Finding 620910 (2022-008)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-09-29
Audit: 51950
Auditor: Kreischer Miller

AI Summary

  • Core Issue: The Foundation submitted invoices for reimbursement that exceeded actual expenses incurred by subrecipients, leading to a significant deficiency in internal controls.
  • Impacted Requirements: Compliance with allowable costs and the period of performance for federal grants was not met, resulting in a net excess of $33,622 charged to the grant.
  • Recommended Follow-Up: Implement procedures to ensure that all federal grant charges are based on actual expenditures and align with the period when services were performed.

Finding Text

Finding 2022-008 Federal Assistance Listing Number: 16.560 Federal Agency: U.S. Department of Justice Program Name: National Institute of Justice Research, Evaluation, and Development Project Grants Type(s) of Compliance Requirements: Allowable Costs; Period of Performance Type of Finding: Internal Control over Compliance ? Significant Deficiency; Noncompliance Reference to Financial Statement Finding: Finding 2022-004 Criteria: Invoices submitted to the grantor for reimbursement should include expenditures incurred for goods purchased and services provided. Condition: The Foundation submitted invoices for payment/reimbursement of subrecipient payments in excess of amounts actually incurred and billed by subrecipients. Cause: Quarterly invoices submitted to the grantor for reimbursement of subrecipient payments made were based in a budgeted payment schedule rather than actual invoices received from the subrecipient. Effect: As of December 31, 2022, a reconciliation of invoices submitted to the grantor compared to expenses incurred by the subrecipient resulted in a net excess of $33,622 charged to the grant. Context: 1 sample selection ($37,853) out of a sample of 40 items selected from a population of 373 items. Recommendation: We recommend that the Foundation develop and implement procedures to ensure that federal grants and contracts are charged based on expenditures incurred and in the period when performed. View of Responsible Officials: See corrective action plan on page 38.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management Period of Performance Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 44465 2022-005
    Material Weakness
  • 44466 2022-006
    Material Weakness
  • 44467 2022-007
    Significant Deficiency
  • 44468 2022-008
    Significant Deficiency
  • 44469 2022-009
    Significant Deficiency
  • 44470 2022-010
    -
  • 620907 2022-005
    Material Weakness
  • 620908 2022-006
    Material Weakness
  • 620909 2022-007
    Significant Deficiency
  • 620911 2022-009
    Significant Deficiency
  • 620912 2022-010
    -

Programs in Audit

ALN Program Name Expenditures
16.560 National Institute of Justice Research, Evaluation, and Development Project Grants $1.05M