Finding Text
Corporation for National and Community Service
Foster Grandparent/Senior Companion Cluster – Assistance Listing #94.011, #94.016
#2023-002 – Significant Deficiency: Grant and Contract Management
Compliance Finding: Adherence to Administrative Policies Requirements of Uniform Guidance
This is a partial repeat of prior year finding #2022-002.
Conditions and Criteria:
• Policies associated with Financial Management and Cash Management as they pertain to the management of federal awards were in need of enhancement to meet the administrative requirements of Uniform Guidance at the start of the year under audit. Policies were put into place in February and September 2023.
• Once these policies were established, they were not being followed, resulting in the delayed preparation of Schedule of Expenditures of Federal Awards. Certain balances were not reconciled to supporting documentation.
Cause/Context:
• Catholic Charities West Michigan had general policies and procedures that are applicable to federal awards. However, there are additional unique policy requirements related to Financial Management and Cash Management that are key to the Organization’s federal programs that were missing from the policies in place at the start of the year under audit.
• Polices were adopted in February and September 2023. However, as of September 30, 2023, these policies were not being followed. Catholic Charities relies on information provided by passthrough agencies in the preparation of the SEFA. Necessary information was not received from one such agency until February 2024. Catholic Charities did not reconcile this information to documentation and the general ledger. Unreconciled differences were identified during the audit and required an adjustment to the federal expenditures reported on the SEFA.
Recommendations: We recommend that financial management policies be followed to ensure that the SEFA is prepared timely and reconciled against the general ledger and other supporting documentation to ensure accuracy.
Views of Responsible Officials and Planned Corrective Actions:
Modifications of the Administrative Financial Management and Cash Management policies will be made to further address concerns identified in the Single Audit. In addition, the reconciliation process will be reviewed and improved to assure timely preparation of the SEFA. CCWM will reconcile federal programs to the passthrough agencies 9 months into the fiscal year at a minimum as part of the preparation of the SEFA report.