2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• The SEFA did not include the following programs:
o U.S. Department of Labor 17.225 Unemployment Insurance Navigator
o U.S. Treasury 21.027 Workforce Navigator
o U.S. Department of Health and Human Services 93.268 Immunization Services
• U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678
• U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265
Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• The SEFA did not include the following programs:
o U.S. Department of Labor 17.225 Unemployment Insurance Navigator
o U.S. Treasury 21.027 Workforce Navigator
o U.S. Department of Health and Human Services 93.268 Immunization Services
• U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678
• U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265
Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• The SEFA did not include the following programs:
o U.S. Department of Labor 17.225 Unemployment Insurance Navigator
o U.S. Treasury 21.027 Workforce Navigator
o U.S. Department of Health and Human Services 93.268 Immunization Services
• U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678
• U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265
Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.
2022-006 Cost Principles over Compensation (Noncompliance and Material Weakness in Internal Controls over Compliance – 21.023)
Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.430(i)(1)(viii) states budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity's written policies) are identified and entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustments must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated.
Condition and Context: Audit procedures revealed that there was a lack of clear documentation to support the actual hours that were allocated or expensed to each program.
Cause: The Organization records payroll expenses by award based on an estimate with a set number of hours allocated per pay period to each award. Actual payroll hours expensed to the grant were not tracked.
Effect: The Organization was not in compliance with financial management standards for maintaining payroll expenditure supporting documentation
Questioned Costs – Unknown
Recommendation: Management should strengthen their processes, controls, and review over payroll recording and documentation to ensure compliance with Uniform Administrative Requirements.
Views of Responsible Officials and Planned Corrective Actions: Management will revise their policies for tracking of time and related payroll costs to at least have some follow-up of tracked hours and consider the need for a subsequent adjustment to initial allocation of payroll costs.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• The SEFA did not include the following programs:
o U.S. Department of Labor 17.225 Unemployment Insurance Navigator
o U.S. Treasury 21.027 Workforce Navigator
o U.S. Department of Health and Human Services 93.268 Immunization Services
• U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678
• U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265
Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.
2022-006 Cost Principles over Compensation (Noncompliance and Material Weakness in Internal Controls over Compliance – 21.023)
Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.430(i)(1)(viii) states budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity's written policies) are identified and entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustments must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated.
Condition and Context: Audit procedures revealed that there was a lack of clear documentation to support the actual hours that were allocated or expensed to each program.
Cause: The Organization records payroll expenses by award based on an estimate with a set number of hours allocated per pay period to each award. Actual payroll hours expensed to the grant were not tracked.
Effect: The Organization was not in compliance with financial management standards for maintaining payroll expenditure supporting documentation
Questioned Costs – Unknown
Recommendation: Management should strengthen their processes, controls, and review over payroll recording and documentation to ensure compliance with Uniform Administrative Requirements.
Views of Responsible Officials and Planned Corrective Actions: Management will revise their policies for tracking of time and related payroll costs to at least have some follow-up of tracked hours and consider the need for a subsequent adjustment to initial allocation of payroll costs.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• The SEFA did not include the following programs:
o U.S. Department of Labor 17.225 Unemployment Insurance Navigator
o U.S. Treasury 21.027 Workforce Navigator
o U.S. Department of Health and Human Services 93.268 Immunization Services
• U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678
• U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265
Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.
2022-006 Cost Principles over Compensation (Noncompliance and Material Weakness in Internal Controls over Compliance – 21.023)
Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.430(i)(1)(viii) states budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity's written policies) are identified and entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustments must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated.
Condition and Context: Audit procedures revealed that there was a lack of clear documentation to support the actual hours that were allocated or expensed to each program.
Cause: The Organization records payroll expenses by award based on an estimate with a set number of hours allocated per pay period to each award. Actual payroll hours expensed to the grant were not tracked.
Effect: The Organization was not in compliance with financial management standards for maintaining payroll expenditure supporting documentation
Questioned Costs – Unknown
Recommendation: Management should strengthen their processes, controls, and review over payroll recording and documentation to ensure compliance with Uniform Administrative Requirements.
Views of Responsible Officials and Planned Corrective Actions: Management will revise their policies for tracking of time and related payroll costs to at least have some follow-up of tracked hours and consider the need for a subsequent adjustment to initial allocation of payroll costs.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• The SEFA did not include the following programs:
o U.S. Department of Labor 17.225 Unemployment Insurance Navigator
o U.S. Treasury 21.027 Workforce Navigator
o U.S. Department of Health and Human Services 93.268 Immunization Services
• U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678
• U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265
Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• The SEFA did not include the following programs:
o U.S. Department of Labor 17.225 Unemployment Insurance Navigator
o U.S. Treasury 21.027 Workforce Navigator
o U.S. Department of Health and Human Services 93.268 Immunization Services
• U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678
• U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265
Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• The SEFA did not include the following programs:
o U.S. Department of Labor 17.225 Unemployment Insurance Navigator
o U.S. Treasury 21.027 Workforce Navigator
o U.S. Department of Health and Human Services 93.268 Immunization Services
• U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678
• U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265
Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• The SEFA did not include the following programs:
o U.S. Department of Labor 17.225 Unemployment Insurance Navigator
o U.S. Treasury 21.027 Workforce Navigator
o U.S. Department of Health and Human Services 93.268 Immunization Services
• U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678
• U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265
Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• The SEFA did not include the following programs:
o U.S. Department of Labor 17.225 Unemployment Insurance Navigator
o U.S. Treasury 21.027 Workforce Navigator
o U.S. Department of Health and Human Services 93.268 Immunization Services
• U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678
• U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265
Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.
