Audit 312222

FY End
2022-06-30
Total Expended
$10.04M
Findings
52
Programs
12
Year: 2022 Accepted: 2023-09-07

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
419309 2022-002 Material Weakness Yes L
419310 2022-004 Material Weakness - L
419311 2022-004 Material Weakness - L
419312 2022-004 Material Weakness - L
419313 2022-004 Material Weakness - L
419314 2022-004 Material Weakness - L
419315 2022-002 Material Weakness Yes L
419316 2022-002 Material Weakness Yes L
419317 2022-004 Material Weakness - L
419318 2022-002 Material Weakness Yes L
419319 2022-004 Material Weakness - L
419320 2022-004 Material Weakness - L
419321 2022-004 Material Weakness - L
419322 2022-004 Material Weakness - L
419323 2022-004 Material Weakness - L
419324 2022-004 Material Weakness - L
419325 2022-004 Material Weakness - L
419326 2022-004 Material Weakness - L
419327 2022-002 Material Weakness Yes L
419328 2022-004 Material Weakness - L
419329 2022-001 Material Weakness Yes L
419330 2022-001 Material Weakness Yes L
419331 2022-002 Material Weakness Yes L
419332 2022-002 Material Weakness Yes L
419333 2022-003 - Yes C
419334 2022-003 - Yes C
995751 2022-002 Material Weakness Yes L
995752 2022-004 Material Weakness - L
995753 2022-004 Material Weakness - L
995754 2022-004 Material Weakness - L
995755 2022-004 Material Weakness - L
995756 2022-004 Material Weakness - L
995757 2022-002 Material Weakness Yes L
995758 2022-002 Material Weakness Yes L
995759 2022-004 Material Weakness - L
995760 2022-002 Material Weakness Yes L
995761 2022-004 Material Weakness - L
995762 2022-004 Material Weakness - L
995763 2022-004 Material Weakness - L
995764 2022-004 Material Weakness - L
995765 2022-004 Material Weakness - L
995766 2022-004 Material Weakness - L
995767 2022-004 Material Weakness - L
995768 2022-004 Material Weakness - L
995769 2022-002 Material Weakness Yes L
995770 2022-004 Material Weakness - L
995771 2022-001 Material Weakness Yes L
995772 2022-001 Material Weakness Yes L
995773 2022-002 Material Weakness Yes L
995774 2022-002 Material Weakness Yes L
995775 2022-003 - Yes C
995776 2022-003 - Yes C

Programs

ALN Program Spent Major Findings
21.023 Emergency Rental Assistance Program $8.27M Yes 2
21.026 Arpa- Haf Counseling Sustainability Grant $249,949 - 2
21.027 Ulms Young Adult Shelter $214,025 - 1
21.019 Coronavirus Relief Fund $124,710 - 1
17.258 Wioa Title 1b Adult Services, Career Services Program $122,043 - 2
17.259 Wioa Py21/fy22- Title 1b Youth Services, Out-of-School $110,859 - 1
16.726 Project Ready Mentor Vi $98,113 - 1
17.261 Pathways for Youth $67,615 - 1
93.185 Cdc Vaccine Equity $41,000 - 1
99.U19 Housing Stability Counseling Program $37,128 - 1
14.316 Housing Counsing Counseling Training Program $30,022 - 1
97.024 Emergency Food and Shelter Program $13,158 - 2

Contacts

Name Title Type
PJADH2CJKML7 Mansour Camara Auditee
2067756229 Leslie Sesser Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Super Circular, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Urban League of Metropolitan Seattle under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of Urban League of Metropolitan Seattle, it is not intended to and does not present the financial position, changes in net assets or cash flows of Urban League of Metropolitan Seattle.

