Audit 295367

Finding No. 2023-002 – Salaries and Benefits Not Supported by Proper Time and Effort Documentation Federal Program: Crime Victim Assistance Project No: 220001 and 2020-V2-GX-0017 CFDA No: 16.575 Passed Through: Illinois Coalition Against Domestic Violence and Illinois Coalition Against Sexual Assault Federal Agency: U.S. Department of Justice Criteria/Specific Requirement: Employees of Survivor Empowerment Center, Inc. are required to document their time and effort working on federal programs. Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires charges for salaries and benefits to be supported by a system of internal control which provides reasonable assurance that charges are accurate, allowable, and properly allocated. Documentation records should reasonably reflect the total activity for which the employee is compensated, not exceeding 100% of compensated activities, and should encompass both federally assisted and non-federally assisted activities. It further states that budget estimates alone do not qualify as support for salary and benefit charges to a federal award. Significant changes in the corresponding work activity should be identified and entered into the accounting records in a timely manner. All necessary adjustments must be made such that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition: During our testwork, we noted the following: • One employee’s timesheets did not reflect the correct allocation percentages determined by the Organization, • Five employees did not have a time and effort certification submitted during the 4th quarter of 2023, and • Two employee timesheets were not signed by the employee. Questioned Costs: None Context: Time and effort documentation was not correctly maintained for six of the seventeen employees tested. Effect: Although time and effort documentation was maintained for employees, there is an increased risk that the salary and benefit costs charged to the Crime Victim Assistance program does not reflect the actual time worked on the programs. Cause: Lack of oversight over the implementation of time and effort documentation. Auditors’ Recommendation: The Survivor Empowerment Center, Inc. should implement a review process over time and effort documentation to ensure that all employees charged to the grant have proper documentation. Management’s Response: The Survivor Empowerment Center, Inc. had turnover in its HR/Payroll position a couple of times between July 1, 2022 - June 30, 2023. After many months of working with the new HR/Payroll employee, it was determined the employee did not have adequate skills for the position. The Survivor Empowerment Center, Inc. searched for months to fill the position with a qualified employee. In the meantime, the Fiscal Manager continued with the payroll duties and the Assistant Director continued with the HR component of the position. With many hands in the process, all of the above resulted in the oversight of the changing of the allocation on the timesheets. The position for the HR Payroll Specialist was filled in February of 2024.

Finding No. 2023-002 – Salaries and Benefits Not Supported by Proper Time and Effort Documentation Federal Program: Crime Victim Assistance Project No: 220001 and 2020-V2-GX-0017 CFDA No: 16.575 Passed Through: Illinois Coalition Against Domestic Violence and Illinois Coalition Against Sexual Assault Federal Agency: U.S. Department of Justice Criteria/Specific Requirement: Employees of Survivor Empowerment Center, Inc. are required to document their time and effort working on federal programs. Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires charges for salaries and benefits to be supported by a system of internal control which provides reasonable assurance that charges are accurate, allowable, and properly allocated. Documentation records should reasonably reflect the total activity for which the employee is compensated, not exceeding 100% of compensated activities, and should encompass both federally assisted and non-federally assisted activities. It further states that budget estimates alone do not qualify as support for salary and benefit charges to a federal award. Significant changes in the corresponding work activity should be identified and entered into the accounting records in a timely manner. All necessary adjustments must be made such that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition: During our testwork, we noted the following: • One employee’s timesheets did not reflect the correct allocation percentages determined by the Organization, • Five employees did not have a time and effort certification submitted during the 4th quarter of 2023, and • Two employee timesheets were not signed by the employee. Questioned Costs: None Context: Time and effort documentation was not correctly maintained for six of the seventeen employees tested. Effect: Although time and effort documentation was maintained for employees, there is an increased risk that the salary and benefit costs charged to the Crime Victim Assistance program does not reflect the actual time worked on the programs. Cause: Lack of oversight over the implementation of time and effort documentation. Auditors’ Recommendation: The Survivor Empowerment Center, Inc. should implement a review process over time and effort documentation to ensure that all employees charged to the grant have proper documentation. Management’s Response: The Survivor Empowerment Center, Inc. had turnover in its HR/Payroll position a couple of times between July 1, 2022 - June 30, 2023. After many months of working with the new HR/Payroll employee, it was determined the employee did not have adequate skills for the position. The Survivor Empowerment Center, Inc. searched for months to fill the position with a qualified employee. In the meantime, the Fiscal Manager continued with the payroll duties and the Assistant Director continued with the HR component of the position. With many hands in the process, all of the above resulted in the oversight of the changing of the allocation on the timesheets. The position for the HR Payroll Specialist was filled in February of 2024.

