2021-006 Compliance with Uniform Guidance - Procurement; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6 state that a non-Federal entity must review that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded from participation in federal award programs.; Condition: During our testing for procurement compliance, it was determined that the Agency did not verify that vendors charged to the major program are not debarred, suspended, or otherwise excluded from participation in federal award programs.; Questioned Cost: None; Cause: The Agency was not aware of the requirement to review an entity’s status.; Effect: The Agency is not in compliance with 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6. As a result, the Agency could enter into covered transactions with entities that are debarred, suspended, or otherwise excluded from participation in federal award programs.; Perspective Information: Vendors in excess of the $25,000 threshold were reviewed to determine if they are debarred, suspended, or otherwise excluded from participation in federal award programs. None were noted to be ineligible for participation.; Repeat Finding: Yes; Recommendation: We recommend the Agency develop a purchasing policy which encompasses the requirements of the Uniform Guidance, including the requirement to review and document the verification that vendors are not debarred, suspended, or otherwise excluded from participation in federal award programs.; Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the 21/22 fiscal year the Payables Accountant (Jarri Melton) completed a review of the Agency’s vendor list to ensure that the Agency was in compliance with 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6. A hard copy of this review was signed off by the Payables Accountant (Jarri Melton) and the CFO (Jeni Rodriguez), then filed. The Payables Accountant (Jarri Melton) and the CFO (Jeni Rodriguez) will perform this review going forward for any new vendors. Additionally, the Agency’s purchasing policy was updated in fiscal year 21-22, with purchase orders, a purchase order numbering system and tracking. There are monthly closings / reconciling of outstanding purchase orders from the prior month done by the Payables Accountant (Jarri Melton). The Revenue Accountant (Valerie Myers) or the Managed Care Liaison (Ms. Gray McCaffrey) are the team that are able to assign purchase order numbers to the purchase orders and the originals are kept in a folder for the Payables Accountant (Jarri Melton) to retrieve when closing out the month.
2021-006 Compliance with Uniform Guidance - Procurement; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6 state that a non-Federal entity must review that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded from participation in federal award programs.; Condition: During our testing for procurement compliance, it was determined that the Agency did not verify that vendors charged to the major program are not debarred, suspended, or otherwise excluded from participation in federal award programs.; Questioned Cost: None; Cause: The Agency was not aware of the requirement to review an entity’s status.; Effect: The Agency is not in compliance with 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6. As a result, the Agency could enter into covered transactions with entities that are debarred, suspended, or otherwise excluded from participation in federal award programs.; Perspective Information: Vendors in excess of the $25,000 threshold were reviewed to determine if they are debarred, suspended, or otherwise excluded from participation in federal award programs. None were noted to be ineligible for participation.; Repeat Finding: Yes; Recommendation: We recommend the Agency develop a purchasing policy which encompasses the requirements of the Uniform Guidance, including the requirement to review and document the verification that vendors are not debarred, suspended, or otherwise excluded from participation in federal award programs.; Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the 21/22 fiscal year the Payables Accountant (Jarri Melton) completed a review of the Agency’s vendor list to ensure that the Agency was in compliance with 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6. A hard copy of this review was signed off by the Payables Accountant (Jarri Melton) and the CFO (Jeni Rodriguez), then filed. The Payables Accountant (Jarri Melton) and the CFO (Jeni Rodriguez) will perform this review going forward for any new vendors. Additionally, the Agency’s purchasing policy was updated in fiscal year 21-22, with purchase orders, a purchase order numbering system and tracking. There are monthly closings / reconciling of outstanding purchase orders from the prior month done by the Payables Accountant (Jarri Melton). The Revenue Accountant (Valerie Myers) or the Managed Care Liaison (Ms. Gray McCaffrey) are the team that are able to assign purchase order numbers to the purchase orders and the originals are kept in a folder for the Payables Accountant (Jarri Melton) to retrieve when closing out the month.
