FAC Explorer

Finding 569834 (2024-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2025-06-30
Audit: 361104
Organization: California Institute of Environmental Studies (CA)
Auditor: Nelson & Associates CPAS

AI Summary

  • Core Issue: Significant deficiency in internal controls led to the omission of noncash federal assistance from the Schedule of Expenditures of Federal Awards (SEFA).
  • Impacted Requirements: Total federal expenditures were understated, exceeding $750,000, which required a Uniform Guidance (UG) audit that was not performed.
  • Recommended Follow-Up: Ensure accurate reporting of all federal assistance and conduct a UG audit for the prior fiscal year to comply with requirements.

Finding Text

2024-001 - INTERNAL CONTROL OVER COMPLIANCE - SIGNIFICANT DEFICIENCY: During the current audit, we identified that noncash federal assistance provided by the National Park Service (U.S. Department of the Interior) under ALN 15.944 – Natural Resource Stewardship during the prior fiscal year was not included in the Schedule of Expenditures of Federal Awards (SEFA). The omission resulted in total federal expenditures for that year being understated. When the omitted noncash assistance is included, total federal expenditures for the prior year exceed $750,000, thus triggering the requirement for a UG audit. However, the entity did not conduct a UG audit for that year.

Corrective Action Plan

1. Federal grant agreements will be reviewed at inception and during year-end close to assess the presence of noncash assistance. 2. Coordination between program and finance staff will be enhanced to improve federal award documentation and reporting. 3. A SEFA checklist has been adopted to guide year-end reporting and audit requirement determination. 4. Training will be provided to accounting and grants management staff on Uniform Guidance requirements, especially 2 CFR 200.502 and 200.510.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 1146276 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
15.944 Natural Resource Stewardship $860,047
12.005 Conservation and Rehabilitation of Natural Resources on Military Installations $119,269