Audit 299575

Condition: Certain check sequences were backdated during the year. Same finding as 2023-002. Criteria: Grant expenditures for the Community Services Block Grant must be incurred before they can be reimbursed by grantor. To the extent possible, sufficient liquidity should be maintained to ensure funds are expended before reimbursement from the CSBG grantor is requested. Cause: The Organization could not provide an explanation for why the backdating of checks occurred. Effects: As a result, in some cases, reimbursement of grant expenditures for the Community Services Block Grant were requested before they were actually paid out of cash. Cash and accounts payable balances were also materially misstated. Recommendation: Checks should be dated the day they are cut and entered in the accounting system as of that date to ensure expenses are recorded in the proper period and grant reimbursements are not made until after the expense is paid. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and will implement the recommended procedures as soon as possible.

Condition: Organization does not have personnel available with qualifications and training to properly charge the CSBG grant for allowable expenditures. Same finding as 2023-004. Criteria: One of the criteria established under the Uniform Guidance for the Community Services Block Grant is for the Organization to establish adequate controls to ensure the Allowable Costs requirements for the Uniform Guidance are followed. Cause: Accounting personnel did not have sufficient understanding and training to properly request reimbursements from the grantor. Effects: As a result, the wrong percentage was used to calculate certain employee salaries charged to the CSBG grant, resulting in the Organization improperly reporting grant expenses and receiving more grant funding than was allowable under the grant. These overcharged amounts, totaling $13,637, were owed back to the grantor as of year-end. Recommendation: The auditor recommends that additional sufficient understanding and training be obtained by accounting department personnel so they can properly request reimbursements from grantors. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and is working to establish a clear understanding of the grant reimbursement process to ensure the proper amounts are charged to each grant.

Condition: Out of thirty participants tested, auditor determined three of the participants had their annual income calculated incorrectly. All three would have otherwise not been eligible for aid based on federal poverty guidelines. Criteria: One of the criteria established under the Uniform Guidance for the Community Services Block Grant is for the Organization to establish adequate controls to ensure the Eligibility requirements for the Uniform Guidance are followed. Cause: Some grant coordinators did not have sufficient understanding and training to properly calculate and document eligibility for the CSBG program. Effects: As a result, certain ineligible participants were allowed to enroll in the program. Recommendation: The auditor recommends that additional sufficient understanding and training be obtained by the grant coordinators to ensure eligibility requirements for the Uniform Guidance are followed. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and is working to establish a clear understanding of the grant eligibility requirements with the grant coordinators to ensure eligibility requirements for the Uniform Guidance are followed.

Condition: Certain check sequences were backdated during the year. Same finding as 2023-002. Criteria: Grant expenditures for the Community Services Block Grant must be incurred before they can be reimbursed by grantor. To the extent possible, sufficient liquidity should be maintained to ensure funds are expended before reimbursement from the CSBG grantor is requested. Cause: The Organization could not provide an explanation for why the backdating of checks occurred. Effects: As a result, in some cases, reimbursement of grant expenditures for the Community Services Block Grant were requested before they were actually paid out of cash. Cash and accounts payable balances were also materially misstated. Recommendation: Checks should be dated the day they are cut and entered in the accounting system as of that date to ensure expenses are recorded in the proper period and grant reimbursements are not made until after the expense is paid. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and will implement the recommended procedures as soon as possible.

Condition: Organization does not have personnel available with qualifications and training to properly charge the CSBG grant for allowable expenditures. Same finding as 2023-004. Criteria: One of the criteria established under the Uniform Guidance for the Community Services Block Grant is for the Organization to establish adequate controls to ensure the Allowable Costs requirements for the Uniform Guidance are followed. Cause: Accounting personnel did not have sufficient understanding and training to properly request reimbursements from the grantor. Effects: As a result, the wrong percentage was used to calculate certain employee salaries charged to the CSBG grant, resulting in the Organization improperly reporting grant expenses and receiving more grant funding than was allowable under the grant. These overcharged amounts, totaling $13,637, were owed back to the grantor as of year-end. Recommendation: The auditor recommends that additional sufficient understanding and training be obtained by accounting department personnel so they can properly request reimbursements from grantors. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and is working to establish a clear understanding of the grant reimbursement process to ensure the proper amounts are charged to each grant.

Condition: Out of thirty participants tested, auditor determined three of the participants had their annual income calculated incorrectly. All three would have otherwise not been eligible for aid based on federal poverty guidelines. Criteria: One of the criteria established under the Uniform Guidance for the Community Services Block Grant is for the Organization to establish adequate controls to ensure the Eligibility requirements for the Uniform Guidance are followed. Cause: Some grant coordinators did not have sufficient understanding and training to properly calculate and document eligibility for the CSBG program. Effects: As a result, certain ineligible participants were allowed to enroll in the program. Recommendation: The auditor recommends that additional sufficient understanding and training be obtained by the grant coordinators to ensure eligibility requirements for the Uniform Guidance are followed. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and is working to establish a clear understanding of the grant eligibility requirements with the grant coordinators to ensure eligibility requirements for the Uniform Guidance are followed.