2021-007 Financial and Performance Reporting; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: Compliance under Unaccompanied Alien Children (Assistance Listing No. 93.676): Financial Reporting Requirements, submission of SF-425, Federal Financial Report.; Condition: During our testing of compliance with the submission of the SF-425, Federal Financial Report, we noted that the annual report that was due April 30, 2021, was submitted July 8, 2021.; Questioned Cost: None; Cause: The Agency did not have a procedure in place to ensure that required reports were completed and submitted by the required due dates.; Effect: All submissions of the quarterly Federal Financial Report (SF-425) and the annual report were not filed by the required deadline.; Perspective Information: Review of timely submission of reporting is performed as part of the audit procedures.; Repeat Finding: Yes; Recommendation: We recommend the Agency implement a procedure or checklist to ensure that the required reports are completed and submitted by the required due dates.; Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the 21/22 fiscal year, the CFO (Jeni Rodriguez) will develop monthly and quarterly closing procedures to aid in the timely closing and filing of reports required by Assistance Listing No. 93.676.
2021-007 Financial and Performance Reporting; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: Compliance under Unaccompanied Alien Children (Assistance Listing No. 93.676): Financial Reporting Requirements, submission of SF-425, Federal Financial Report.; Condition: During our testing of compliance with the submission of the SF-425, Federal Financial Report, we noted that the annual report that was due April 30, 2021, was submitted July 8, 2021.; Questioned Cost: None; Cause: The Agency did not have a procedure in place to ensure that required reports were completed and submitted by the required due dates.; Effect: All submissions of the quarterly Federal Financial Report (SF-425) and the annual report were not filed by the required deadline.; Perspective Information: Review of timely submission of reporting is performed as part of the audit procedures.; Repeat Finding: Yes; Recommendation: We recommend the Agency implement a procedure or checklist to ensure that the required reports are completed and submitted by the required due dates.; Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the 21/22 fiscal year, the CFO (Jeni Rodriguez) will develop monthly and quarterly closing procedures to aid in the timely closing and filing of reports required by Assistance Listing No. 93.676.
2021-008 Submission to the Federal Audit Clearinghouse; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: Single Audits are required to be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report or 9 months after the end of the audit period. For the year ended June 30, 2021, the due date for submission was March 30, 2022.; Condition: The Agency did not submit its Single Audit to the Federal Audit Clearinghouse by March 30, 2022.; Questioned Costs: None; Cause: Due to significant turnover, the Agency was unable to submit the Single Audit to the Federal Audit Clearinghouse in a timely manner.; Effect: The Federal Audit Clearinghouse relies on such submissions to monitor the progress of the program and the use of the federal funds.; Perspective Information: Compliance with filing requirements is reviewed as part of the audit procedures.; Repeat Finding: Yes; Recommendation: The Agency should establish and implement internal controls over financial reporting sufficient to ensure Single Audits are completed and submitted timely.; Views of the Responsible Officials and Planned Corrective Actions: The Board of Directors will request a review of Financial Audits, annually. This will ensure Single Audits are completed and submitted in a timely manner. The Chief Executive Officer [CEO, Executive Director] will meet with the Controller weekly to ensure timely financial reporting. Reports will be provided to the board of Directors monthly.
2021-008 Submission to the Federal Audit Clearinghouse; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: Single Audits are required to be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report or 9 months after the end of the audit period. For the year ended June 30, 2021, the due date for submission was March 30, 2022.; Condition: The Agency did not submit its Single Audit to the Federal Audit Clearinghouse by March 30, 2022.; Questioned Costs: None; Cause: Due to significant turnover, the Agency was unable to submit the Single Audit to the Federal Audit Clearinghouse in a timely manner.; Effect: The Federal Audit Clearinghouse relies on such submissions to monitor the progress of the program and the use of the federal funds.; Perspective Information: Compliance with filing requirements is reviewed as part of the audit procedures.; Repeat Finding: Yes; Recommendation: The Agency should establish and implement internal controls over financial reporting sufficient to ensure Single Audits are completed and submitted timely.; Views of the Responsible Officials and Planned Corrective Actions: The Board of Directors will request a review of Financial Audits, annually. This will ensure Single Audits are completed and submitted in a timely manner. The Chief Executive Officer [CEO, Executive Director] will meet with the Controller weekly to ensure timely financial reporting. Reports will be provided to the board of Directors monthly.
