Audit 19027

Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Expenditures for federal awards are reported based on amounts allowable under the SVOG Program, the Organization did not have a system to identify specific expenses outside of the accounting system. Condition: In the sample of expenditures there were two instances of expenditures that were out of the scope of the SVOG use of funds, however the total population of eligible expenses exceeded the federal awards amount. The amount of these two instances totaled $463, not considered a material amount. There was a not a system in place that identified specific items in instances where there were excess expenditures above federal award amounts. Context: The population of expenditures in the accounting system was greater than the total federal awards available. Due to this the population was used for testing all awards expended even through it was in excess of federal award funds received. Effect: Two instances of expenditures that were out of the scope of the SVOG program parameters. In an addition, an instance of noncompliance could exist and not be detected by management. Cause: The Organization does not have the staffing resources or procedures in place to individually track expenditures relative to the federal awards beyond normal posting of expenditures in the accounting records. Recommendation 2022-001: The Organization should continue to monitor expenditures to ensure they are recorded in the correct period and incorporate monitoring for unusual transactions, in addition they should monitor and incorporate procedures to ensure controls are in place and operating effectively. Management Comments: Management acknowledges the material weakness and is in the process of creating written control policy and procedures that will be in place if they ever receive federal awards in the future. Please see Managements Corrective Action Plan.

Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Expenditures for federal awards are reported based on amounts allowable under the SVOG Program, the Organization did not have a system to identify specific expenses outside of the accounting system. Condition: In the sample of expenditures there were two instances of expenditures that were out of the scope of the SVOG use of funds, however the total population of eligible expenses exceeded the federal awards amount. The amount of these two instances totaled $463, not considered a material amount. There was a not a system in place that identified specific items in instances where there were excess expenditures above federal award amounts. Context: The population of expenditures in the accounting system was greater than the total federal awards available. Due to this the population was used for testing all awards expended even through it was in excess of federal award funds received. Effect: Two instances of expenditures that were out of the scope of the SVOG program parameters. In an addition, an instance of noncompliance could exist and not be detected by management. Cause: The Organization does not have the staffing resources or procedures in place to individually track expenditures relative to the federal awards beyond normal posting of expenditures in the accounting records. Recommendation 2022-001: The Organization should continue to monitor expenditures to ensure they are recorded in the correct period and incorporate monitoring for unusual transactions, in addition they should monitor and incorporate procedures to ensure controls are in place and operating effectively. Management Comments: Management acknowledges the material weakness and is in the process of creating written control policy and procedures that will be in place if they ever receive federal awards in the future. Please see Managements Corrective Action Plan.