FAC Explorer

Finding 502233 (2021-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2021
Accepted
2024-10-10
Audit: 324370
Organization: American Association of Physics Teachers, Inc. (MD)
Auditor: Gary Staples Accounting LLC

AI Summary

  • Core Issue: Lack of proper segregation of duties in financial processes, allowing one individual excessive control over transactions.
  • Impacted Requirements: Non-compliance with 2 CFR 200.303 regarding effective internal controls over federal awards.
  • Recommended Follow-Up: Implement training for staff, segregate payment initiation and authorization, and assign mail handling to an employee outside Finance.

Finding Text

Finding 2021-002: Segregation of Duties Federal Program: Research and Development Cluster (Education and Human Resources) Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: 1431638 (9/1/2014 – 8/31/2022), 1524963 (11/1/2015 – 9/30/2021), 1500529 (9/1/2015 – 8/31/2022), 1624185 (9/16/2016 – 8/31/2022), 1640791 (9/15/2016 – 8/31/2022), 1720869 (5/15/2017 – 4/30/2022), 1726113 (8/1/2017 – 9/30/2023), 1821462 (7/1/2018 – 6/30/2024), 1812860 (9/1/2018 – 8/31/2020), 1940925 (1/15/2020 – 12/31/2023), 1907950 (7/1/2019 – 6/30/2024), 2015205 (4/1/2020 – 3/31/2022), 2021059 (10/1/2020 – 9/30/2024) Federal Program: Research and Development Cluster (Mathematical and Physical Sciences) Assistance Listing Number and Title: 47.049 Mathematical and Physical Sciences Name of Federal Agency, Pass Through Entity, Award Number and Year: National Science Foundation: 1821372 (10/1/2018 – 9/30/2024 pass through entity American Physical Society), 1834530 (9/1/2018 – 8/31/2025 pass through entity American Physical Society), 1938815 (8/1/2020 – 7/31/2024) Federal Program: Research and Development Cluster (Science) Assistance Listing Number and Title: 43.001 Science Name of Federal Agency, Pass Through Entity: National Aeronautics and Space Administration: NNX16AR36A (8/24/2016 – 8/23/2021 pass through entity Temple University of the Commonwealth System of Higher Education), 80NSSC21K1560 (6/28/2021 – 6/27/2022 pass through entity Temple University of the Commonwealth System of Higher Education) Material Weakness in Internal Controls Over Compliance, Other matters Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR 200.303 “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Condition: The Chief Financial Officer is responsible for posting entries into the accounting system without a second level review, and obtaining all bank statements unopened while also having the ability to add or modify payees and unilaterally initiate and authorize electronic fund transfers such as automated clearing house payments. The CFO is also responsible for opening the mail which may contain payments by check, and can manually reduce receivable balances. Cause: Accounting department employees have not been trained to perform tasks that would allow for a proper segregation of duties related to accounting entries. Employees outside of the accounting department are permitted to work from home, which limits the employees who can perform functions such as opening the mail. Effect or Potential Effect: If any one employee can control all stages of a transaction, defalcations or irregularities could occur and not be detected timely. Questioned Costs: None noted. Identification as a Repeat Finding, if Applicable: 2020-002 Recommendation: We recommend that AAPT provide training to the Finance and Administration staff so that entries can be subject to supervisory review by an individual knowledgeable as to the propriety of the entries. We recommend that AAPT segregate the ability to initiate and authorize electronic payments. We recommend that an employee outside of the Finance and Administration department open the AAPT mail and create an initial recordation log of checks or cash received. Views of Responsible Officials and Planned Corrective Actions: AAPT has instituted the segregation of duties of submitting and approval of electronic payments. The senior accountant has been authorized to submit the ACH/Wire transfer requests. The CFO has the authorization of approval of submitted electronic payments. The change was activated around March 15, 2024 The staff will be trained on generating journal entries previous prepared by the CFO and supervised and approve by the CFO – completed date May 15, 2024 The administrative assistant of the CEO will come to AAPT twice weekly to process incoming mail and create an initial recordation log of checks or cash received. The administrative assistant will not have access in any system to enter/modify/delete any information related to checks that are received. Anticipated Completion Date: January 2025 Responsible Official: Michael Brosnan, CFO

