Finding 60717 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-15
Audit: 49331
Organization: Metro Meals on Wheels, Inc. (MN)
Auditor: Abdo

AI Summary

  • Core Issue: Reports sent to MMOW’s funder did not match the internal reports, indicating a lack of proper checks.
  • Impacted Requirements: Internal controls over reporting compliance were inadequate, increasing the risk of errors and fraud.
  • Recommended Follow-Up: The Executive Director should review and sign off on the reports, ensuring discrepancies are documented and reconciled.

Finding Text

Condition: The Program Manager fills out required monthly and quarterly reports and sends them to MMOW?s funder. In order to control that these reports are correct, the Program Manager sends a report to accounting that contains the monthly amounts requested from MMOW?s funder. We found in the course of the audit that this report did not match the monthly or quarterly reports sent to MMOW?s funder. Criteria: Metro Meals on Wheels is required to have functioning internal controls over the reporting compliance requirement. Controls must be designed to adequately reduce fraud and error and also must function as designed. Cause: No individual was checking that these reports matched the reports sent to MMOW?s funder. Effect: The effect is that money received from MMOW?s funder was different than what was expected by accounting and the Executive Director. The control was not strong enough to catch errors in reporting. Recommendation: We recommend that the Executive Director review the report that the Program Manager sends to himself and accounting and compare it with the report the Program Manager sends to MMOW?s funder. We recommend that this report is reviewed and signed-off on and kept in documented files. Any inconsistencies should be noted by the Executive Director, reviewed, and reconciled. If the difference can be reconciled it should be noted.

Corrective Action Plan

2022-003 - Aging Cluster - Significant Deficiency in Internal Controls over Compliance Recommendation: We recommend that the Executive Director review the report that the Program Manager sends to himself and accounting and compare it with the report the Program Manager sends to MMOW's funder. We recommend that this report is reviewed and signed-off on and kept in documented files. Any inconsistencies should be noted by the Executive Director, reviewed, and reconciled. If the difference can be reconciled it should be noted. Planned Action The Executive Director will continue to review the reports that the Program Manager sends to accounting and Trellis for reimbursement of services. Once payment is made, the Executive Director will reconcile the payment with the submitted reports prior to reimbursing the subrecipients. Any discrepancies will be documented and resolved prior to issuing payments to subrecipients.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 60715 2022-001
    Material Weakness
  • 60716 2022-002
    Material Weakness
  • 60718 2022-004
    Significant Deficiency
  • 637157 2022-001
    Material Weakness
  • 637158 2022-002
    Material Weakness
  • 637159 2022-003
    Significant Deficiency
  • 637160 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1.99M
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $19,468