Finding Text
Finding 2023-001: Cut off of Expenses
Information on the Federal Program: 93.421
Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 CFR
200 Section 200.303 “Internal Controls” requires recipients of Federal funds to establish internal
controls that should be in compliance with guidance in the "Integral Control Integrated Framework"
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition: During our audit, we noted expenses that were applicable to fiscal year ended June 30,
2022 that were entered into their accounting system in the fiscal year ended June 30, 2023. In
addition, as a result of these items being in the wrong period, management did a search and noted
items applicable to the fiscal year ended June 30, 2023 that were initially recorded in fiscal year
ending June 30, 2024.
Cause: The employee that is in charge of submitting invoices to Bill.com for grant payments failed to
submit these into their accounting system in the proper period.
Effect or Potential Effect: This caused the Schedule of Expenditures of Federal Awards to be
understated for the year ended June 30, 2022 and overstated for the year ended June 30, 2023.
Questioned Costs: None
Context: Our audit procedures over accounts payable consisted of items over our materiality
threshold These items were identified through these tests.
Identification as a Repeat Finding, if Applicable: Not applicable
Recommendation: We recommend that AUCD develop additional procedures to ensure that the
employee in charge of this program records all invoices to be paid in the proper period.