Finding 2023-002
material weaknessrepeat findingother matters
- Program
- HEALTHY MARRIAGE PROMOTION AND RESPONSIBLE FATHERHOOD GRANTS (93.086)
- Compliance requirement
- Period of performance
- Repeat
- Chain of 2 audit years; prior finding 2022-003
- FAC record
- FY2023 audit on fac.gov
Finding text from the filing
Finding 2023-002: Period of performance – material weakness in internal controls over compliance and compliance finding. 93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants Criteria: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and have sufficient documented internal controls to ensure compliance with period of performance requirements. Condition: During testing of accrued expenses, it was noted that certain payroll liabilities were improperly accrued as of September 30, 2023. Further, during period of performance testing, it was noted that the Organization does not have sufficient internal controls documented to ensure compliance. Cause: The Organization’s lack of internal controls resulted in noncompliance. Effect: The Organization overcharged the budget period for expenses that should have not been accrued. Additionally, the Organization’s procedures do not allow for the timely tracking of refundable advances, funds drawn prior to expenses being incurred. This results in difficulty determining the amount of funds drawn in advance as compared to expenditures incurred. Recommendation: Expenses charged to grant should be reviewed in detail, monthly and at grant year end, to ensure only costs incurred during the budget period are properly accrued. Additionally, the Organization should adopt procedures that allow for the timely tracking of refundable advances, to ensure funds are properly expended during the period of performance. Management’s response: See corrective action plan