Categories

Internal Control / Segregation of Duties Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 502204 2021-001
    Significant Deficiency Repeat
  • 502205 2021-002
    Material Weakness Repeat
  • 502206 2021-005
    Significant Deficiency Repeat
  • 502207 2021-001
    Significant Deficiency Repeat
  • 502208 2021-002
    Material Weakness Repeat
  • 502209 2021-003
    Material Weakness Repeat
  • 502210 2021-005
    Significant Deficiency Repeat
  • 502211 2021-001
    Significant Deficiency Repeat
  • 502212 2021-002
    Material Weakness Repeat
  • 502213 2021-005
    Significant Deficiency Repeat
  • 502214 2021-001
    Significant Deficiency Repeat
  • 502215 2021-002
    Material Weakness Repeat
  • 502216 2021-004
    Significant Deficiency Repeat
  • 502217 2021-005
    Significant Deficiency Repeat
  • 502218 2021-001
    Significant Deficiency Repeat
  • 502219 2021-002
    Material Weakness Repeat
  • 502220 2021-005
    Significant Deficiency Repeat
  • 502221 2021-006
    Significant Deficiency Repeat
  • 502222 2021-001
    Significant Deficiency Repeat
  • 502223 2021-002
    Material Weakness Repeat
  • 502224 2021-005
    Significant Deficiency Repeat
  • 502225 2021-001
    Significant Deficiency Repeat
  • 502226 2021-002
    Material Weakness Repeat
  • 502227 2021-004
    Significant Deficiency Repeat
  • 502228 2021-005
    Significant Deficiency Repeat
  • 502229 2021-001
    Significant Deficiency Repeat
  • 502230 2021-002
    Material Weakness Repeat
  • 502231 2021-005
    Significant Deficiency Repeat
  • 502232 2021-001
    Significant Deficiency Repeat
  • 502234 2021-003
    Material Weakness Repeat
  • 502235 2021-005
    Significant Deficiency Repeat
  • 502236 2021-001
    Significant Deficiency Repeat
  • 502237 2021-002
    Material Weakness Repeat
  • 502238 2021-005
    Significant Deficiency Repeat
  • 502239 2021-001
    Significant Deficiency Repeat
  • 502240 2021-002
    Material Weakness Repeat
  • 502241 2021-005
    Significant Deficiency Repeat
  • 502242 2021-001
    Significant Deficiency Repeat
  • 502243 2021-002
    Material Weakness Repeat
  • 502244 2021-005
    Significant Deficiency Repeat
  • 502245 2021-001
    Significant Deficiency Repeat
  • 502246 2021-002
    Material Weakness Repeat
  • 502247 2021-005
    Significant Deficiency Repeat
  • 502248 2021-001
    Significant Deficiency Repeat
  • 502249 2021-002
    Material Weakness Repeat
  • 502250 2021-005
    Significant Deficiency Repeat
  • 502251 2021-001
    Significant Deficiency Repeat
  • 502252 2021-002
    Material Weakness Repeat
  • 502253 2021-005
    Significant Deficiency Repeat
  • 502254 2021-001
    Significant Deficiency Repeat
  • 502255 2021-002
    Material Weakness Repeat
  • 502256 2021-005
    Significant Deficiency Repeat
  • 502257 2021-001
    Significant Deficiency Repeat
  • 502258 2021-002
    Material Weakness Repeat
  • 502259 2021-005
    Significant Deficiency Repeat
  • 1078646 2021-001
    Significant Deficiency Repeat
  • 1078647 2021-002
    Material Weakness Repeat
  • 1078648 2021-005
    Significant Deficiency Repeat
  • 1078649 2021-001
    Significant Deficiency Repeat
  • 1078650 2021-002
    Material Weakness Repeat
  • 1078651 2021-003
    Material Weakness Repeat
  • 1078652 2021-005
    Significant Deficiency Repeat
  • 1078653 2021-001
    Significant Deficiency Repeat
  • 1078654 2021-002
    Material Weakness Repeat
  • 1078655 2021-005
    Significant Deficiency Repeat
  • 1078656 2021-001
    Significant Deficiency Repeat
  • 1078657 2021-002
    Material Weakness Repeat
  • 1078658 2021-004
    Significant Deficiency Repeat
  • 1078659 2021-005
    Significant Deficiency Repeat
  • 1078660 2021-001
    Significant Deficiency Repeat
  • 1078661 2021-002
    Material Weakness Repeat
  • 1078662 2021-005
    Significant Deficiency Repeat
  • 1078663 2021-006
    Significant Deficiency Repeat
  • 1078664 2021-001
    Significant Deficiency Repeat
  • 1078665 2021-002
    Material Weakness Repeat
  • 1078666 2021-005
    Significant Deficiency Repeat
  • 1078667 2021-001
    Significant Deficiency Repeat
  • 1078668 2021-002
    Material Weakness Repeat
  • 1078669 2021-004
    Significant Deficiency Repeat
  • 1078670 2021-005
    Significant Deficiency Repeat
  • 1078671 2021-001
    Significant Deficiency Repeat
  • 1078672 2021-002
    Material Weakness Repeat
  • 1078673 2021-005
    Significant Deficiency Repeat
  • 1078674 2021-001
    Significant Deficiency Repeat
  • 1078675 2021-002
    Material Weakness Repeat
  • 1078676 2021-003
    Material Weakness Repeat
  • 1078677 2021-005
    Significant Deficiency Repeat
  • 1078678 2021-001
    Significant Deficiency Repeat
  • 1078679 2021-002
    Material Weakness Repeat
  • 1078680 2021-005
    Significant Deficiency Repeat
  • 1078681 2021-001
    Significant Deficiency Repeat
  • 1078682 2021-002
    Material Weakness Repeat
  • 1078683 2021-005
    Significant Deficiency Repeat
  • 1078684 2021-001
    Significant Deficiency Repeat
  • 1078685 2021-002
    Material Weakness Repeat
  • 1078686 2021-005
    Significant Deficiency Repeat
  • 1078687 2021-001
    Significant Deficiency Repeat
  • 1078688 2021-002
    Material Weakness Repeat
  • 1078689 2021-005
    Significant Deficiency Repeat
  • 1078690 2021-001
    Significant Deficiency Repeat
  • 1078691 2021-002
    Material Weakness Repeat
  • 1078692 2021-005
    Significant Deficiency Repeat
  • 1078693 2021-001
    Significant Deficiency Repeat
  • 1078694 2021-002
    Material Weakness Repeat
  • 1078695 2021-005
    Significant Deficiency Repeat
  • 1078696 2021-001
    Significant Deficiency Repeat
  • 1078697 2021-002
    Material Weakness Repeat
  • 1078698 2021-005
    Significant Deficiency Repeat
  • 1078699 2021-001
    Significant Deficiency Repeat
  • 1078700 2021-002
    Material Weakness Repeat
  • 1078701 2021-005
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
43.001 Science $41,592
47.049 Mathematical and Physical Sciences $23,501
47.076 Education and Human Resources $20,896