Finding 61447 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-11-17
Audit: 54350
Auditor: Dwc Cpa's LLC

AI Summary

  • Core Issue: Management lacked proper internal controls for preparing the schedule of expenditures of federal awards, leading to significant inaccuracies.
  • Impacted Requirements: The schedule did not comply with Title 2 U.S. Code of Federal Regulations Part 200.510, resulting in an understatement of federal awards by $654,289.
  • Recommended Follow-Up: Management should enhance their understanding of federal award requirements by participating in educational courses, such as the upcoming Uniform Guidance Webinar Series.

Finding Text

Condition: Management had inadequate internal control over the preparation of the schedule of expenditures of federal awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200.510, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires auditees to prepare an accurate schedule of expenditures of federal awards for the period covered by the auditee?s financial statements, which must include total federal awards expended. Draft UNITED WAY OF ST. JOSEPH COUNTY, INC. AND AFFILIATES SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2022 -29- Cause: The Vice President of Finance and Administration did not include in expenditures a late contractor invoice for the Southeast Neighborhood Center in the schedule of expenditures of federal awards. She was uncertain whether a payables invoice should be included in that schedule. Context: The correct award expenditures of $1,837,500 was understated by $654,289 before audit adjustment. Effect or Potential Effect: The schedule of expenditures of federal awards was materially incorrect before audit adjustment. Questioned costs: None. Recommendations: We recommend that management obtain knowledge of federal award administration requirements, including preparation of the schedule of expenditures of federal awards, through taking educational courses on the Uniform Guidance. Views of Responsible Officials and Planned Corrective Action: We will have management attend the Uniform Guidance Spring 2023 Webinar Series through Federal Grants Training. This special webinar series will explain recent changes as well as the major grants management rules that must be followed.

Corrective Action Plan

Recommendations: The auditor recommends that management obtain knowledge of federal award administration requirements, including preparation of the schedule of expenditures of federal awards, through taking educational courses on the Uniform Guidance. Action Taken: We will have management attend the Uniform Guidance Spring 2023 Webinar Series through Federal Grants Training. This special webinar series will explain recent changes as well as the major grants management rules that must be followed.

Categories

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $1.84M
14.218 Community Development Block Grants/entitlement Grants $10,000