Finding 529978 (2022-004)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2025-03-25
Audit: 348068
Organization: Fairbanks Rescue Mission, Inc. (AK)

AI Summary

  • Core Issue: There is a material weakness in internal controls over financial reporting due to inadequate documentation of costs charged to federal programs.
  • Impacted Requirements: This finding violates Title 2 U.S. Code Part 200.403(g), which mandates proper documentation for allowable costs.
  • Recommended Follow-Up: The Mission should review and revise its financial policies to ensure compliance with Uniform Guidance, focusing on documentation, segregation of duties, and audit trails.

Finding Text

2022-004 Material Weakness in Internal Control over Financial Reporting and Noncompliance – Allowable Costs/Cost Principles - Repeat Criteria: Title 2 U.S. Code Part 200.403(g) requires that for costs charged to a federal program to be allowable, they must be adequately documented. Condition: A non-payroll cost charged to the federal major program was not documented in accordance with the Mission’s financial policies and procedures. Cause: The Mission does not have a procedure in place to monitor all supporting documents are properly secured and documented making it available for retrieval. Effect or potential effect: Not following established financial policies and procedures increases the risk that internal control failures, questioned costs and noncompliance could arise in the future over federal programs. Recommendation: We recommend the Mission reviews its financial policies and procedures and implement and/or revise accordingly to ensure they conform to both Uniform Guidance and internal policies and procedures to satisfy adequate internal control design to account for proper segregation of duties, records retention, and audit trail. Views of Responsible Officials: See Corrective Action Plan Identification of repeat finding: 2021-004 See Finding 2022-004 above - Repeat Identification of federal program: 64.033 VA Support Services for Veteran Families Program Award 20-AK-152 Department of Veterans Affairs Questioned Costs: Known $0 Likely $0 Context: During our sampling testing for allowable costs, we identified the following: - 1 out of 65 transactions that did not have an audit trail of approval process for payments to vendors in the form of a purchase order form signed by the Executive Director or Office Manager as required by the Missions financial policies and procedures. Identification of Repeat Finding: 2021-005

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Procurement, Suspension & Debarment Material Weakness Reporting

Other Findings in this Audit

  • 529977 2022-004
    Material Weakness Repeat
  • 529979 2022-005
    Material Weakness Repeat
  • 529980 2022-005
    Material Weakness Repeat
  • 1106419 2022-004
    Material Weakness Repeat
  • 1106420 2022-004
    Material Weakness Repeat
  • 1106421 2022-005
    Material Weakness Repeat
  • 1106422 2022-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
64.033 Va Supportive Services for Veteran Families Program $585,584
64.024 Va Homeless Providers Grant and Per Diem Program $91,282
21.023 Emergency Rental Assistance Program $64,312
14.267 Continuum of Care Program $37,349