Finding 986806 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-02
Audit: 311959
Organization: South Dakota Achieve (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance related to the preparation of the consolidated schedule of expenditures of federal awards.
  • Impacted Requirements: The organization must ensure proper controls are in place for accurate financial reporting, especially when preparing the schedule of expenditures.
  • Recommended Follow-Up: Management should enhance internal controls and training to improve the preparation process for the schedule, acknowledging the need for auditor assistance due to staffing limitations.

Finding Text

2022-001 Department of Health and Human ServicesFederal Financial Assistance Listing #93.498COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural DistributionApplicable Federal Award Number and Year ? Period 2 TIN #460233030 and TIN #237072116Preparation of the Consolidated Schedule of Expenditures of Federal AwardsMaterial Weakness in Internal Control over Compliance - OtherCriteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (the schedule) and the accompanying notes to the schedule.Condition: We removed expenditures and added new expenditures to the schedule prepared by management.Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Organization meets a specified threshold of federal expenditures.Effect: There is a reasonable possibility that the Organization would not be able to draft a complete and accurate schedule without the assistance of the auditors.Questioned Costs: None reported.Context: Sampling was not used.Repeat Finding from Prior Years: NoRecommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the Organization is aware of this condition for financial reporting requirements relating to the Organization?s schedule and the internal controls that impact financial reporting.Views of Responsible Officials: Management agrees with the finding.

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 410364 2022-001
    Material Weakness
  • 410365 2022-002
    Material Weakness
  • 410366 2022-002
    Material Weakness
  • 986807 2022-002
    Material Weakness
  • 986808 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $999,829
10.553 School Breakfast Program $49,341
10.555 National School Lunch Program $10,436
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $7,473