Finding 607631 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: Incorrect reimbursement calculations led to claims payments that included unallowable costs.
  • Impacted Requirements: Federal award program guidelines were not followed, resulting in questioned costs of $148,871 and potential additional costs of $1,092,230.
  • Recommended Follow-Up: Implement and monitor new policies to ensure proper documentation and accurate calculations for all disbursements.

Finding Text

2022-003 ? SIGNIFICANT DEFICIENCY ? Claims Payments Made Based on Incorrect Calculations of Amounts to be Reimbursed (Continued) Condition ? For 3 of 60 disbursements sampled, reimbursed claims amounts included un-allowable costs due to the reimbursement calculations being performed incorrectly in the determination of the appropriate reimbursement amount. Cause ? As a result of the Foundation?s reliance solely on certifications received, amounts were not appropriately disbursed under the federal award program. Effect ? Claims payments included amounts that were not chargeable or assignable to the federal award in accordance with relative benefits received. Questioned Costs ? $148,871 known questioned costs (total amounts paid based on incorrect reimbursement calculations), $1,092,230 likely questioned costs ? amount extrapolated to entire population based on % of known questioned costs. Auditors? Recommendation ? Policies and procedures should be designed, implemented, and monitored which ensure that detailed supporting documentation is obtained and reviewed for all disbursements in accordance with federal award requirements. In addition, all calculations of amounts to be reimbursed should be appropriately recalculated to ensure the proper amount is included in the claims payments. Management response and current status ? See management corrective action plan

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Significant Deficiency

Other Findings in this Audit

  • 31187 2022-001
    Significant Deficiency
  • 31188 2022-002
    Significant Deficiency
  • 31189 2022-003
    Significant Deficiency
  • 607629 2022-001
    Significant Deficiency
  • 607630 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $79.94M