Finding 2022-002 Administration for Children and Families Federal Assistance Listing/CFDA #93.566, 2001SDRSOC, 10/01/2019 ? 9/30/2021 Federal Assistance Listing/CFDA #93.566, 2101SDRSSS, 10/01/2020 ? 9/30/2023 Refugee and Entrant Assistance ? State Administered Programs Allowable Costs / Costs Principles and Activities Allowed or Unallowed Significant Deficiency in Internal Control over Compliance Criteria: The Organization is required to have procedures in place to assure that federal awards are expended only for allowable costs in accordance with Subpart E ? Cost Principles of the Uniform Guidance. Allowable costs are supported by appropriate documentation and correctly charged as to account, amount, and period. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Two instances were identified in which the manual federal time tracker, tracks federal and non-federal hours for employees, used to allocate employee?s time across federal awards, was not reviewed and approved prior to completion of monthly direct and indirect cost allocations based on staff time by federal award. Cause: There was a lapse in oversight of the internal control process ensuring federal time trackers were reviewed and approved prior to preparation of monthly direct and indirect cost allocation. Federal time tracker was not reviewed and approved by the employee supervisor in a timely manner. Effect: Lack of compliance with designed internal controls over review of federal time trackers could result in the Organization charging costs at an incorrect allocated rate to the federal award. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 30 payroll disbursements out of a total of approximately 1,286 salary disbursements were tested which accounted for $17,635 out of $407,446 of salary disbursements. In addition, a nonstatistical sample of 4 employee benefit disbursements out of a total of approximately 4,796 employee benefit disbursements were tested which accounts for $29 out of $78,993 of employee benefit disbursements. Repeat Finding from Prior Year: Yes, prior year finding 2021-002 Recommendation: We recommend that management review the process over approving federal time trackers to ensure staff time by grant is reviewed prior to preparation of direct and indirect allocations of expenses. View of Responsible Officials: Management is in agreement.
Finding 2022-003 Administration for Children and Families Federal Assistance Listing/CFDA #93.566, 1801SDRSOC, 10/01/2017 ? 9/30/2019 Federal Assistance Listing/CFDA #93.566, 2101SDRSSS, 10/01/2020 ? 9/30/2023 Federal Assistance Listing/CFDA #93.566, 2102SDRCMA, 10/01/2020 ? 9/30/2022 Federal Assistance Listing/CFDA #93.566, 2201SDRSSS, 10/01/2021 ? 9/30/2024 Federal Assistance Listing/CFDA #93.566, 2202SDRCMA, 10/01/2021 ? 9/30/2023 Refugee and Entrant Assistance ? State Administered Programs Reporting Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR Part 170 establishes requirements for recipients? reporting of information on subawards as required by the Federal Funding Accountability and Transparency Act of 2006 (FFATA). Condition: We noted the following during testing: a) FFATA report was filed outside the 30-day reporting requirement. Further, FFATA was submitted under the incorrect FAIN and no subaward ID was identified within the FFATA report. Additionally, no support to substantiate a secondary review was completed prior to submission of FFATA report. b) No support could be provided to substantiate a secondary review of two Federal Financial Reports (ORR2s). c) Two amounts reported within a programmatic report (ORR6) did not agree to supporting documentation. Cause: The USAspending.gov website did not provide the correct FAIN as an option when filing FFATA report. The Organization failed to attempt to troubleshoot the error, resulting in untimely submission of the report. In addition, the subrecipient agreement does not identify a subaward ID. Organization could not provide support to substantiate a secondary review of the Federal Financial Reports was completed prior to submission. Documentation used to prepare the programmatic report was not retained by management. Effect: Ineffective controls over this area of compliance could result in a reasonable possibility that the Organization would not be in compliance with the federal award as it relates to reporting. Questioned Costs: None reported Context/Sampling: Included under seven award letters of the federal program, four quarterly federal financial reports (SF-425s) and two quarterly federal financial reports (ORR2s) were reviewed in the Organization?s fiscal year. In addition, one final federal financial report and one semi-annual programmatic report was reviewed in the Organization?s fiscal year. A total of 20 reports were filed during the Organization?s fiscal year. The FFATA report for the only subrecipient who received funds through this program was tested. The quantity and subaward obligation errors were noted as follows: (see table in report) A nonstatistical sample of 8 reports were selected for testing out of a population of 21 reports required to be filed in the fiscal year. Repeat Finding from Prior Years: Yes, prior year finding 2021-004 Recommendation: We recommend that management review internal control procedures over reporting to ensure reports are submitted timely and ensure a documented secondary review and approval is completed prior to report submission. Views of Responsible Officials: Management is in agreement.
