Finding 59908 (2022-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-17

AI Summary

  • Core Issue: Reports submitted to the grantor lacked a review by a separate employee before submission.
  • Impacted Requirements: Internal controls are not effective, leading to potential noncompliance with federal award requirements.
  • Recommended Follow-Up: Management should implement a secondary review process for all reports to ensure accuracy and compliance.

Finding Text

Condition: During our audit procedures over compliance requirements, reports submitted to the grantor were not reviewed by an employee separate from the preparer before being submitted. Criteria: Effective internal controls should be established to prevent or detect noncompliance with required compliance requirements over federal awards. Cause: Procedures are not currently in place to require an employee, separate from the report preparer, to review required grant reports prior to submission to the grantor. Effect: As a result of the deficiency noted, our audit procedures identified several reports submitted to the grantor during 2022 that were revised after initial submission due to the grantor?s review identifying certain items that required correction. Recommendations: We recommend internal control procedures be reviewed by management and a secondary review of all submitted reports be performed by an employee, separate from the preparer and knowledgeable of compliance requirements, for completeness and accuracy, including comparing to source documentation and any reconciliations between source data and final reporting.

Corrective Action Plan

While this is important to the segregation and performance of internal control duties, the Urban League currently does not have the depth in personnel. Currently the Urban League is planning to expand the Finance Department to include an additional position that will have this responsibility assigned. In the meantime, the Urban League will identify other staff members to participate in this function. The Urban League is currently searching for a Director of Accounting who would have the initial responsibility of providing this service.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 59907 2022-003
    Significant Deficiency
  • 636349 2022-003
    Significant Deficiency
  • 636350 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $675,236
93.667 Social Services Block Grant $71,523
14.218 Community Development Block Grants/entitlement Grants $21,096