FAC Explorer

Finding 502318 (2022-002)

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: 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: Provide training for finance staff, segregate payment initiation and authorization, and assign mail handling to an employee outside finance.

Finding Text

Finding 2022-002: 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), 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), 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), 2141745 (5/1/2022 – 4/30/2027), 2212807 (7/1/2022 – 6/30/2026) 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), 80NSSC22K1071 (5/23/2022 – 5/22/2023) 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: 2021-002 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 during March, 2024 The staff will be trained on generating journal entries previously 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

  • 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
  • 502281 2022-003
    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
  • 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