Finding 50978 (2022-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 45124
Organization: The Montessori Network (IL)
Auditor: Porte Brown LLC

AI Summary

  • Core Issue: Missing expense support items during the audit indicate inadequate record-keeping.
  • Impacted Requirements: The organization must maintain records to support reimbursement requests as a federal award recipient.
  • Recommended Follow-Up: Implement procedures for reconciling reimbursement requests with supporting documents and provide training for staff on these new processes.

Finding Text

Condition : During the audit, we noted several instances where expense support items were not available for review/unable to be located. Criteria : The organization is required to maintain records to support the amounts requested for reimbursement as a federal award recipient. Cause : Management's internal controls lack a requirement for reconciling submitted reimbursement requests to the related support retained. Effect : As a federal award recipient, there is a possibility that an incorrect amount could be requested for reimbursement from a funding source. Recomendation : To prevent this from happening, it is recommended that procedures be implemented requiring the reconciliation of submitted reimbursement requests to the related support (such as bills, invoices, etc.) retained. Views of Responsible Officials and Planned Corrective Actions : Management will develop written procedures outlining the steps required to reconcile submitted reimbursement requests to related support retained, such as bills, invoices, receipts, etc. The procedures will include a review and approval process to ensure compliance with federal and other program regulations. All staff members and contractors responsible for preparing and submitting reimbursement requests will receive training on the new procedures. This will include instruction on the importance of reconciling reimbursement requests to supporting documentation. Management will assign a responsible staff member to regularly monitor the reimbursement request process to ensure compliance with established procedures. This individual will be responsible for reviewing a sample of reimbursement requests each month to ensure they are accurate and properly supported. Management will regularly review and evaluate the effectiveness of the new procedures and make necessary adjustments as needed.

Categories

Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 50977 2022-002
    Significant Deficiency
  • 50979 2022-001
    Significant Deficiency Repeat
  • 50980 2022-001
    Significant Deficiency Repeat
  • 627419 2022-002
    Significant Deficiency
  • 627420 2022-002
    Significant Deficiency
  • 627421 2022-001
    Significant Deficiency Repeat
  • 627422 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $779,788
84.425 Education Stabilization Fund $320,197
84.010 Title I Grants to Local Educational Agencies $207,546
84.367 Improving Teacher Quality State Grants $7,500
84.424 Student Support and Academic Enrichment Program $3,214