Finding 2022-004 Administration for Children and Families Federal Assistance Listing/CFDA #93.566, 2201SDRSSS, 10/01/2021 ? 9/30/2024 Refugee and Entrant Assistance ? State Administered Programs Subrecipient Monitoring Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR 200.322 identifies the requirements for all pass-through entities which include the following: A. Evaluate each subrecipient?s risk of noncompliance with federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring, B. Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with federal statues, regulations, and the terms and conditions of the subaward; and that the subaward performance goals are achieved. C. Verify that every subrecipient is audited as required by Subpart F ? Audit Requirements. Condition: The Organization could not provide support to substantiate a secondary review was completed over the evaluation of subrecipient?s risk of noncompliance. Cause: There was no documentation retained to support a secondary review was completed over the evaluation of subrecipient?s risk of noncompliance. Effect: Inadequate controls over this area of compliance including not retaining supporting documentation may make it difficult for the Organization to demonstrate the program is in compliance with laws, regulations, and other compliance requirements. Questioned Costs: None reported Context/Sampling: Only one subrecipient who received funds through this program was tested. Repeat Finding from Prior Years: Yes, prior year finding 2021-003 Recommendation: We recommend that management review the procedures and control processes over subrecipient monitoring to ensure a secondary review is formally documented related to the evaluation of subrecipient?s risk on noncompliance. View of Responsible Officials: Management is in agreement.
Finding 2022-005 Administration for Children and Families Federal Assistance Listing/CFDA #93.566, 2202SDRCMA, 10/01/2021 ? 9/30/2023 Refugee and Entrant Assistance ? State Administered Programs Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: One instance was identified where two check copies were not retained within the case file to support the checks were received by the refugee family. Cause: Management?s internal review of the case file identified the check copies were missing from the case file; however, no steps were followed to ensure copies of checks with refugee signatures were obtained and retained within the case file. Effect: Case file documentation is incomplete to support the payments made to the refugee family were properly received. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 11 participant case files out of 75 participant case files were selected for testing. Repeat Finding from Prior Year: No Recommendation: We recommend that management review the process over eligibility and maintaining case file management be reviewed with applicable program employees to ensure they are aware of grant requirements. View of Responsible Officials: Management is in agreement.
Finding 2022-002 Administration for Children and Families Federal Assistance Listing/CFDA #93.566, 2001SDRSOC, 10/01/2019 ? 9/30/2021 Federal Assistance Listing/CFDA #93.566, 2101SDRSSS, 10/01/2020 ? 9/30/2023 Refugee and Entrant Assistance ? State Administered Programs Allowable Costs / Costs Principles and Activities Allowed or Unallowed Significant Deficiency in Internal Control over Compliance Criteria: The Organization is required to have procedures in place to assure that federal awards are expended only for allowable costs in accordance with Subpart E ? Cost Principles of the Uniform Guidance. Allowable costs are supported by appropriate documentation and correctly charged as to account, amount, and period. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Two instances were identified in which the manual federal time tracker, tracks federal and non-federal hours for employees, used to allocate employee?s time across federal awards, was not reviewed and approved prior to completion of monthly direct and indirect cost allocations based on staff time by federal award. Cause: There was a lapse in oversight of the internal control process ensuring federal time trackers were reviewed and approved prior to preparation of monthly direct and indirect cost allocation. Federal time tracker was not reviewed and approved by the employee supervisor in a timely manner. Effect: Lack of compliance with designed internal controls over review of federal time trackers could result in the Organization charging costs at an incorrect allocated rate to the federal award. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 30 payroll disbursements out of a total of approximately 1,286 salary disbursements were tested which accounted for $17,635 out of $407,446 of salary disbursements. In addition, a nonstatistical sample of 4 employee benefit disbursements out of a total of approximately 4,796 employee benefit disbursements were tested which accounts for $29 out of $78,993 of employee benefit disbursements. Repeat Finding from Prior Year: Yes, prior year finding 2021-002 Recommendation: We recommend that management review the process over approving federal time trackers to ensure staff time by grant is reviewed prior to preparation of direct and indirect allocations of expenses. View of Responsible Officials: Management is in agreement.
