FAC Explorer

Finding 502281 (2022-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-10-10
Audit: 324376
Organization: American Association of Physics Teachers, Inc. (MD)
Auditor: Gary Staples Accounting LLC

AI Summary

  • Core Issue: There were errors in reconciling year-end schedules for federal grants, leading to overdrawn accounts and misreported liabilities.
  • Impacted Requirements: Noncompliance with 2 CFR 200.508 and 2 CFR 200.510 regarding financial statement preparation and management of federal funds.
  • Recommended Follow-Up: AAPT staff should prepare and review schedules for financial transactions, with oversight from the CFO, to ensure accurate reporting and compliance by 10/15/2024.

Finding Text

Finding 2022-003: Reconciliation of Accounts 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: 1500529 (9/1/2015 – 8/31/2022), 1640791 (9/15/2016 – 8/31/2022) Federal Program: Research and Development Cluster (Mathematical and Physical Sciences) Material Weakness in Internal Control over Compliance, Material Noncompliance Federal Programs: Research and Development Cluster: 47.076 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): According to 2 CFR 200.508 "Auditee Responsibilities" the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 "Financial statements"). Title 2 CFR 200.510 "financial statements" requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee's financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 "Financial management", the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. Condition: The year-end schedules for federal grants receivable, net assets, and for vacation payable were not reconciled and needed to be revised and updated. Cause: Errors in transferring balances between years occurred, which impacted carry-over amounts and the ending balances as of 12/31/2022. Related to vacation payables, the schedule had not been properly adjusted to account for the number of days in the last pay period. Effect or Potential Effect: Three federal grant accounts were overdrawn as of 12/31/2022, creating a liability to the federal government. The related grant receivable and liability balances were not properly stated before adjustment as a result. Questioned Costs: $115,244 in total. Assistance listing number 47.076. Of this amount, $62,403 applies to award ID 1505278, which was closed before 1/1/2022 and did not have expenses or drawdowns in 2022 but by the end of 2018 had $138,034 in federal funding provided to AAPT and $75,631 of reimbursable expenses. AAPT had not refunded the overpayment, such as by applying this $62,403 as a reduction in federal reimbursements drawn during 2022. The remaining amounts of $10,112, $8,307, $33,615, and $807 relate to award IDs 1812860, 1524963, 1500529, and 1640791, respectively, and were calculated in the same manner. The period of performance for award IDs 1812860 and 1524963 ended prior to 1/1/2022. The period of performance for award IDs 1500529 and 1640791 ended on 8/31/2022. Identification as a Repeat Finding, if Applicable: 2021-003 Recommendation: We recommend AAPT staff prepare schedules used to prepare entries into the accounting information system or which the information in the schedules will otherwise be used to initiate financial transactions, and the transactions and schedules be reviewed by a supervisor. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 10/15/2024 Responsible Official: Michael Brosnan, CFO

