Finding 588705 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-13
Audit: 16547
Organization: Epilepsy Foundation of America (MD)

AI Summary

  • Core Issue: There is a material weakness in reporting due to missing documentation of financial and progress report reviews.
  • Impacted Requirements: The Uniform Guidance mandates internal controls to ensure compliance, which were not adequately followed.
  • Recommended Follow-Up: Management should create and implement procedures to retain evidence of report reviews and approvals.

Finding Text

Finding 2022-002: Material Weakness over Reporting - Review of Required Financial and Progress Reports Information on the Federal Program: Department of Human and Health - Center for Disease Control: Improving Epilepsy Programs, Services and Outcomes Through Partnerships, CFDA 93.850 Criteria: The Uniform Guidance requires organizations to establish internal controls to detect potential noncompliance. Condition: Management has an established control in place in that the VP of Finance reviews the financial and progress reports prior to submission, but did not retain evidence of this review occurring during the year. Cause: Due to a lack of policies and procedures regarding retention of review documentation and lack of awareness of the requirement. Effect: Non-compliance with adequate review over required financial and progress reports. Questioned Costs: There were no material questioned costs identified. Context: For all reports chosen for testing in 2022, which included two quarterly FFRs (Federal Financial Report), an annual FFR, and an annual performance progress report, no evidence of approval was retained. Repeat Finding: No. Recommendation: We recommend that management establish procedures to document the review and approval performed over the required reports.

Categories

Reporting

Other Findings in this Audit

  • 12263 2022-002
    Material Weakness
  • 12264 2022-003
    -
  • 12265 2022-004
    Material Weakness
  • 12266 2022-005
    Material Weakness
  • 588706 2022-003
    -
  • 588707 2022-004
    Material Weakness
  • 588708 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.850 Improving Epilepsy Programs, Services, and Outcomes Through National Partnerships $3.80M