Finding 972268 (2023-002)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-05-03

AI Summary

  • Core Issue: There was an overstatement of federal award expenditures totaling $264,628, with $225,316 related to closed programs and $39,312 to ongoing programs.
  • Impacted Requirements: The overstatement affects compliance with federal funding regulations, necessitating a liability recording for funds to be repaid.
  • Recommended Follow-Up: Enhance internal controls over reconciliation and review processes to ensure only valid transactions are recorded in subsidiary ledgers.

Finding Text

Effect The total effect on federal awards was an overstatement of expenditures of $264,628, which was made up of $225,316 of expenditures that related to Assisted Listing Numbers (ALN) that closed prior to fiscal year 2023 and $39,312 of expenditures related to ALNs that were ongoing during fiscal year 2023. For the $39,312 of overstatement of expenditures that related to ongoing programs, the Council reduced fiscal year 2023 expenditures by the $39,312, thereby having no net effect on the programs for the year ended September 30, 2023. For the $225,316 of overstatement of expenditures that related to programs that closed prior to the year ended September 30, 2023, the Council recorded a liability as of September 30, 2023, representing the funds to be repaid to the federal government. Questioned Costs: Amounts overcharged to federal awards that closed in prior years were as follows: ALN 93.638 ALN 93.283 ALN 93.788 Total Fiscal Year: 2015 $ - $ 512 $ - $ 512 2016 5,200 3,932 - 9,132 2019 215,007 - - 215,007 2020 - - 665 665 Total $ 220,207 $ 4,444 $ 665 $ 225,316 Recommendation We recommend that the Council enhance its internal control over reconciliation and review to ensure that its subsidiary ledgers only include proper and valid transactions. Views of Responsible Officials See corrective action plan.

Categories

Questioned Costs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 395826 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $9.14M
93.431 Networking2save”: Cdc’s National Network Approach to Preventing and Controlling Tobacco-Related Cancers in Special Populations $797,915
16.839 Stop School Violence $63,437
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $53,890