Finding 542014 (2023-003)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2025-03-31

Audit: 350838

Organization: Institute for Future Intelligence, Inc. (RI)

Auditor: Citrin Cooperman & Company LLP

AI Summary

Core Issue: The Organization mistakenly recorded a past year's subaward expense as a 2023 expense.
Impacted Requirements: This violates 2 CFR §200.332, which mandates accurate financial reporting and invoice cutoff for subawards.
Recommended Follow-Up: Management should review subaward invoices post-year-end to ensure expenses are recorded in the correct period.

Finding Text

Condition: The Organization erroneously recorded a prior year subaward expense as a 2023 subaward expense. This was missed during the Chief Financial Officer's review of subaward invoices and during the Chief Executive Officer's overall review of the Statement of Expenditure of Federal Awards. Criteria: Under 2 CFR §200.332, pass through entities are required to review financial and performance reports of subawardees to ensure accurate reporting and cutoff of invoices related to subawards. Cause: The client does not have sufficient controls in place to ensure accurate reporting and cutoff of invoices related to subawards. Effect: The preliminary Statement of Expenditure of Federal Awards ("SEFA") was understated in the current period. Questioned costs: None. Recommendation: Management should review subaward invoices after year-end to determine proper recording in the proper period to which it relates. Views of responsible officials: Management of the Organization agrees with the finding. Management plans to review and revise existing policies and procedures to ensure accurate recording and proper cutoff of invoices related to subawards.

Corrective Action Plan

Finding 2023-003: Subrecipient Monitoring (Significant Deficiency): The Organization erroneously recorded a prior year subaward expense as a 2023 subaward expense. This was missed during the Chief Financial Officer’s review of subaward invoices and during the Chief Executive Officer’s overall review of the Statement of Expenditure of Federal Awards. Name of Contact Person: Charles Xie, Chief Executive Officer email: charles@intofuture.org Corrective Action Plan: The Organization has a small accounting department, which consists of an outsourced bookkeeper. The bookkeeper works part time and did not timely reconcile certain accounts. The Organization has ensured all reconciliations are being done monthly and are reviewed, and that proper cutoff of invoices is implemented and reviewed at year-end. Anticipated Completion Date: Immediately

Other Findings in this Audit

542011 2023-002

Significant Deficiency Repeat
542012 2023-002

Significant Deficiency Repeat
542013 2023-002

Significant Deficiency Repeat
1118453 2023-002

Significant Deficiency Repeat
1118454 2023-002

Significant Deficiency Repeat
1118455 2023-002

Significant Deficiency Repeat
1118456 2023-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
47.046	Stem Education (formerly Education and Human Resources)	$39,640