Finding 972990 (2021-002)

Material Weakness
Requirement
ABL
Questioned Costs
-
Year
2021
Accepted
2024-05-13

AI Summary

  • Core Issue: Grant reports lack a proper review process, risking inaccuracies in submitted expenditures.
  • Impacted Requirements: All federal grant expenditures must be reviewed by someone knowledgeable about grant rules.
  • Recommended Follow-Up: Assign a separate reviewer for all expenditures before report submission to ensure compliance.

Finding Text

Prior Reference Number - None Federal Program - Economic Adjustment Assistance (Assistance Listing No. 11.307) Federal Program - Economic Adjustment Assistance (Assistance Listing No. 11.307) Condition - Expenditures submitted in grant reports lack a detailed review by someone other than the preparer of the Federal reports. Criteria - All expenditures submitted on federal grant reports should be reviewed by a person knowledgeable about the requirements for activities allowed or unallowed for the grant. As such, the Organization’s internal control over this process should ensure all expenditures are reviewed by a person with such knowledge. Cause - Controls in place are not sufficient to ensure completeness and accuracy of the reports submitted to granting agencies. Effect - Without proper controls in place, expenditures may not be complete, accurate or allowable under grant requirements and could result in unallowable federal expenditures reported. Recommendation - We recommend the Organization designate a knowledgeable person separate from the preparer of the reports to review all expenditures that go into the reports prior to submission. Management’s Response/Corrective Action Plan (unaudited) - Management agrees with the finding. The Organization will designate a knowledgeable person separate from the preparer of the reports to review all expenditures that go into the reports prior to submission.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 396548 2021-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
11.307 Economic Adjustment Assistance $3.09M
59.065 Growth Accelerator Fund Competition $50,000