2021-009 Allocation of Salaries and Other Costs; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: The Agency must follow the requirements for allocating salaries as prescribed by the Uniform Guidance and OCFS. The Uniform Guidance section 200.430 requires charges to federal awards for salaries and wages to be based on records that accurately reflect the work performed and include support for the distribution of time the employee works on one or more federal award. In addition, budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards.; Condition: Currently, the Agency charges direct salaries based on time and attendance records, however, other administrative costs such as maintenance, food costs and general administrative salaries were allocated based on the budget established with granting agencies. In addition, there was limited support for how costs were actually allocated.; Questioned Costs: None; Cause: Due to turnover in the Chief Financial Officer position, the previous methodology of allocating costs, which was based on the actual direct costs for the month, was unable to be recreated. There was also no review or reconciliation of expenses in comparison to the budgeted amounts that were approved by the granting agency to ensure that the Agency did not overspend the grant.; Effect: Charges to the federal grants may not be accurate or may be in excess of the amounts budgeted and approved by the granting agency.; Perspective Information: Payroll and disbursement transactions under the Federal program are tested for compliance with the grant documentation as part of the audit procedures.; Repeat Finding: Yes; Recommendation: The Agency should consider creating an allocation methodology for the salary and other costs related to the Federal program that is based on actual results, such as the actual direct costs for the month. The Agency should also develop a tracking methodology to ensure they do not overspend in any areas of the approved budget by the funding agency.; Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the upcoming fiscal year the Controller will work with various departments within the Agency to identify items that are direct charges or allocated based on percentages to the Unaccompanied Alien Children (UAC) grant where possible. Additionally, the Controller will implement quarterly time studies for allocated department salaries to ensure there is supporting documentation. Lastly, during the upcoming fiscal year the Controller will review, on a monthly or quarterly basis, the incurred expenses compared to the UAC approved budget.
2021-009 Allocation of Salaries and Other Costs; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: The Agency must follow the requirements for allocating salaries as prescribed by the Uniform Guidance and OCFS. The Uniform Guidance section 200.430 requires charges to federal awards for salaries and wages to be based on records that accurately reflect the work performed and include support for the distribution of time the employee works on one or more federal award. In addition, budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards.; Condition: Currently, the Agency charges direct salaries based on time and attendance records, however, other administrative costs such as maintenance, food costs and general administrative salaries were allocated based on the budget established with granting agencies. In addition, there was limited support for how costs were actually allocated.; Questioned Costs: None; Cause: Due to turnover in the Chief Financial Officer position, the previous methodology of allocating costs, which was based on the actual direct costs for the month, was unable to be recreated. There was also no review or reconciliation of expenses in comparison to the budgeted amounts that were approved by the granting agency to ensure that the Agency did not overspend the grant.; Effect: Charges to the federal grants may not be accurate or may be in excess of the amounts budgeted and approved by the granting agency.; Perspective Information: Payroll and disbursement transactions under the Federal program are tested for compliance with the grant documentation as part of the audit procedures.; Repeat Finding: Yes; Recommendation: The Agency should consider creating an allocation methodology for the salary and other costs related to the Federal program that is based on actual results, such as the actual direct costs for the month. The Agency should also develop a tracking methodology to ensure they do not overspend in any areas of the approved budget by the funding agency.; Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the upcoming fiscal year the Controller will work with various departments within the Agency to identify items that are direct charges or allocated based on percentages to the Unaccompanied Alien Children (UAC) grant where possible. Additionally, the Controller will implement quarterly time studies for allocated department salaries to ensure there is supporting documentation. Lastly, during the upcoming fiscal year the Controller will review, on a monthly or quarterly basis, the incurred expenses compared to the UAC approved budget.
