FAC Explorer

Audit 301123

FY End
2023-06-30
Total Expended
$3.03M
Findings
6
Programs
2
Organization: Do Good Multnomah (OR)
Year: 2023 Accepted: 2024-03-29
Auditor: McDonald Jacobs

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
390225 2023-001 Material Weakness Yes AB
390226 2023-002 Significant Deficiency Yes AB
390227 2023-003 Significant Deficiency - L
966667 2023-001 Material Weakness Yes AB
966668 2023-002 Significant Deficiency Yes AB
966669 2023-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.98M Yes 3
14.231 Emergency Solutions Grant Program $47,486 - 0

Contacts

Name Title Type
JSS8WFGNJL51 Stephanie Vanrheen Auditee
5034365757 Jessica Yoder Auditor
No contacts on file

Notes to SEFA

Title: 1. Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes all federal grant activity of Do Good Multnomah under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Do Good Multnomah, it is not intended to and does not present the financial position, changes in net assets or cash flows of Do Good Multnomah. De Minimis Rate Used: N Rate Explanation: Do Good Multnomah has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes all federal grant activity of Do Good Multnomah under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Do Good Multnomah, it is not intended to and does not present the financial position, changes in net assets or cash flows of Do Good Multnomah.
Title: 2. Expenditures Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes all federal grant activity of Do Good Multnomah under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Do Good Multnomah, it is not intended to and does not present the financial position, changes in net assets or cash flows of Do Good Multnomah. De Minimis Rate Used: N Rate Explanation: Do Good Multnomah has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Do Good Multnomah has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding #2023-001 Type: Material weakness over allowable costs Assistance Listing: 21.027 Coronavirus State and Local Recovery Funds Requirement: Invoices should be approved before payment. In addition, per Uniform Grant Guidance 200.430, charges to federal awards for salaries and wages must be based on actual work performed, supported by internal controls, and part of the official records of the Organization. Condition/Context: Invoices (40 out of 40) and timesheets/payroll records (5 out of 40) approvals could not be substantiated. Cause: Policies and oversight were not in place for formal documentation of invoices and timesheets. Effect: Improper or inaccurate amounts could be paid or charged to contracts. Questioned Costs: None. Recommendation: We recommend that supervisors sign off on invoices and timesheets during the process of review. Procedures should be put in place to ensure reviews are completed timely. Management Response: Management has expanded the finance team and with the guidance of a nonprofit finance consultant additional roles are set to be established so that there is support to be able to be able to adequately review and approve invoices, as well as train and hold accountability with supervisors for payroll approval.
Finding 2023-002
Finding #2023-002: Type: Significant deficiency over allowable costs Type: Immaterial noncompliance Assistance Listing: 21.027 Coronavirus State and Local Recovery Funds Requirement: Amounts charged to contract should have adequate documentation supporting the amounts billed. Condition/Context: Out of a sample of 40 selected for testing, 3 expenses were missing invoices or receipts. Cause: The Organization’s record retention and filing policies were not consistently followed. Effect: Improper or inaccurate amounts could be paid or charged to contracts. Questioned Costs: None. Recommendation: We recommend retaining all supporting documentation for payments. Payments should not be initiated without documentation to support the expense. Management Response: Management will implement additional levels of approval and oversight for point-ofsale and invoice spending to ensure that receipts are captured and retained correctly, and that at invoices are reviewed and approved before payment. Management will also provide additional training for spenders on best practices of recording and maintaining records. Management will be consolidating their supply chain so that spenders are able to procure most supplies through one vendor, which will have reporting and tracking capabilities. Management will also be making significant changes to how mileage reimbursement is documented and approved.
Finding 2023-003
Finding #2023-003: Type: Significant deficiency over reporting Assistance Listing: 21.027 Coronavirus State and Local Recovery Funds Requirement: There should be controls over the preparation and submission of required reports. Condition/Context: Four out of four reports tested were prepared and submitted by the same individual without supervisory review and approval before submission. Cause: This oversight control is not part of the Organization’s policies. Effect: Reports may contain inaccurate information. Questioned Costs: None. Recommendation: We recommend documented review and approval of reports before submission by a member of management different from the preparer. Management Response: The finance team has been expanded and with the guidance of a nonprofit finance consultant additional roles are set to be established so that invoices can be prepared by someone other than the approver. In the immediate interim, invoices will be reviewed and signed by the CEO before submission by the CFO.
Finding 2023-001
Finding #2023-001 Type: Material weakness over allowable costs Assistance Listing: 21.027 Coronavirus State and Local Recovery Funds Requirement: Invoices should be approved before payment. In addition, per Uniform Grant Guidance 200.430, charges to federal awards for salaries and wages must be based on actual work performed, supported by internal controls, and part of the official records of the Organization. Condition/Context: Invoices (40 out of 40) and timesheets/payroll records (5 out of 40) approvals could not be substantiated. Cause: Policies and oversight were not in place for formal documentation of invoices and timesheets. Effect: Improper or inaccurate amounts could be paid or charged to contracts. Questioned Costs: None. Recommendation: We recommend that supervisors sign off on invoices and timesheets during the process of review. Procedures should be put in place to ensure reviews are completed timely. Management Response: Management has expanded the finance team and with the guidance of a nonprofit finance consultant additional roles are set to be established so that there is support to be able to be able to adequately review and approve invoices, as well as train and hold accountability with supervisors for payroll approval.
Finding 2023-002
Finding #2023-002: Type: Significant deficiency over allowable costs Type: Immaterial noncompliance Assistance Listing: 21.027 Coronavirus State and Local Recovery Funds Requirement: Amounts charged to contract should have adequate documentation supporting the amounts billed. Condition/Context: Out of a sample of 40 selected for testing, 3 expenses were missing invoices or receipts. Cause: The Organization’s record retention and filing policies were not consistently followed. Effect: Improper or inaccurate amounts could be paid or charged to contracts. Questioned Costs: None. Recommendation: We recommend retaining all supporting documentation for payments. Payments should not be initiated without documentation to support the expense. Management Response: Management will implement additional levels of approval and oversight for point-ofsale and invoice spending to ensure that receipts are captured and retained correctly, and that at invoices are reviewed and approved before payment. Management will also provide additional training for spenders on best practices of recording and maintaining records. Management will be consolidating their supply chain so that spenders are able to procure most supplies through one vendor, which will have reporting and tracking capabilities. Management will also be making significant changes to how mileage reimbursement is documented and approved.
Finding 2023-003
Finding #2023-003: Type: Significant deficiency over reporting Assistance Listing: 21.027 Coronavirus State and Local Recovery Funds Requirement: There should be controls over the preparation and submission of required reports. Condition/Context: Four out of four reports tested were prepared and submitted by the same individual without supervisory review and approval before submission. Cause: This oversight control is not part of the Organization’s policies. Effect: Reports may contain inaccurate information. Questioned Costs: None. Recommendation: We recommend documented review and approval of reports before submission by a member of management different from the preparer. Management Response: The finance team has been expanded and with the guidance of a nonprofit finance consultant additional roles are set to be established so that invoices can be prepared by someone other than the approver. In the immediate interim, invoices will be reviewed and signed by the CEO before submission by the CFO.