 CFR §200.305, which mandates that advance payments should closely match actual disbursements for program costs.
  • Recommended Follow-Up: ITCN should implement corrective actions as outlined in finding 2021-002 to address oversight and resource issues in financial reporting.

Finding Text

Condition and Context: As noted in finding 2021-002, ITCN had cash balances in the amount of $470,318, while also reporting a total deferred revenue of $1,377,071 and a due to grantor agency of $269,375. At September 30, 2021, the WIC program is reporting deferred revenues of $292,379 while reflecting an amount loaned to other funds relating to these restricted sources totaling $227,217. Also, at September 30, 2021, the Child Care and Development Block Grant program is reporting deferred revenues of $416,668 while reflecting an amount loaned to other funds relating to these restricted sources totaling $889,729. As a result, ITCN is not in compliance with their contracts governing the use of these restricted funds. Criteria: 2 CFR §200.305, Federal Payment, requires that non-federal entities establish written policies so that advance payments are as close as administratively feasible to the actual disbursements for direct program or project costs. Cause and Effect: The cause is a lack of resources and oversight of the accounting and financial reporting process. The effect is the use of restricted cash to fund other expenses not related to the restricted purpose. Recommendation: We recommend that ITCN implement the recommendations noted in finding 2021-002. Management’s Response: ITCN’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.

Categories

Matching / Level of Effort / Earmarking Cash Management Reporting

Other Findings in this Audit

  • 496357 2021-101
    Material Weakness Repeat
  • 496358 2021-101
    Material Weakness Repeat
  • 496359 2021-101
    Material Weakness
  • 496360 2021-101
    Material Weakness Repeat
  • 496361 2021-101
    Material Weakness
  • 496362 2021-102
    Material Weakness Repeat
  • 496363 2021-102
    Material Weakness Repeat
  • 496364 2021-102
    Material Weakness
  • 496365 2021-102
    Material Weakness Repeat
  • 496366 2021-102
    Material Weakness
  • 496367 2021-103
    Material Weakness
  • 496368 2021-103
    Material Weakness Repeat
  • 496370 2021-104
    Significant Deficiency
  • 1072799 2021-101
    Material Weakness Repeat
  • 1072800 2021-101
    Material Weakness Repeat
  • 1072801 2021-101
    Material Weakness
  • 1072802 2021-101
    Material Weakness Repeat
  • 1072803 2021-101
    Material Weakness
  • 1072804 2021-102
    Material Weakness Repeat
  • 1072805 2021-102
    Material Weakness Repeat
  • 1072806 2021-102
    Material Weakness
  • 1072807 2021-102
    Material Weakness Repeat
  • 1072808 2021-102
    Material Weakness
  • 1072809 2021-103
    Material Weakness
  • 1072810 2021-103
    Material Weakness Repeat
  • 1072811 2021-103
    Material Weakness
  • 1072812 2021-104
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $3.29M
93.600 Head Start $2.51M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.22M
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $869,167
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $686,599
93.047 Special Programs for the Aging_title Vi, Part A, Grants to Indian Tribes_part B, Grants to Native Hawaiians $443,670
17.265 Native American Employment and Training $263,467
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $123,944
66.926 Indian Environmental General Assistance Program (gap) $122,079
16.841 Voca Tribal Victim Services Set-Aside Program $112,340
16.587 Violence Against Women Discretionary Grants for Indian Tribal Governments $101,417
10.558 Child and Adult Care Food Program $60,811
93.054 National Family Caregiver Support, Title Vi, Part C, Grants to Indian Tribes and Native Hawaiians $45,525
15.029 Tribal Courts $43,280
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $30,726
93.071 Medicare Enrollment Assistance Program $829