2021-006 Compliance with Uniform Guidance - Procurement; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6 state that a non-Federal entity must review that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded from participation in federal award programs.; Condition: During our testing for procurement compliance, it was determined that the Agency did not verify that vendors charged to the major program are not debarred, suspended, or otherwise excluded from participation in federal award programs.; Questioned Cost: None; Cause: The Agency was not aware of the requirement to review an entity’s status.; Effect: The Agency is not in compliance with 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6. As a result, the Agency could enter into covered transactions with entities that are debarred, suspended, or otherwise excluded from participation in federal award programs.; Perspective Information: Vendors in excess of the $25,000 threshold were reviewed to determine if they are debarred, suspended, or otherwise excluded from participation in federal award programs. None were noted to be ineligible for participation.; Repeat Finding: Yes; Recommendation: We recommend the Agency develop a purchasing policy which encompasses the requirements of the Uniform Guidance, including the requirement to review and document the verification that vendors are not debarred, suspended, or otherwise excluded from participation in federal award programs.; Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the 21/22 fiscal year the Payables Accountant (Jarri Melton) completed a review of the Agency’s vendor list to ensure that the Agency was in compliance with 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6. A hard copy of this review was signed off by the Payables Accountant (Jarri Melton) and the CFO (Jeni Rodriguez), then filed. The Payables Accountant (Jarri Melton) and the CFO (Jeni Rodriguez) will perform this review going forward for any new vendors. Additionally, the Agency’s purchasing policy was updated in fiscal year 21-22, with purchase orders, a purchase order numbering system and tracking. There are monthly closings / reconciling of outstanding purchase orders from the prior month done by the Payables Accountant (Jarri Melton). The Revenue Accountant (Valerie Myers) or the Managed Care Liaison (Ms. Gray McCaffrey) are the team that are able to assign purchase order numbers to the purchase orders and the originals are kept in a folder for the Payables Accountant (Jarri Melton) to retrieve when closing out the month.
2021-006 Compliance with Uniform Guidance - Procurement; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6 state that a non-Federal entity must review that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded from participation in federal award programs.; Condition: During our testing for procurement compliance, it was determined that the Agency did not verify that vendors charged to the major program are not debarred, suspended, or otherwise excluded from participation in federal award programs.; Questioned Cost: None; Cause: The Agency was not aware of the requirement to review an entity’s status.; Effect: The Agency is not in compliance with 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6. As a result, the Agency could enter into covered transactions with entities that are debarred, suspended, or otherwise excluded from participation in federal award programs.; Perspective Information: Vendors in excess of the $25,000 threshold were reviewed to determine if they are debarred, suspended, or otherwise excluded from participation in federal award programs. None were noted to be ineligible for participation.; Repeat Finding: Yes; Recommendation: We recommend the Agency develop a purchasing policy which encompasses the requirements of the Uniform Guidance, including the requirement to review and document the verification that vendors are not debarred, suspended, or otherwise excluded from participation in federal award programs.; Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the 21/22 fiscal year the Payables Accountant (Jarri Melton) completed a review of the Agency’s vendor list to ensure that the Agency was in compliance with 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6. A hard copy of this review was signed off by the Payables Accountant (Jarri Melton) and the CFO (Jeni Rodriguez), then filed. The Payables Accountant (Jarri Melton) and the CFO (Jeni Rodriguez) will perform this review going forward for any new vendors. Additionally, the Agency’s purchasing policy was updated in fiscal year 21-22, with purchase orders, a purchase order numbering system and tracking. There are monthly closings / reconciling of outstanding purchase orders from the prior month done by the Payables Accountant (Jarri Melton). The Revenue Accountant (Valerie Myers) or the Managed Care Liaison (Ms. Gray McCaffrey) are the team that are able to assign purchase order numbers to the purchase orders and the originals are kept in a folder for the Payables Accountant (Jarri Melton) to retrieve when closing out the month.
