Finding 576510 (2023-001)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2023-10-16
Audit: 62

AI Summary

  • Core Issue: Inconsistent documentation of allocation rates for one invoice charged to the grant.
  • Impacted Requirements: Management must review and support system allocations before posting; this was not consistently followed.
  • Recommended Follow-Up: Regular reviews of system allocations by management are essential, ensuring invoice allocations match approved rates.

Finding Text

Criteria: There should be documented support and review of system allocations by an appropriate member of management other than the preparer prior to posting in the accounting system. Condition: There was inconsistent documentation of allocation rates for an invoice charged to the grant. Allocations other than the rates determined by management were used for one out of forty nonpayroll expenses. There were fewer exceptions noted this year than in the prior year. Cause: The Organization’s control policies for review of allocation rates used were not consistently followed. Effect: Invoice allocations may be charged inaccurately to awards and incorrect amounts could be billed. Questioned Costs: None. Recommendation: System allocations should be reviewed regularly by an appropriate member of management and invoice allocations should be consistent with the approved allocations. Management's Response The error identified related to a recurring accounts payable invoice template that is available to, and pending in, future accounting periods and posted monthly.  The recurring invoice template was not updated at the time the distribution code was changed for current allocation rates.  The template has since been updated. We will continue to review the transactions prior to posting in the accounting system to correct any errors.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 67 2023-001
    Significant Deficiency Repeat
  • 68 2023-001
    Significant Deficiency Repeat
  • 576509 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $302,816
10.558 Child and Adult Care Food Program $272,866
93.556 Promoting Safe and Stable Families $117,207
14.231 Emergency Solutions Grant Program $26,924