Finding 2022-003 Administration for Children and Families Federal Assistance Listing/CFDA #93.566, 1801SDRSOC, 10/01/2017 ? 9/30/2019 Federal Assistance Listing/CFDA #93.566, 2101SDRSSS, 10/01/2020 ? 9/30/2023 Federal Assistance Listing/CFDA #93.566, 2102SDRCMA, 10/01/2020 ? 9/30/2022 Federal Assistance Listing/CFDA #93.566, 2201SDRSSS, 10/01/2021 ? 9/30/2024 Federal Assistance Listing/CFDA #93.566, 2202SDRCMA, 10/01/2021 ? 9/30/2023 Refugee and Entrant Assistance ? State Administered Programs Reporting Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR Part 170 establishes requirements for recipients? reporting of information on subawards as required by the Federal Funding Accountability and Transparency Act of 2006 (FFATA). Condition: We noted the following during testing: a) FFATA report was filed outside the 30-day reporting requirement. Further, FFATA was submitted under the incorrect FAIN and no subaward ID was identified within the FFATA report. Additionally, no support to substantiate a secondary review was completed prior to submission of FFATA report. b) No support could be provided to substantiate a secondary review of two Federal Financial Reports (ORR2s). c) Two amounts reported within a programmatic report (ORR6) did not agree to supporting documentation. Cause: The USAspending.gov website did not provide the correct FAIN as an option when filing FFATA report. The Organization failed to attempt to troubleshoot the error, resulting in untimely submission of the report. In addition, the subrecipient agreement does not identify a subaward ID. Organization could not provide support to substantiate a secondary review of the Federal Financial Reports was completed prior to submission. Documentation used to prepare the programmatic report was not retained by management. Effect: Ineffective controls over this area of compliance could result in a reasonable possibility that the Organization would not be in compliance with the federal award as it relates to reporting. Questioned Costs: None reported Context/Sampling: Included under seven award letters of the federal program, four quarterly federal financial reports (SF-425s) and two quarterly federal financial reports (ORR2s) were reviewed in the Organization?s fiscal year. In addition, one final federal financial report and one semi-annual programmatic report was reviewed in the Organization?s fiscal year. A total of 20 reports were filed during the Organization?s fiscal year. The FFATA report for the only subrecipient who received funds through this program was tested. The quantity and subaward obligation errors were noted as follows: (see table in report) A nonstatistical sample of 8 reports were selected for testing out of a population of 21 reports required to be filed in the fiscal year. Repeat Finding from Prior Years: Yes, prior year finding 2021-004 Recommendation: We recommend that management review internal control procedures over reporting to ensure reports are submitted timely and ensure a documented secondary review and approval is completed prior to report submission. Views of Responsible Officials: Management is in agreement.
Finding 2022-004 Administration for Children and Families Federal Assistance Listing/CFDA #93.566, 2201SDRSSS, 10/01/2021 ? 9/30/2024 Refugee and Entrant Assistance ? State Administered Programs Subrecipient Monitoring Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR 200.322 identifies the requirements for all pass-through entities which include the following: A. Evaluate each subrecipient?s risk of noncompliance with federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring, B. Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with federal statues, regulations, and the terms and conditions of the subaward; and that the subaward performance goals are achieved. C. Verify that every subrecipient is audited as required by Subpart F ? Audit Requirements. Condition: The Organization could not provide support to substantiate a secondary review was completed over the evaluation of subrecipient?s risk of noncompliance. Cause: There was no documentation retained to support a secondary review was completed over the evaluation of subrecipient?s risk of noncompliance. Effect: Inadequate controls over this area of compliance including not retaining supporting documentation may make it difficult for the Organization to demonstrate the program is in compliance with laws, regulations, and other compliance requirements. Questioned Costs: None reported Context/Sampling: Only one subrecipient who received funds through this program was tested. Repeat Finding from Prior Years: Yes, prior year finding 2021-003 Recommendation: We recommend that management review the procedures and control processes over subrecipient monitoring to ensure a secondary review is formally documented related to the evaluation of subrecipient?s risk on noncompliance. View of Responsible Officials: Management is in agreement.
Finding 2022-005 Administration for Children and Families Federal Assistance Listing/CFDA #93.566, 2202SDRCMA, 10/01/2021 ? 9/30/2023 Refugee and Entrant Assistance ? State Administered Programs Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: One instance was identified where two check copies were not retained within the case file to support the checks were received by the refugee family. Cause: Management?s internal review of the case file identified the check copies were missing from the case file; however, no steps were followed to ensure copies of checks with refugee signatures were obtained and retained within the case file. Effect: Case file documentation is incomplete to support the payments made to the refugee family were properly received. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 11 participant case files out of 75 participant case files were selected for testing. Repeat Finding from Prior Year: No Recommendation: We recommend that management review the process over eligibility and maintaining case file management be reviewed with applicable program employees to ensure they are aware of grant requirements. View of Responsible Officials: Management is in agreement.