Finding 507976 (2023-003)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2023
Accepted
2024-11-14

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance, particularly regarding time allocation and documentation for grant activities.
  • Impacted Requirements: Noncompliance with 2 CFR 200.430(i) due to inadequate documentation and review of personnel costs, leading to questioned costs of approximately $20,367.
  • Recommended Follow-Up: Implement a formal documentation process for personnel costs by December 31, 2024, including an updated timesheet policy to ensure proper review and allocation.

Finding Text

2023-003 Twenty-First Century Community Learning Centers – Assistance Listing No. 84.287 Material Weakness in Internal Control Over Compliance and Noncompliance – A. Activities Allowed or Unallowed and B. Allowable Costs/Cost Principles Criteria: 2 CFR 200.430(i) indicates costs must be based on records that accurately reflect the work performed to be considered allowable. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition and Context: We selected a sample of 25 instances of time allocated to the grant. We noted 20 instances where time allocated to the grant which lacked formal review of the time allocated. We noted 1 instance of time allocated which lacked adequate documentation resulting in questioned costs of $689. We identified likely questioned costs of $20,367 based on applying an error rate of 4.71% from our sample. Our sample was not statistically valid. Cause and Effect: Policies and procedures were inconsistently applied to personnel costs, resulting in questioned costs. Recommendation: We recommend that the Organization establish a formal documentation process to ensure personnel costs are adequately documented, reviewed, and allocated to the federal award. Views of Responsible Officials and Planned Corrective Action: We agree with the recommendation and plan to have corrective action implemented by December 31, 2024. An updated timesheet policy with the correct wording will be created by the Finance Board Subcommitee at the October meeting, presented to the full Board of Directors at the November Board meeting and voted on at the December 2024 Board meeting.

Corrective Action Plan

2023-003 Twenty-First Century Community Learning Centers - Assistance Listing No. 84.287 Material Weakness in Internal Control Over Compliance and Noncompliance - A. Activities Allowed or Unallowed and B. Allowable Costs/Cost Principles Recommendation: The Auditor recommends that the Organization establish a formal documentation process to ensure personnel costs are adequately reviewed and allocated to the federal award. Planned Corrective Action: We agree with the recommendation and plan to have the corrective action implemented by December 31, 2024. An updated timesheet policy with the correct wording will be created by the Finance Board Subcommittee at the October meeting, presented to the full Board of Directors at the November Board meeting and voted on at the December 2024 Board meeting.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 507974 2023-001
    Significant Deficiency
  • 507975 2023-002
    Significant Deficiency
  • 1084416 2023-001
    Significant Deficiency
  • 1084417 2023-002
    Significant Deficiency
  • 1084418 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.287 Twenty-First Century Community Learning Centers $542,440
84.425U Covid-19 - Education Stabilization Fund $315,000
10.558 Child and Adult Care Food Program $203,300
10.559 Summer Food Service Program for Children $74,678
16.726 Juvenile Mentoring Program $25,537