Finding 5496 (2023-002)

Finding 2023-002 Administration for Children and Families Federal Financial Assistance Listing #93.566, 2202SDRCMA, 10/01/2021 – 9/30/2023 Refugee and Entrant Assistance – State Administered Programs Allowable Costs / Costs Principles and Activities Allowed or Unallowed Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. The Organization is required to have procedures in place to assure that federal awards are expended only for allowable costs in accordance with Subpart E – Cost Principles of the Uniform Guidance. Allowable costs are supported by appropriate documentation and correctly charged as to account, amount, and period. Condition: One instance identified in which a family was overpaid for a monthly cash assistance payment. Cause: During the check writing process, the amount was mis-keyed for $688 instead of $668 based upon supporting documentation. Effect: The family was overpaid and the Organization over-charged the federal award. Questioned Costs: $20 Context/Sampling: A nonstatistical sample of 24 non-payroll disbursements out of a total of approximately 471 non-payroll disbursements were tested which accounted for $104,148 out of $598,085 of non-payroll disbursements. Repeat Finding from Prior Year: Yes, prior year finding 2022-002. Recommendation: We recommend management review the process over cash assistance payments to ensure accurate amounts are paid to families. View of Responsible Officials: Management is in agreement.