2021-007 Financial and Performance Reporting; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: Compliance under Unaccompanied Alien Children (Assistance Listing No. 93.676): Financial Reporting Requirements, submission of SF-425, Federal Financial Report.; Condition: During our testing of compliance with the submission of the SF-425, Federal Financial Report, we noted that the annual report that was due April 30, 2021, was submitted July 8, 2021.; Questioned Cost: None; Cause: The Agency did not have a procedure in place to ensure that required reports were completed and submitted by the required due dates.; Effect: All submissions of the quarterly Federal Financial Report (SF-425) and the annual report were not filed by the required deadline.; Perspective Information: Review of timely submission of reporting is performed as part of the audit procedures.; Repeat Finding: Yes; Recommendation: We recommend the Agency implement a procedure or checklist to ensure that the required reports are completed and submitted by the required due dates.; Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the 21/22 fiscal year, the CFO (Jeni Rodriguez) will develop monthly and quarterly closing procedures to aid in the timely closing and filing of reports required by Assistance Listing No. 93.676.
2021-007 Financial and Performance Reporting; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: Compliance under Unaccompanied Alien Children (Assistance Listing No. 93.676): Financial Reporting Requirements, submission of SF-425, Federal Financial Report.; Condition: During our testing of compliance with the submission of the SF-425, Federal Financial Report, we noted that the annual report that was due April 30, 2021, was submitted July 8, 2021.; Questioned Cost: None; Cause: The Agency did not have a procedure in place to ensure that required reports were completed and submitted by the required due dates.; Effect: All submissions of the quarterly Federal Financial Report (SF-425) and the annual report were not filed by the required deadline.; Perspective Information: Review of timely submission of reporting is performed as part of the audit procedures.; Repeat Finding: Yes; Recommendation: We recommend the Agency implement a procedure or checklist to ensure that the required reports are completed and submitted by the required due dates.; Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the 21/22 fiscal year, the CFO (Jeni Rodriguez) will develop monthly and quarterly closing procedures to aid in the timely closing and filing of reports required by Assistance Listing No. 93.676.
2021-008 Submission to the Federal Audit Clearinghouse; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: Single Audits are required to be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report or 9 months after the end of the audit period. For the year ended June 30, 2021, the due date for submission was March 30, 2022.; Condition: The Agency did not submit its Single Audit to the Federal Audit Clearinghouse by March 30, 2022.; Questioned Costs: None; Cause: Due to significant turnover, the Agency was unable to submit the Single Audit to the Federal Audit Clearinghouse in a timely manner.; Effect: The Federal Audit Clearinghouse relies on such submissions to monitor the progress of the program and the use of the federal funds.; Perspective Information: Compliance with filing requirements is reviewed as part of the audit procedures.; Repeat Finding: Yes; Recommendation: The Agency should establish and implement internal controls over financial reporting sufficient to ensure Single Audits are completed and submitted timely.; Views of the Responsible Officials and Planned Corrective Actions: The Board of Directors will request a review of Financial Audits, annually. This will ensure Single Audits are completed and submitted in a timely manner. The Chief Executive Officer [CEO, Executive Director] will meet with the Controller weekly to ensure timely financial reporting. Reports will be provided to the board of Directors monthly.
2021-008 Submission to the Federal Audit Clearinghouse; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: Single Audits are required to be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report or 9 months after the end of the audit period. For the year ended June 30, 2021, the due date for submission was March 30, 2022.; Condition: The Agency did not submit its Single Audit to the Federal Audit Clearinghouse by March 30, 2022.; Questioned Costs: None; Cause: Due to significant turnover, the Agency was unable to submit the Single Audit to the Federal Audit Clearinghouse in a timely manner.; Effect: The Federal Audit Clearinghouse relies on such submissions to monitor the progress of the program and the use of the federal funds.; Perspective Information: Compliance with filing requirements is reviewed as part of the audit procedures.; Repeat Finding: Yes; Recommendation: The Agency should establish and implement internal controls over financial reporting sufficient to ensure Single Audits are completed and submitted timely.; Views of the Responsible Officials and Planned Corrective Actions: The Board of Directors will request a review of Financial Audits, annually. This will ensure Single Audits are completed and submitted in a timely manner. The Chief Executive Officer [CEO, Executive Director] will meet with the Controller weekly to ensure timely financial reporting. Reports will be provided to the board of Directors monthly.
