Finding 576070 (2024-002)

Material Weakness

Requirement

Questioned Costs

Year

2024

Accepted

2025-09-10

Audit: 365974

Organization: Along the Way (PA)

Auditor: Cla

AI Summary

Core Issue: There is a significant weakness in internal controls over compliance, leading to improper documentation and approval for federal program expenses.
Impacted Requirements: The organization is not meeting the standards set by 2 CFR Part 200 regarding allowable costs and activities, as well as GAAP compliance.
Recommended Follow-up: Implement stronger procedures for documentation and approval of expenses, and conduct training to ensure all staff understand compliance requirements.

Finding Text

Material Weakness in Internal Control over Compliance and Other Matters Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions. In addition, eligible costs must be determined in accordance with generally accepted accounting principles (GAAP). Condition: During our testing, we noted there was a lack of supporting documentation and/or approval for expenses charged to the federal programs. It was also identified, there were transactions that were incorrectly charged to the program.

Corrective Action Plan

The Organization should review its internal controls and procedures to ensure all supporting documentation for federally funded purchases is retained, and expenditures are appropriately recognized in the correct period. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Organization acknowledges the importance of maintaining complete supporting documentation for all federally funded purchases and ensuring expenditures are recorded in the correct accounting period. During fiscal year 2025, a third-party bill payment system, Bill.com, was implemented. The system stores all invoices, payment confirmations, and documentation of the review and approval process for all expenditures. In addition, going forward, we will conduct quarterly internal reviews of federally funded transactions to ensure compliance with documentation and period recognition standards. Findings will be reported to management and corrective action taken as needed. Name(s) of the contact person(s) responsible for corrective action: Kristina Valdez, Chief Executive Officer Planned completion date for corrective action plan: Planned completion date is June 30, 2025.

Other Findings in this Audit

576071 2024-003

Material Weakness
576072 2024-004

Significant Deficiency
576073 2024-005

Material Weakness
576074 2024-006

Material Weakness
1152512 2024-002

Material Weakness
1152513 2024-003

Material Weakness
1152514 2024-004

Significant Deficiency
1152515 2024-005

Material Weakness
1152516 2024-006

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
21.027	Coronavirus State and Local Fiscal Recovery Funds	$1.46M