Finding 517861 (2023-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2025-01-06

AI Summary

  • Core Issue: Federal expenditures for ALN 17.261 were missing from the original schedule of expenditures.
  • Impacted Requirements: The Organization failed to comply with the Code of Federal Regulations regarding reporting federal awards.
  • Recommended Follow-Up: Implement controls to ensure all federal expenditures are accurately reported and supported by accounting records by November 2024.

Finding Text

Finding 2023-001 - Significant Deficiency Criteria: According to the Code of Federal Regulations, the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee’s financial statements which must include the total federal awards expended. Condition: Federal expenditures for ALN 17.261 were not reported on the original schedule of expenditures of federal awards provided to us. Context: The Organization received correspondence from the grantor of ALN 17.261 that the federal expenditures related to their award were not recorded on the single audit report issued on June 27, 2024. Effect: Improperly reported amounts of federal expenditures on the schedule of expenditures of federal awards required us to adjust the schedule to reflect actual federal expenditures. Cause: The Organization did not have proper processes and related controls in place to ensure that all amounts to be reported on the schedule of expenditures of federal awards were properly reported and supported by the underlying accounting records. Recommendation: The Organization should put in place controls that would ensure that all expenditures related to federal programs that are allowable and supportable are included on the schedule of expenditures of federal awards. View Of Responsible Officials (Unaudited): See the corrective action plan provided by management included with this report. Anticipated Completion Date: November 2024 Responsible Official: Gina Knapp, Vice President of Finance

Corrective Action Plan

We agree with the auditor’s recommendation and will address the improvement of this process. At year-end a complete review of all grant receivables and deferrals will be conducted by the accounting department to ensure that grants are reported on the schedule of expenditures and federal awards when proper expenses are incurred.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 1094303 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $122,997
84.287 Twenty-First Century Community Learning Centers $108,133
17.261 Wia Pilots, Demonstrations, and Research Projects $75,326
14.218 Community Development Block Grants/entitlement Grants $57,135