Audit 2771

Condition - During the fiscal year ended June 30, 2021, several employees whose salaries were charged to multiple contracts were charged in total in excess of their total salary amount. This was primarily due to adding a portion of employees salaries to new contracts, while not removing a corresponding amount from the other contracts. Criteria - The allocation of expenses, including salaries, to multiple contracts should not result in a total amount charged to contracts, which exceeds the totoal amount of the expense or salary. Cause - The organization had significant turnover within its fiscal staff, with several controllers and bookkeepers, including multiple temporary staff, during 2020, 2021 and 2022. The numerous persons involved, often for a short time, led to staff members being uncertain as to all of the steps necessary in the allocation process. In addition, a separate allocation calculation is done for each contract which also contributed to the condition, allowing the calculation for one contract to be completed without making the necessary adjustments to other contracts. Effect - The payroll costs charged to contracts for several employee exceeded their actual cost. Recommendation - As part of its fiscal policies, the organization should consider listing the prioritized duties of each member of the fiscal staff, including the calculations of allocating costs. The allocation calculation should be done in one steps covering the allocation to all contracts. This will enable fiscal staff to see and be sure that all expenses are charged to contracts to the fullest extent allowable, and to be certain that expenses are not overbilled to contracts. Management Response - As of June 2021, the organization has hired a controller with years of experience with government accounting, as well as a qualified bookkeeper, thus it expects that allocations will be properly calculated. Current Status - The organization anticipates that the newly hired controller and bookkeeper will add continuity and stability to the fiscal staff and processes, correcting the expense allocation issues and elimate excess amounts being charged to contracts. The fiscal staff has developed a standard worksheet to calculate and better track the allocations. However, as that was not implement for the entire fiscal year, there are some additional questioned costs in the fiscal year ended June 30, 2022 pertaining to this issue. No questioned costs in 2022 pertained to either major program. The organization has prepared a $24,617 payment for the repayment of the prior year questioned cost. Awaiting confirmation of where the payment is to be sent to. Questioned Costs 2021 = $24,617.Questioned Costs in 2022 = $3,174.

Condition - During the fiscal year ended June 30, 2021, several employees whose salaries were charged to multiple contracts were charged in total in excess of their total salary amount. This was primarily due to adding a portion of employees salaries to new contracts, while not removing a corresponding amount from the other contracts. Criteria - The allocation of expenses, including salaries, to multiple contracts should not result in a total amount charged to contracts, which exceeds the totoal amount of the expense or salary. Cause - The organization had significant turnover within its fiscal staff, with several controllers and bookkeepers, including multiple temporary staff, during 2020, 2021 and 2022. The numerous persons involved, often for a short time, led to staff members being uncertain as to all of the steps necessary in the allocation process. In addition, a separate allocation calculation is done for each contract which also contributed to the condition, allowing the calculation for one contract to be completed without making the necessary adjustments to other contracts. Effect - The payroll costs charged to contracts for several employee exceeded their actual cost. Recommendation - As part of its fiscal policies, the organization should consider listing the prioritized duties of each member of the fiscal staff, including the calculations of allocating costs. The allocation calculation should be done in one steps covering the allocation to all contracts. This will enable fiscal staff to see and be sure that all expenses are charged to contracts to the fullest extent allowable, and to be certain that expenses are not overbilled to contracts. Management Response - As of June 2021, the organization has hired a controller with years of experience with government accounting, as well as a qualified bookkeeper, thus it expects that allocations will be properly calculated. Current Status - The organization anticipates that the newly hired controller and bookkeeper will add continuity and stability to the fiscal staff and processes, correcting the expense allocation issues and elimate excess amounts being charged to contracts. The fiscal staff has developed a standard worksheet to calculate and better track the allocations. However, as that was not implement for the entire fiscal year, there are some additional questioned costs in the fiscal year ended June 30, 2022 pertaining to this issue. No questioned costs in 2022 pertained to either major program. The organization has prepared a $24,617 payment for the repayment of the prior year questioned cost. Awaiting confirmation of where the payment is to be sent to. Questioned Costs 2021 = $24,617.Questioned Costs in 2022 = $3,174.