Finding 971082 (2023-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-04-25

AI Summary

  • Core Issue: The accounting system fails to classify federal grant expenditures correctly, leading to discrepancies in reimbursement reports.
  • Impacted Requirements: Accurate reporting of federal grant expenditures is essential for reimbursement and compliance with grantor criteria.
  • Recommended Follow-Up: Update the accounting system to ensure proper classification of all grant funds and expenditures for accurate reporting.

Finding Text

Condition: The accounting system does not provide for proper classification of federal grant expenditures. Federal grant expenditures are required to be reported to the grantor for reimbursement by the organization. We noted during our audit testing, the monthly report for the 21st Century reimbursement billing did not agree with the monthly general ledger report from the accounting system. In addition, we noted changes made in the accounting system after the billing for reimbursement was prepared. Criteria: The accounting system should provide the proper classification of all federal grant funds received and expenditures made to ensure reporting to federal grantors is accurate. Cause: The accounting system was not setup correctly to properly classify federal grant expenses from other organization expenses. Effect: The balances reported for the 21st Century grant did not reflect accurate expenditures due to the accounting system not setup for classification of expenditures for that grant. Recommendation: We recommend that the organization's accounting system reflect the correct classification of all grant funds received and expended to ensure accurate reporting to all grantors and for accurate presentation in the Schedule of Federal Awards.

Categories

Cash Management Reporting

Other Findings in this Audit

  • 394638 2023-001
    Material Weakness
  • 394639 2023-001
    Material Weakness
  • 394640 2023-001
    Material Weakness
  • 394641 2023-002
    Material Weakness
  • 394642 2023-002
    Material Weakness
  • 394643 2023-002
    Material Weakness
  • 971080 2023-001
    Material Weakness
  • 971081 2023-001
    Material Weakness
  • 971083 2023-002
    Material Weakness
  • 971084 2023-002
    Material Weakness
  • 971085 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.287 Twenty-First Century Community Learning Centers $2.41M
93.558 Temporary Assistance for Needy Families $46,014
16.726 Juvenile Mentoring Program $33,339