Finding 508339 (2021-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2021
Accepted
2024-11-19
Audit: 328912
Organization: Elle Foundation (LA)

AI Summary

  • Core Issue: 12 out of 30 sampled transactions, totaling $38,840, lacked proper documentation and were misrecorded.
  • Impacted Requirements: Federal regulations mandate that grant recipients maintain adequate records for all costs funded by federal grants.
  • Recommended Follow-Up: Management should enhance record retention procedures to ensure all grant expenditures are properly documented.

Finding Text

CRITERIA: Federal regulations require the grant recipient to maintain appropriate records and source documentation to support all costs paid with federal grant funding, to ensure adequate. CONDITION: We examined a sample of 30 grant expenditures for the SSVF grant program and noted that 12 transactions totaling $38,840 were incurred that did not have proper supporting documentation. We also noted the transactions were not accurately recorded to the proper grant accounts. CAUSE: The Foundation's record retention administrative procedures were not adequate. EFFECT: We were unable to determine if the grant costs totaling $38,840 were allowable costs for the SSVF grant program. QUESTIONED COSTS: $38,840 RECOMMENDATION: We recommend that management implement proper record retention procedures to assure all grant expenditures are supported by adequate documentation. MANAGEMENT'S RESPONSE: See management's corrective action plan on pages 31-32.

Corrective Action Plan

Corrective Action Planned: SSVF Policies and Procedure Guide will be updated at the agency CARF retreat to reflect the process of transactions related to SSVF and updated retention polices and documentation requirements. Contact Person: Cassandra Montgomery, Executive Director Anticipated Completion Date: Completed at the Agency CARF retreat during June 1-3, 2023.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 508340 2021-004
    - Repeat
  • 508341 2021-005
    Significant Deficiency Repeat
  • 508342 2021-006
    Significant Deficiency Repeat
  • 1084781 2021-003
    Material Weakness Repeat
  • 1084782 2021-004
    - Repeat
  • 1084783 2021-005
    Significant Deficiency Repeat
  • 1084784 2021-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
64.033 Va Supportive Services for Veteran Families Program $1.07M
93.623 Basic Center Grant $123,232
17.805 Homeless Veterans� Reintegration Program $91,465