Finding Text
Finding 2023-007: Significant Deficiency – Reporting
Program: CCDF Cluster
Assistance Listing Number: 93.575; 93.596
Federal Agency: U.S. Department of Health and Human Services
Federal Award Identification Number: N/A
Federal Award Year: June 30, 2021; June 30, 2022; June 30, 2023
Criteria: The Uniform Guidance requires that an entity establish a system of properly-functioning internal controls and that all reporting be submitted accurately and within the time frames prescribed by the grantors.
Condition: Annual ACF-696T reports were not reviewed by someone other than the preparer of the reports.
Questioned Costs: None noted.
Context: There was no documented review or approval for both of the annual ACF-696T reports selected for testing. There were four annual ACF-696T reports required for the current year. The sample was not a statistically valid sample.
Effect: Without an effective review and approval process, the annual ACF-696T reports may contain inaccurate information.
Cause: The Club has not implemented an effective system of internal controls over reporting to ensure that the reports are reviewed and approved by someone within the Club, other than the original preparer of the reports.
Recommendation: It is recommended that the Club implement proper review of the reporting process. Someone other than the preparer of the report should provide adequate review prior to finalizing and submitting the report. This review should include verification that amounts included on the report agree to the underlying general ledger detail as of the report date and verification that the report is submitted by the due date. These procedures should be documented and retained.
Management’s Response: The Club agrees with this finding and will establish a review process in their policy and procedures to ensure that someone other than the person preparing the report reviews the annual ACF-696T reports before submitting them to ensure accurate reporting.