Finding 945679 (2023-004)

Material Weakness
Requirement
BC
Questioned Costs
-
Year
2023
Accepted
2024-02-14

AI Summary

  • Core Issue: The Organization lacks a review process for monthly reimbursement requests before submission.
  • Impacted Requirements: This violates 2 CFR section 200.303(a), which mandates effective internal controls over Federal awards.
  • Recommended Follow-Up: Implement a documented review process for reimbursement requests to reduce errors.

Finding Text

2 CFR section 200.303(a) requires that non-federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The Organization does not have someone reviewing the monthly reimbursement requests prior to the submission. Questioned costs: None Context: We tested all three months of billing in fiscal year 2023, noting there was no review present for any of the months. Cause: Management indicated a review process is not in place. Effect: The effect of this condition increases the possibility that reimbursement requests may contain errors. Repeat Finding: No Recommendation: We recommend the Organization implement a documented review process for reimbursement requests before submitting the requests monthly. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Cash Management Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 369236 2023-003
    Material Weakness
  • 369237 2023-004
    Material Weakness
  • 945678 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $1.60M
14.218 Community Development Block Grants/entitlement Grants $382,400
21.027 Coronavirus State and Local Fiscal Recovery Funds $257,467
16.575 Crime Victim Assistance $59,320
97.024 Emergency Food and Shelter National Board Program $6,500