Finding 610635 (2022-002)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2022-11-15

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance, specifically regarding the review and approval of federal time trackers before cost allocations.
  • Impacted Requirements: The organization failed to ensure that federal awards were only charged for allowable costs as per federal guidelines, risking incorrect cost allocations.
  • Recommended Follow-Up: Management should enhance the approval process for federal time trackers to ensure timely review before expense allocations.

Finding Text

Finding 2022-002 Administration for Children and Families Federal Assistance Listing/CFDA #93.566, 2001SDRSOC, 10/01/2019 ? 9/30/2021 Federal Assistance Listing/CFDA #93.566, 2101SDRSSS, 10/01/2020 ? 9/30/2023 Refugee and Entrant Assistance ? State Administered Programs Allowable Costs / Costs Principles and Activities Allowed or Unallowed Significant Deficiency in Internal Control over Compliance Criteria: The Organization is required to have procedures in place to assure that federal awards are expended only for allowable costs in accordance with Subpart E ? Cost Principles of the Uniform Guidance. Allowable costs are supported by appropriate documentation and correctly charged as to account, amount, and period. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Two instances were identified in which the manual federal time tracker, tracks federal and non-federal hours for employees, used to allocate employee?s time across federal awards, was not reviewed and approved prior to completion of monthly direct and indirect cost allocations based on staff time by federal award. Cause: There was a lapse in oversight of the internal control process ensuring federal time trackers were reviewed and approved prior to preparation of monthly direct and indirect cost allocation. Federal time tracker was not reviewed and approved by the employee supervisor in a timely manner. Effect: Lack of compliance with designed internal controls over review of federal time trackers could result in the Organization charging costs at an incorrect allocated rate to the federal award. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 30 payroll disbursements out of a total of approximately 1,286 salary disbursements were tested which accounted for $17,635 out of $407,446 of salary disbursements. In addition, a nonstatistical sample of 4 employee benefit disbursements out of a total of approximately 4,796 employee benefit disbursements were tested which accounts for $29 out of $78,993 of employee benefit disbursements. Repeat Finding from Prior Year: Yes, prior year finding 2021-002 Recommendation: We recommend that management review the process over approving federal time trackers to ensure staff time by grant is reviewed prior to preparation of direct and indirect allocations of expenses. View of Responsible Officials: Management is in agreement.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 34193 2022-002
    Significant Deficiency Repeat
  • 34194 2022-003
    Material Weakness Repeat
  • 34195 2022-004
    Significant Deficiency Repeat
  • 34196 2022-005
    Significant Deficiency
  • 610636 2022-003
    Material Weakness Repeat
  • 610637 2022-004
    Significant Deficiency Repeat
  • 610638 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $981,248
10.766 Community Facilities Loans and Grants $875,263
93.566 Refugee and Entrant Assistance_state Administered Programs $872,569
21.019 Coronavirus Relief Fund $414,737
93.498 Provider Relief Fund $309,630
19.510 U.s. Refugee Admissions Program $248,936
93.623 Basic Center Grant $199,642
16.832 Children of Incarcerated Parents Web Portal $194,665
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $162,089
84.002 Adult Education - Basic Grants to States $159,984
93.575 Child Care and Development Block Grant $153,100
84.287 Twenty-First Century Community Learning Centers $150,279
97.010 Citizenship Education and Training $130,067
10.555 National School Lunch Program $126,913
93.557 Education and Prevention Grants to Reduce Sexual Abuse of Runaway, Homeless and Street Youth $117,666
93.235 Affordable Care Act (aca) Abstinence Education Program $93,006
93.583 Refugee and Entrant Assistance_wilson/fish Program $89,974
93.060 Competitive Abstinence Education (cae) $87,938
16.021 Justice Systems Response to Families $85,288
14.169 Housing Counseling Assistance Program $70,000
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $68,594
10.553 School Breakfast Program $64,382
16.575 Crime Victim Assistance $52,321
93.576 Refugee and Entrant Assistance_discretionary Grants $44,474
97.008 Non-Profit Security Program $22,029
10.558 Child and Adult Care Food Program $19,928
16.017 Sexual Assault Services Formula Program $10,284
93.982 Mental Health Disaster Assistance and Emergency Mental Health $9,740
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $9,025
16.812 Second Chance Act Reentry Initiative $3,082
93.567 Refugee and Entrant Assistance_voluntary Agency Programs $240