2021-009 Allocation of Salaries and Other Costs; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: The Agency must follow the requirements for allocating salaries as prescribed by the Uniform Guidance and OCFS. The Uniform Guidance section 200.430 requires charges to federal awards for salaries and wages to be based on records that accurately reflect the work performed and include support for the distribution of time the employee works on one or more federal award. In addition, budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards.; Condition: Currently, the Agency charges direct salaries based on time and attendance records, however, other administrative costs such as maintenance, food costs and general administrative salaries were allocated based on the budget established with granting agencies. In addition, there was limited support for how costs were actually allocated.; Questioned Costs: None; Cause: Due to turnover in the Chief Financial Officer position, the previous methodology of allocating costs, which was based on the actual direct costs for the month, was unable to be recreated. There was also no review or reconciliation of expenses in comparison to the budgeted amounts that were approved by the granting agency to ensure that the Agency did not overspend the grant.; Effect: Charges to the federal grants may not be accurate or may be in excess of the amounts budgeted and approved by the granting agency.; Perspective Information: Payroll and disbursement transactions under the Federal program are tested for compliance with the grant documentation as part of the audit procedures.; Repeat Finding: Yes; Recommendation: The Agency should consider creating an allocation methodology for the salary and other costs related to the Federal program that is based on actual results, such as the actual direct costs for the month. The Agency should also develop a tracking methodology to ensure they do not overspend in any areas of the approved budget by the funding agency.; Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the upcoming fiscal year the Controller will work with various departments within the Agency to identify items that are direct charges or allocated based on percentages to the Unaccompanied Alien Children (UAC) grant where possible. Additionally, the Controller will implement quarterly time studies for allocated department salaries to ensure there is supporting documentation. Lastly, during the upcoming fiscal year the Controller will review, on a monthly or quarterly basis, the incurred expenses compared to the UAC approved budget.
2021-009 Allocation of Salaries and Other Costs; Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services.; Criteria: The Agency must follow the requirements for allocating salaries as prescribed by the Uniform Guidance and OCFS. The Uniform Guidance section 200.430 requires charges to federal awards for salaries and wages to be based on records that accurately reflect the work performed and include support for the distribution of time the employee works on one or more federal award. In addition, budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards.; Condition: Currently, the Agency charges direct salaries based on time and attendance records, however, other administrative costs such as maintenance, food costs and general administrative salaries were allocated based on the budget established with granting agencies. In addition, there was limited support for how costs were actually allocated.; Questioned Costs: None; Cause: Due to turnover in the Chief Financial Officer position, the previous methodology of allocating costs, which was based on the actual direct costs for the month, was unable to be recreated. There was also no review or reconciliation of expenses in comparison to the budgeted amounts that were approved by the granting agency to ensure that the Agency did not overspend the grant.; Effect: Charges to the federal grants may not be accurate or may be in excess of the amounts budgeted and approved by the granting agency.; Perspective Information: Payroll and disbursement transactions under the Federal program are tested for compliance with the grant documentation as part of the audit procedures.; Repeat Finding: Yes; Recommendation: The Agency should consider creating an allocation methodology for the salary and other costs related to the Federal program that is based on actual results, such as the actual direct costs for the month. The Agency should also develop a tracking methodology to ensure they do not overspend in any areas of the approved budget by the funding agency.; Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the upcoming fiscal year the Controller will work with various departments within the Agency to identify items that are direct charges or allocated based on percentages to the Unaccompanied Alien Children (UAC) grant where possible. Additionally, the Controller will implement quarterly time studies for allocated department salaries to ensure there is supporting documentation. Lastly, during the upcoming fiscal year the Controller will review, on a monthly or quarterly basis, the incurred expenses compared to the UAC approved budget.