Finding 525265 (2023-004)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2025-03-03

AI Summary

  • Core Issue: Inaccurate documentation was used for calculating expenditures related to the SLFRF ARPA Scholarship program.
  • Impacted Requirements: Internal controls were insufficient to ensure that reports on expenses were complete, accurate, and compliant.
  • Recommended Follow-Up: Implement stronger controls to verify data accuracy in reporting to prevent future discrepancies.

Finding Text

Criteria or Specific Requirement – A portion of the SLFRF ARPA Scholarship program was to provide funding for CCAP losses incurred for Boulder County Children. Management is required to ensure that there are sufficient internal controls in place over expenses charged to the SLFRF program. This includes internal controls that ensure that reports used in determining expenditures are complete, accurate, and compliant with the program. Conditions – Documentation used for calculating expenditures was not accurate. Context – During our testing of allowable costs and activities, we reviewed reports used for CCCAP loss calculations. We selected six of nineteen locations to verify the Boulder County resident percentage used for allowable expenditures. The six locations accounted for 82% of all students. We noted the number of students did not agree between the reports used for the calculations and the support provided. However, the errors resulted n more expenses being allowable; as a result, there are no questionable costs. Cause – Controls were not in place to ensure correct data was gathered to provide for accurate reporting. Effect – Reports submitted were inaccurate.

Corrective Action Plan

Recommendation – We recommend that management ensure that supporting reports are current and accurate for expenses charged to federal programs to ensure future compliance with applicable federal cost rules. Views of Responsible Officials and Planned Corrective Actions – Reports will be reviewed and retained to support expenses in the future.

Categories

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 525262 2023-001
    Material Weakness
  • 525263 2023-002
    Material Weakness Repeat
  • 525264 2023-003
    Material Weakness Repeat
  • 525266 2023-005
    Material Weakness
  • 525267 2023-006
    Material Weakness
  • 525268 2023-007
    Material Weakness
  • 1101704 2023-001
    Material Weakness
  • 1101705 2023-002
    Material Weakness Repeat
  • 1101706 2023-003
    Material Weakness Repeat
  • 1101707 2023-004
    Material Weakness
  • 1101708 2023-005
    Material Weakness
  • 1101709 2023-006
    Material Weakness
  • 1101710 2023-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $993,207
93.575 Child Care and Development Block Grant $541,441
84.425D Education Stabilization Fund $114,776