Categories

Cash Management Material Weakness Period of Performance Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 502266 2022-001
    Significant Deficiency Repeat
  • 502267 2022-002
    Material Weakness Repeat
  • 502268 2022-004
    Significant Deficiency Repeat
  • 502269 2022-005
    Significant Deficiency Repeat
  • 502270 2022-001
    Significant Deficiency Repeat
  • 502271 2022-002
    Material Weakness Repeat
  • 502272 2022-003
    Material Weakness Repeat
  • 502273 2022-004
    Significant Deficiency Repeat
  • 502274 2022-005
    Significant Deficiency Repeat
  • 502275 2022-001
    Significant Deficiency Repeat
  • 502276 2022-002
    Material Weakness Repeat
  • 502277 2022-004
    Significant Deficiency Repeat
  • 502278 2022-005
    Significant Deficiency Repeat
  • 502279 2022-001
    Significant Deficiency Repeat
  • 502280 2022-002
    Material Weakness Repeat
  • 502282 2022-005
    Significant Deficiency Repeat
  • 502283 2022-001
    Significant Deficiency Repeat
  • 502284 2022-002
    Material Weakness Repeat
  • 502285 2022-005
    Significant Deficiency Repeat
  • 502286 2022-001
    Significant Deficiency Repeat
  • 502287 2022-002
    Material Weakness Repeat
  • 502288 2022-004
    Significant Deficiency Repeat
  • 502289 2022-005
    Significant Deficiency Repeat
  • 502290 2022-001
    Significant Deficiency Repeat
  • 502291 2022-002
    Material Weakness Repeat
  • 502292 2022-005
    Significant Deficiency Repeat
  • 502293 2022-001
    Significant Deficiency Repeat
  • 502294 2022-002
    Material Weakness Repeat
  • 502295 2022-005
    Significant Deficiency Repeat
  • 502296 2022-001
    Significant Deficiency Repeat
  • 502297 2022-002
    Material Weakness Repeat
  • 502298 2022-004
    Significant Deficiency Repeat
  • 502299 2022-005
    Significant Deficiency Repeat
  • 502300 2022-001
    Significant Deficiency Repeat
  • 502301 2022-002
    Material Weakness Repeat
  • 502302 2022-005
    Significant Deficiency Repeat
  • 502303 2022-001
    Significant Deficiency Repeat
  • 502304 2022-002
    Material Weakness Repeat
  • 502305 2022-005
    Significant Deficiency Repeat
  • 502306 2022-001
    Significant Deficiency Repeat
  • 502307 2022-002
    Material Weakness Repeat
  • 502308 2022-004
    Significant Deficiency Repeat
  • 502309 2022-005
    Significant Deficiency Repeat
  • 502310 2022-001
    Significant Deficiency Repeat
  • 502311 2022-002
    Material Weakness Repeat
  • 502312 2022-004
    Significant Deficiency Repeat
  • 502313 2022-005
    Significant Deficiency Repeat
  • 502314 2022-001
    Significant Deficiency Repeat
  • 502315 2022-002
    Material Weakness Repeat
  • 502316 2022-005
    Significant Deficiency Repeat
  • 502317 2022-001
    Significant Deficiency Repeat
  • 502318 2022-002
    Material Weakness Repeat
  • 502319 2022-004
    Significant Deficiency Repeat
  • 502320 2022-005
    Significant Deficiency Repeat
  • 502321 2022-001
    Significant Deficiency Repeat
  • 502322 2022-002
    Material Weakness Repeat
  • 502323 2022-005
    Significant Deficiency Repeat
  • 502324 2022-001
    Significant Deficiency Repeat
  • 502325 2022-002
    Material Weakness Repeat
  • 502326 2022-005
    Significant Deficiency Repeat
  • 502327 2022-001
    Significant Deficiency Repeat
  • 502328 2022-002
    Material Weakness Repeat
  • 502329 2022-005
    Significant Deficiency Repeat
  • 502330 2022-001
    Significant Deficiency Repeat
  • 502331 2022-002
    Material Weakness Repeat
  • 502332 2022-005
    Significant Deficiency Repeat
  • 1078708 2022-001
    Significant Deficiency Repeat
  • 1078709 2022-002
    Material Weakness Repeat
  • 1078710 2022-004
    Significant Deficiency Repeat
  • 1078711 2022-005
    Significant Deficiency Repeat
  • 1078712 2022-001
    Significant Deficiency Repeat
  • 1078713 2022-002
    Material Weakness Repeat
  • 1078714 2022-003
    Material Weakness Repeat
  • 1078715 2022-004
    Significant Deficiency Repeat
  • 1078716 2022-005
    Significant Deficiency Repeat
  • 1078717 2022-001
    Significant Deficiency Repeat
  • 1078718 2022-002
    Material Weakness Repeat
  • 1078719 2022-004
    Significant Deficiency Repeat
  • 1078720 2022-005
    Significant Deficiency Repeat
  • 1078721 2022-001
    Significant Deficiency Repeat
  • 1078722 2022-002
    Material Weakness Repeat
  • 1078723 2022-003
    Material Weakness Repeat
  • 1078724 2022-005
    Significant Deficiency Repeat
  • 1078725 2022-001
    Significant Deficiency Repeat
  • 1078726 2022-002
    Material Weakness Repeat
  • 1078727 2022-005
    Significant Deficiency Repeat
  • 1078728 2022-001
    Significant Deficiency Repeat
  • 1078729 2022-002
    Material Weakness Repeat
  • 1078730 2022-004
    Significant Deficiency Repeat
  • 1078731 2022-005
    Significant Deficiency Repeat
  • 1078732 2022-001
    Significant Deficiency Repeat
  • 1078733 2022-002
    Material Weakness Repeat
  • 1078734 2022-005
    Significant Deficiency Repeat
  • 1078735 2022-001
    Significant Deficiency Repeat
  • 1078736 2022-002
    Material Weakness Repeat
  • 1078737 2022-005
    Significant Deficiency Repeat
  • 1078738 2022-001
    Significant Deficiency Repeat
  • 1078739 2022-002
    Material Weakness Repeat
  • 1078740 2022-004
    Significant Deficiency Repeat
  • 1078741 2022-005
    Significant Deficiency Repeat
  • 1078742 2022-001
    Significant Deficiency Repeat
  • 1078743 2022-002
    Material Weakness Repeat
  • 1078744 2022-005
    Significant Deficiency Repeat
  • 1078745 2022-001
    Significant Deficiency Repeat
  • 1078746 2022-002
    Material Weakness Repeat
  • 1078747 2022-005
    Significant Deficiency Repeat
  • 1078748 2022-001
    Significant Deficiency Repeat
  • 1078749 2022-002
    Material Weakness Repeat
  • 1078750 2022-004
    Significant Deficiency Repeat
  • 1078751 2022-005
    Significant Deficiency Repeat
  • 1078752 2022-001
    Significant Deficiency Repeat
  • 1078753 2022-002
    Material Weakness Repeat
  • 1078754 2022-004
    Significant Deficiency Repeat
  • 1078755 2022-005
    Significant Deficiency Repeat
  • 1078756 2022-001
    Significant Deficiency Repeat
  • 1078757 2022-002
    Material Weakness Repeat
  • 1078758 2022-005
    Significant Deficiency Repeat
  • 1078759 2022-001
    Significant Deficiency Repeat
  • 1078760 2022-002
    Material Weakness Repeat
  • 1078761 2022-004
    Significant Deficiency Repeat
  • 1078762 2022-005
    Significant Deficiency Repeat
  • 1078763 2022-001
    Significant Deficiency Repeat
  • 1078764 2022-002
    Material Weakness Repeat
  • 1078765 2022-005
    Significant Deficiency Repeat
  • 1078766 2022-001
    Significant Deficiency Repeat
  • 1078767 2022-002
    Material Weakness Repeat
  • 1078768 2022-005
    Significant Deficiency Repeat
  • 1078769 2022-001
    Significant Deficiency Repeat
  • 1078770 2022-002
    Material Weakness Repeat
  • 1078771 2022-005
    Significant Deficiency Repeat
  • 1078772 2022-001
    Significant Deficiency Repeat
  • 1078773 2022-002
    Material Weakness Repeat
  • 1078774 2022-005
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
47.076 Education and Human Resources $132,634
43.001 Science $31,610
47.049 Mathematical and Physical Sciences $26,303