Finding 972575 (2021-002)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2021
Accepted
2024-05-07

AI Summary

  • Issue: Uncashed and voided checks were not properly removed from the accounting system, leading to discrepancies.
  • Requirements Impacted: Funds must be accurately distributed to eligible participants to avoid potential disallowance of assistance costs.
  • Recommended Follow-Up: Implement stronger controls for voiding checks to ensure accurate accounting and reconciliation between systems.

Finding Text

2021-002. Condition: Uncashed and undistributed checks voided from accounting records but remained as outstanding checks in the system that the checks were distributed from causing a difference in the accounting records and payment distributed. Criteria: Funds distributed to eligible participants. Cause: Proper controls were not in place in regards to voiding uncashed and undistributed checks from the accounting system. Effect: The cost of the assistance may be disallowed. Context: A reconciliation between the grant system and the accounting system specifically identified 58 grants totaling $193,731, and 6 grants totaling $23,700 were voided and reissued in the next fiscal year. 45 grants totaling $152,336 were voided and not reissued, 6 grants totaling $16,695 were checks returned from landlords, 1 grant totaling $1,000 was a duplicate entry.

Categories

Questioned Costs

Other Findings in this Audit

  • 396132 2021-001
    Significant Deficiency
  • 396133 2021-002
    Material Weakness
  • 396134 2021-003
    Material Weakness
  • 972574 2021-001
    Significant Deficiency
  • 972576 2021-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $4.44M
21.023 Emergency Rental Assistance Program $2.95M
97.024 Emergency Food and Shelter National Board Program $110,000
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $67,319
14.218 Community Development Block Grants/entitlement Grants $17,721
97.088 Disaster Assistance Projects $3,274