Finding Text
FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS Finding Number: 2022-001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Crime Victim Assistance 16.575 2018-V2-GX-0012 N/A Family Violence Prevention and Services/Domestic Violence Shelter and Supportive Services 93.671 ADHS17-185594 N/A Federal Agency: U.S. Department of Justice/U.S. Department of Health and Human Services Pass-Through Agencies: Arizona Department of Public Safety/Arizona Department of Health Services Questioned Costs: N/A Type of Finding: Significant Deficiency Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles CRITERIA Uniform Guidance (CFR 200.510(b)) requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with laws, regulations and program requirements. The Organization must ensure expenses reported on the Schedule of Expenditures of Federal Awards is properly supported. CONDITION The Organization lacked sufficient internal controls over tracking expenses for its federal grants. CAUSE Turnover in key accounting positions led to an inconsistent methodology of classifying expenses throughout the year. EFFECT Amounts reported on the Schedule of Expenditures of Federal Awards were not fully supported by the financial reporting software. CONTEXT The sample was not intended to be, and was not, a statistically valid sample. Federal expenses reported in the financial reporting software did not agree with amounts on the Schedule of Expenditures of Federal Awards. The amounts reported on the Schedule of Expenditures of Federal Awards are total reimbursements received. RECOMMENDATION The Organization should ensure policies and procedures for tracking federal grant expenses are accurate. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.