Audit 290308

2023-002 (Significant Deficiency) – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Program: AL 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: Per Uniform Guidance 2 CFR section 200.438, costs for entertainment including social activities and any associated costs are unallowable. The “Basic Guidelines” section of 2 CFR Part 230, Attachment B Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the Organization. Condition: Food for an employee Christmas Party was included in the population of expenses allocated to the grant. One payroll timesheet tested was missing the approval signature. Cause: Management oversight Effect: The Organization charged unallowable expenses and a payroll expense that was missing approval documentation to the grant. Context: As part of the single audit testing, 40 transactions were selected for testing. One invoice tested was for food costs for a Christmas Party. This is considered unallowable costs as it is costs for a social activity. One payroll timesheet tested was missing the approval signature. Questioned Costs: Immaterial Repeat Finding: No Recommendation: The Organization should review their policies and procedures for allocating expenses to grants and only charge allowable expenses and ensure that all expenses charged are properly approved and the approval documentation is maintained. View of Responsible Officials: Management agrees with the recommendation and will review their procedures for allocating expenses to grants to ensure only allowable expenses are charged to the grant and all expenses are properly approved and the approval documentation is maintained.

2023-002 (Significant Deficiency) – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Program: AL 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: Per Uniform Guidance 2 CFR section 200.438, costs for entertainment including social activities and any associated costs are unallowable. The “Basic Guidelines” section of 2 CFR Part 230, Attachment B Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the Organization. Condition: Food for an employee Christmas Party was included in the population of expenses allocated to the grant. One payroll timesheet tested was missing the approval signature. Cause: Management oversight Effect: The Organization charged unallowable expenses and a payroll expense that was missing approval documentation to the grant. Context: As part of the single audit testing, 40 transactions were selected for testing. One invoice tested was for food costs for a Christmas Party. This is considered unallowable costs as it is costs for a social activity. One payroll timesheet tested was missing the approval signature. Questioned Costs: Immaterial Repeat Finding: No Recommendation: The Organization should review their policies and procedures for allocating expenses to grants and only charge allowable expenses and ensure that all expenses charged are properly approved and the approval documentation is maintained. View of Responsible Officials: Management agrees with the recommendation and will review their procedures for allocating expenses to grants to ensure only allowable expenses are charged to the grant and all expenses are properly approved and the approval documentation is maintained.