Avalon: A Center for Women and Children

SECTION II. FINANCIAL STATEMENT FINDING 2020-001 Finding: Management?s review of allowable costs applied to grants does not include a detailed reconciliation of all supporting schedules. Identification of the Federal Program: Crime Victim Assistance CFDA 16.575, from the U.S. Department of Justice, passed through the Commonwealth of Virginia Department of Criminal Justice Services. Criteria or specific requirement : The Department of Justice requires effective control and accountability for all grant and subgrant cash, real and personal property, and other assets. Recipients and subrecipients must adequately safeguard all such property and assure that it is used solely for authorized purposes. Also, the Department of Justice requires that the system should support making sure that Federal cost principles, agency program regulations, and the terms of grant and subgrant agreements are followed in determining the reasonableness, allowability, and allocability of funds. Condition: During our testing of compliance, we noted differences in tracked costs considered allowable for the grant between the general ledger, the grant tracking worksheet and the cost submission reports. Cause: Management does not review individual tracked costs considered allowable for the grant in the grant tracking spreadsheet against the general ledger and the cost submission reports. Effect or Potential Effect: Tracked costs reported as allowable may be inaccurate. Questioned Costs: $0 Identification as a Repeat Finding: Not a repeat finding. Recommendation: On a quarterly basis, Finance Manager reconciles cost report submissions to the grantor to general ledger revenue to the grant tracking workbook that tracks costs for each grant before Executive Director reviews and approves expense report submissions and reconciliations to each grantor. Executive Director reviews total costs being submitted to the grantor quarterly for each expense category against the approved budget to ensure that they have time to submit a budget amendment request if there are additional expenses that could be applied in a different expense category. Views of Responsible Officials: Management agrees and proposes to expand the procedures to performing a reconciliation of the statement of financial position to underlying documentation, including the general ledger, the grant tracking workbook, and the cost report submissions, and to review balances remaining on grants. Management agrees that dividing accounts in the accounting system?s chart of accounts according to grant instead of grantor to make reporting and review clearer. SECTION III. FINDING AND QUESTIONED COSTS FOR FEDERAL AWARDS 2020-001 Reference wording in Section II above.

GSA_MIGRATION