Finding 950806 (2023-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-03-07
Audit: 293973
Organization: Steps, Inc. (VA)

AI Summary

  • Core Issue: Grant billings were based on external spreadsheets, not reconciled with the accounting system.
  • Impacted Requirements: Internal controls for accurate and timely reconciliation of grant billings were not followed.
  • Recommended Follow-Up: Implement procedures for timely reconciliations and management reviews of grant financial activities.

Finding Text

Criteria: Internal controls should be in place that provide reasonable assurance that grant billings are reconciled accurately and timely to the accounting system. Condition: Some grants were being billed to the granting agency based on spreadsheets that were outside of the accounting system and not being reconciled to the accounting records. Cause: Documents used to prepare grant billings for one grant were not reconciled accurately and timely to the accounting system. Effect: Due to the failure to reconcile grant billings accurately and timely to the accounting system, amounts could be billed to a grant for expenditures that do not exist or were already billed to another grant. Recommendation: Procedures should be implemented and followed requiring grant billings to be reconciled timely and accurately to data recorded in the accounting system. Management should review financial activity by grant in a timely manner to allow for timely research of any discrepancies. Views of Responsible Officials and Planned Corrective Actions: STEPS agrees with the finding and the recommended procedures will be implemented.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 374363 2023-002
    Significant Deficiency
  • 374364 2023-001
    Material Weakness
  • 950805 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $299,986
93.569 Community Services Block Grant $276,188
17.235 Senior Community Service Employment Program $265,468
14.231 Emergency Solutions Grant Program $236,089
10.558 Child and Adult Care Food Program $232,564
93.558 Temporary Assistance for Needy Families $166,666