Finding 558082 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-04-29
Audit: 354940
Organization: Empower Evergreen INC (KS)

AI Summary

  • Core Issue: Lack of segregation of duties in the reimbursement submission process.
  • Impacted Requirements: Potential non-compliance with federal award regulations and inaccurate financial reporting.
  • Recommended Follow-Up: Implement a process with at least two people involved in preparing and approving submissions, ensuring proper documentation.

Finding Text

U.S. Department of Treasury No. 21.027 – Coronavirus State and Local Fiscal Recovery Funds Grant Period Year Ended December 31, 2024 Criteria: Submissions to the City lacked segregation of duties. Condition and Context: For four out of four reimbursement request forms tested, disbursements were for allowable costs and related activities in the applicable period of performance. When reimbursement submissions were made to the City, one person prepared, approved, and sent the submission on each of the four request selected for testing. Effect: Expenses requested for reimbursement may not be in compliance with the federal award and financial reporting may be inaccurate. Cause: There was no segregation of duties over reporting, including the reimbursement request forms. Recommendation: At least two people should be a part of the reporting and submission process. One to prepare the documentation and one to approve it. The approval should be documented and maintained. Management Response: Processes are being implemented to ensure appropriate review process and document retention, see corrective action plan.

Corrective Action Plan

U.S. Department of Treasury No. 21.027 – Coronavirus State and Local Fiscal Recovery Funds Grant Period Year Ended December 31, 2024 Corrective Action Plan: In order to ensure future submissions are containing segregation of duties, the organization will ensure there are two people a part of the reporting and submission process. One person will fill out the reporting information and another person will sign off and submit the information to ensure two people are part of the process. Responsible for this plan: Ariel Rodriguez, Executive Director Implementation Timeline: Immediately as of April 22nd, 2025

Categories

Allowable Costs / Cost Principles Cash Management Period of Performance Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1134524 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $832,800