Finding Text
Finding 2024 002: Preparation of the Schedule of Expenditures of Federal Awards
Condition: During our audit, Wipfli LLP noted there were certain federal grants received from pass through entities that were inadvertently excluded from the Schedule of Expenditures of Federal Awards.
Criteria: Uniform Guidance (2 CFR Part 200, section 510) states 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.
Cause: The internal controls of People Inc. did not identify all federal awards to be included in the Schedule of Expenditures of Federal Awards prior to the audit.
Effect: As a result of the financial reporting matters identified in the condition paragraph, a significant deficiency exists in People Inc.'s internal control over financial reporting.
Recommendation: We recommend People Inc. continue to implement procedures to provide sufficient internal control over the preparation of the Schedule of Expenditures of Federal Awards.
View of Responsible Officials: PINC management acknowledges the inadvertent exclusion of some funds from the Schedule of Expenditures of Federal Awards due to a CFO transition and outdated accounting system, but emphasizes that no fraud or misuse occurred, with discrepancies promptly resolved, and is actively implementing a new accounting system to ensure future compliance and improve reporting accuracy.