Finding No. 2023-002 – Salaries and Benefits Not Supported by Proper Time and Effort Documentation Federal Program: Crime Victim Assistance Project No: 220001 and 2020-V2-GX-0017 CFDA No: 16.575 Passed Through: Illinois Coalition Against Domestic Violence and Illinois Coalition Against Sexual Assault Federal Agency: U.S. Department of Justice Criteria/Specific Requirement: Employees of Survivor Empowerment Center, Inc. are required to document their time and effort working on federal programs. Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires charges for salaries and benefits to be supported by a system of internal control which provides reasonable assurance that charges are accurate, allowable, and properly allocated. Documentation records should reasonably reflect the total activity for which the employee is compensated, not exceeding 100% of compensated activities, and should encompass both federally assisted and non-federally assisted activities. It further states that budget estimates alone do not qualify as support for salary and benefit charges to a federal award. Significant changes in the corresponding work activity should be identified and entered into the accounting records in a timely manner. All necessary adjustments must be made such that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition: During our testwork, we noted the following: • One employee’s timesheets did not reflect the correct allocation percentages determined by the Organization, • Five employees did not have a time and effort certification submitted during the 4th quarter of 2023, and • Two employee timesheets were not signed by the employee. Questioned Costs: None Context: Time and effort documentation was not correctly maintained for six of the seventeen employees tested. Effect: Although time and effort documentation was maintained for employees, there is an increased risk that the salary and benefit costs charged to the Crime Victim Assistance program does not reflect the actual time worked on the programs. Cause: Lack of oversight over the implementation of time and effort documentation. Auditors’ Recommendation: The Survivor Empowerment Center, Inc. should implement a review process over time and effort documentation to ensure that all employees charged to the grant have proper documentation. Management’s Response: The Survivor Empowerment Center, Inc. had turnover in its HR/Payroll position a couple of times between July 1, 2022 - June 30, 2023. After many months of working with the new HR/Payroll employee, it was determined the employee did not have adequate skills for the position. The Survivor Empowerment Center, Inc. searched for months to fill the position with a qualified employee. In the meantime, the Fiscal Manager continued with the payroll duties and the Assistant Director continued with the HR component of the position. With many hands in the process, all of the above resulted in the oversight of the changing of the allocation on the timesheets. The position for the HR Payroll Specialist was filled in February of 2024.

Finding No. 2023-002 – Salaries and Benefits Not Supported by Proper Time and Effort Documentation Federal Program: Crime Victim Assistance Project No: 220001 and 2020-V2-GX-0017 CFDA No: 16.575 Passed Through: Illinois Coalition Against Domestic Violence and Illinois Coalition Against Sexual Assault Federal Agency: U.S. Department of Justice Criteria/Specific Requirement: Employees of Survivor Empowerment Center, Inc. are required to document their time and effort working on federal programs. Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires charges for salaries and benefits to be supported by a system of internal control which provides reasonable assurance that charges are accurate, allowable, and properly allocated. Documentation records should reasonably reflect the total activity for which the employee is compensated, not exceeding 100% of compensated activities, and should encompass both federally assisted and non-federally assisted activities. It further states that budget estimates alone do not qualify as support for salary and benefit charges to a federal award. Significant changes in the corresponding work activity should be identified and entered into the accounting records in a timely manner. All necessary adjustments must be made such that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition: During our testwork, we noted the following: • One employee’s timesheets did not reflect the correct allocation percentages determined by the Organization, • Five employees did not have a time and effort certification submitted during the 4th quarter of 2023, and • Two employee timesheets were not signed by the employee. Questioned Costs: None Context: Time and effort documentation was not correctly maintained for six of the seventeen employees tested. Effect: Although time and effort documentation was maintained for employees, there is an increased risk that the salary and benefit costs charged to the Crime Victim Assistance program does not reflect the actual time worked on the programs. Cause: Lack of oversight over the implementation of time and effort documentation. Auditors’ Recommendation: The Survivor Empowerment Center, Inc. should implement a review process over time and effort documentation to ensure that all employees charged to the grant have proper documentation. Management’s Response: The Survivor Empowerment Center, Inc. had turnover in its HR/Payroll position a couple of times between July 1, 2022 - June 30, 2023. After many months of working with the new HR/Payroll employee, it was determined the employee did not have adequate skills for the position. The Survivor Empowerment Center, Inc. searched for months to fill the position with a qualified employee. In the meantime, the Fiscal Manager continued with the payroll duties and the Assistant Director continued with the HR component of the position. With many hands in the process, all of the above resulted in the oversight of the changing of the allocation on the timesheets. The position for the HR Payroll Specialist was filled in February of 2024.