Finding Text
2022-02 Reconciliation of Grant Financial Data and Reporting
Federal Agency: U.S. Department of the Treasury
Federal Program Name: Emergency Rental Assistance (ERA) 1 & 2
Assistance Listing Number: 21.023
Federal Award Identification Number: ERA0104 and ERA0113 pass through Marion County
Award Period: 06/30/2022
Type of Finding: Material Weakness in Internal Control over Compliance and Internal Control
Over Financial Reporting
Criteria: Performance Reporting requirements outlined in the ERA program guidance stipulate
that recipients must report accurate data. Reported data should be reconciled with internal
reporting. External tracking systems of grant-related expenditures should be regularly reconciled
to expenditures in the financial accounting system.
Condition: During our audit we found that financial accounting system data did not agree with
the third-party grant tracking system from Capital Access called “CAPGEMS” which was used to
document participant eligibility and payments.
Effect: These inaccuracies caused reported direct costs to be understated and retained contract
administration fees to be over expended by approximately $87,371 which is payable back to
Marion County and additional amounts receivable from Capital Access of approximately
$59,197. We will note that though admin fees were over expended in the contract with the
County, they were not in excess of the federally allowed rates. Additionally, these inaccuracies
caused incorrect reporting in amounts submitted to the County and Department of the Treasury.
Cause: Financial accounting data was not being regularly reconciled to the third-party grant
tracking system CAPGEMS.
Recommendation:
We recommend that United Way:
1. Regularly reconcile grant data with financial accounting data.
2. Update data submitted to the County and Department of the Treasury with current
financial data.
3. Request that the County amend its grant contract with United Way to allow for an
administration fee up to the maximum allowed rates and request additional
reimbursement from the County.
Context: We reconciled the CAPGEMS records to the financial accounting data, this process was
complicated due to different naming conventions and payment amount split outs used in the
financial accounting software versus the CAPGEMS database. We believe through this process
we have arrived at an accurate representation of the actual activity for the program.