Finding 963354 (2023-005)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2023
Accepted
2024-03-28

AI Summary

  • Issue: Payroll costs were charged to the grant before it officially started, leading to improper reimbursement requests.
  • Requirements Impacted: Internal controls must ensure that only expenses incurred during the grant period are submitted for reimbursement.
  • Follow-Up: Implement stricter checks on reimbursement requests and ensure expenses are recorded based on the date incurred, not when paid.

Finding Text

Grant / Contract Requests for Reimbursement Condition: Payroll incurred prior to the effective date of the grant was charged to the program and requested for reimbursement. Criteria: Internal controls should be in place to ensure only costs incurred in the grant period be requested for reimbursement. Cause: Controls were not implemented. Effect: Amounts not allowed per grant terms were improperly requested for reimbursement. Recommendation: Closer attention should be paid when preparing requests for reimbursement to ensure only allowable expenses are being included in the request. In addition, expenses should always be posted as of the date incurred, not as of the date paid. This will ensure expenses are posted to the proper period and will assist with the preparation of the requests for reimbursement. Views of Responsible Officials and Planned Corrective Actions: AACA agrees with the finding and the recommendation will be implemented.

Categories

Questioned Costs Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 386910 2023-003
    Material Weakness
  • 386911 2023-004
    Material Weakness
  • 386912 2023-005
    Material Weakness
  • 386913 2023-006
    Material Weakness
  • 963352 2023-003
    Material Weakness
  • 963353 2023-004
    Material Weakness
  • 963355 2023-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.231 Emergency Solutions Grant Program $312,314
11.307 Covid-19 - Economic Adjustment Assistance $195,154
17.259 Wia Youth Activities $164,521
21.027 Coronavirus State and Local Fiscal Recovery Funds $121,450
21.008 Low Income Taxpayer Clinics $105,537
96.569 Community Services Block Grant $51,038
84.002 Adult Education - Basic Grants to States $46,021
14.218 Community Development Block Grants/entitlement Grants $28,560