2022-006 Cost Principles over Compensation (Noncompliance and Material Weakness in Internal Controls over Compliance – 21.023)
Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.430(i)(1)(viii) states budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity's written policies) are identified and entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustments must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated.
Condition and Context: Audit procedures revealed that there was a lack of clear documentation to support the actual hours that were allocated or expensed to each program.
Cause: The Organization records payroll expenses by award based on an estimate with a set number of hours allocated per pay period to each award. Actual payroll hours expensed to the grant were not tracked.
Effect: The Organization was not in compliance with financial management standards for maintaining payroll expenditure supporting documentation
Questioned Costs – Unknown
Recommendation: Management should strengthen their processes, controls, and review over payroll recording and documentation to ensure compliance with Uniform Administrative Requirements.
Views of Responsible Officials and Planned Corrective Actions: Management will revise their policies for tracking of time and related payroll costs to at least have some follow-up of tracked hours and consider the need for a subsequent adjustment to initial allocation of payroll costs.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• The SEFA did not include the following programs:
o U.S. Department of Labor 17.225 Unemployment Insurance Navigator
o U.S. Treasury 21.027 Workforce Navigator
o U.S. Department of Health and Human Services 93.268 Immunization Services
• U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678
• U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265
Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.
2022-006 Cost Principles over Compensation (Noncompliance and Material Weakness in Internal Controls over Compliance – 21.023)
Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.430(i)(1)(viii) states budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity's written policies) are identified and entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustments must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated.
Condition and Context: Audit procedures revealed that there was a lack of clear documentation to support the actual hours that were allocated or expensed to each program.
Cause: The Organization records payroll expenses by award based on an estimate with a set number of hours allocated per pay period to each award. Actual payroll hours expensed to the grant were not tracked.
Effect: The Organization was not in compliance with financial management standards for maintaining payroll expenditure supporting documentation
Questioned Costs – Unknown
Recommendation: Management should strengthen their processes, controls, and review over payroll recording and documentation to ensure compliance with Uniform Administrative Requirements.
Views of Responsible Officials and Planned Corrective Actions: Management will revise their policies for tracking of time and related payroll costs to at least have some follow-up of tracked hours and consider the need for a subsequent adjustment to initial allocation of payroll costs.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• The SEFA did not include the following programs:
o U.S. Department of Labor 17.225 Unemployment Insurance Navigator
o U.S. Treasury 21.027 Workforce Navigator
o U.S. Department of Health and Human Services 93.268 Immunization Services
• U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678
• U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265
Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.
2022-006 Cost Principles over Compensation (Noncompliance and Material Weakness in Internal Controls over Compliance – 21.023)
Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.430(i)(1)(viii) states budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity's written policies) are identified and entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustments must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated.
Condition and Context: Audit procedures revealed that there was a lack of clear documentation to support the actual hours that were allocated or expensed to each program.
Cause: The Organization records payroll expenses by award based on an estimate with a set number of hours allocated per pay period to each award. Actual payroll hours expensed to the grant were not tracked.
Effect: The Organization was not in compliance with financial management standards for maintaining payroll expenditure supporting documentation
Questioned Costs – Unknown
Recommendation: Management should strengthen their processes, controls, and review over payroll recording and documentation to ensure compliance with Uniform Administrative Requirements.
Views of Responsible Officials and Planned Corrective Actions: Management will revise their policies for tracking of time and related payroll costs to at least have some follow-up of tracked hours and consider the need for a subsequent adjustment to initial allocation of payroll costs.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• The SEFA did not include the following programs:
o U.S. Department of Labor 17.225 Unemployment Insurance Navigator
o U.S. Treasury 21.027 Workforce Navigator
o U.S. Department of Health and Human Services 93.268 Immunization Services
• U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678
• U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265
Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.
2022-004 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508 (b), the auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA:
• The SEFA did not include the following programs:
o U.S. Department of Labor 17.225 Unemployment Insurance Navigator
o U.S. Treasury 21.027 Workforce Navigator
o U.S. Department of Health and Human Services 93.268 Immunization Services
• U.S. Treasury 21.023 Emergency Rental Assistance expenditures were understated by $402,678
• U.S. Treasury 21.027 Housing Navigator expenditures were understated by $3,265
Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: This is the first year the Organization required a Single Audit and the first time a SEFA was prepared. Accounting staff will prepare the SEFA according to mandated guidelines and will work with an experienced accounting consultant to provide additional training for staff on Uniform Guidance requirements and review the SEFA prior to filing.
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.