Finding Details

2022-002 Reporting ? Schedule of Expenditures of Federal AwardsIdentification as a Repeat Finding: Repeat of Finding 2021-004.Finding:The SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards.Criteria:The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs.Sample Size and Population: N/ACondition and Context:The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following:? 21.019 Coronavirus Relief Fund excluded. Contracts 4120 & 8328 passed through by the United Way of King County & the contract passed through by the Washington State Housing Finance Commission (WSHFC) totaled $205,822 but were not included in the original SEFA provided.? 21.023 Emergency Rental Assistance Program Contract 9395 passed through by the United Way of King County understated by $341,000.? 21.023 Emergency Rental Assistance Program Contract excluded. Contract 8366 passed through by the United Way of King County included $8,274,601 of federal funds that were not included on the original SEFA provided for audit.? 21.026 Homeowner Assistance Fund contact #HAF0025 passed through by WSHFC overstated by $124,710.? 91.024 Emergency Food and Shelter contract #889000-033 passed through by United Way of King County overstated by $66,542.? 17.258 WIOA Title 1b Adult Services contract #21-115-ADU passed through by Workforce Development Council of King County not identified as part of the WIOA Cluster.Additionally, the prior year SEFA was overstated by $704,017 for the 20.019 Coronavirus Relief Fund Contracts #4120 and #8328 passed through by the United Way of King County due to the accounting error identified in Finding 2022-001.Effect:Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs.Cause:As noted in Finding 2022-001, the Organization did not correctly account for advanced federal funds and as noted in Finding 2022-003, the Organization has not implemented a policy for advanced federal funds that complies with 2 CFR 200.305. These gaps in internal control resulted in cut-off errors in SEFA reporting for FY21 & FY22. Additionally, the Organization has not been applying the guidance of Section 200.502 of the Uniform Guidance in preparing the SEFA. Lastly, the program manager of the pass through agency of the 21.023 Emergency Rental Assistance Program Contract #8366 incorrectly informed the Organization that it had no responsibility for reporting the contract as a subrecipient of federal funds.Recommendation:The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to completeness and accuracy in SEFA reporting.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-002 Reporting ? Schedule of Expenditures of Federal AwardsIdentification as a Repeat Finding: Repeat of Finding 2021-004.Finding:The SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards.Criteria:The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs.Sample Size and Population: N/ACondition and Context:The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following:? 21.019 Coronavirus Relief Fund excluded. Contracts 4120 & 8328 passed through by the United Way of King County & the contract passed through by the Washington State Housing Finance Commission (WSHFC) totaled $205,822 but were not included in the original SEFA provided.? 21.023 Emergency Rental Assistance Program Contract 9395 passed through by the United Way of King County understated by $341,000.? 21.023 Emergency Rental Assistance Program Contract excluded. Contract 8366 passed through by the United Way of King County included $8,274,601 of federal funds that were not included on the original SEFA provided for audit.? 21.026 Homeowner Assistance Fund contact #HAF0025 passed through by WSHFC overstated by $124,710.? 91.024 Emergency Food and Shelter contract #889000-033 passed through by United Way of King County overstated by $66,542.? 17.258 WIOA Title 1b Adult Services contract #21-115-ADU passed through by Workforce Development Council of King County not identified as part of the WIOA Cluster.Additionally, the prior year SEFA was overstated by $704,017 for the 20.019 Coronavirus Relief Fund Contracts #4120 and #8328 passed through by the United Way of King County due to the accounting error identified in Finding 2022-001.Effect:Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs.Cause:As noted in Finding 2022-001, the Organization did not correctly account for advanced federal funds and as noted in Finding 2022-003, the Organization has not implemented a policy for advanced federal funds that complies with 2 CFR 200.305. These gaps in internal control resulted in cut-off errors in SEFA reporting for FY21 & FY22. Additionally, the Organization has not been applying the guidance of Section 200.502 of the Uniform Guidance in preparing the SEFA. Lastly, the program manager of the pass through agency of the 21.023 Emergency Rental Assistance Program Contract #8366 incorrectly informed the Organization that it had no responsibility for reporting the contract as a subrecipient of federal funds.Recommendation:The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to completeness and accuracy in SEFA reporting.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-002 Reporting ? Schedule of Expenditures of Federal AwardsIdentification as a Repeat Finding: Repeat of Finding 2021-004.Finding:The SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards.Criteria:The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs.Sample Size and Population: N/ACondition and Context:The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following:? 21.019 Coronavirus Relief Fund excluded. Contracts 4120 & 8328 passed through by the United Way of King County & the contract passed through by the Washington State Housing Finance Commission (WSHFC) totaled $205,822 but were not included in the original SEFA provided.? 21.023 Emergency Rental Assistance Program Contract 9395 passed through by the United Way of King County understated by $341,000.? 21.023 Emergency Rental Assistance Program Contract excluded. Contract 8366 passed through by the United Way of King County included $8,274,601 of federal funds that were not included on the original SEFA provided for audit.? 21.026 Homeowner Assistance Fund contact #HAF0025 passed through by WSHFC overstated by $124,710.? 91.024 Emergency Food and Shelter contract #889000-033 passed through by United Way of King County overstated by $66,542.? 17.258 WIOA Title 1b Adult Services contract #21-115-ADU passed through by Workforce Development Council of King County not identified as part of the WIOA Cluster.Additionally, the prior year SEFA was overstated by $704,017 for the 20.019 Coronavirus Relief Fund Contracts #4120 and #8328 passed through by the United Way of King County due to the accounting error identified in Finding 2022-001.Effect:Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs.Cause:As noted in Finding 2022-001, the Organization did not correctly account for advanced federal funds and as noted in Finding 2022-003, the Organization has not implemented a policy for advanced federal funds that complies with 2 CFR 200.305. These gaps in internal control resulted in cut-off errors in SEFA reporting for FY21 & FY22. Additionally, the Organization has not been applying the guidance of Section 200.502 of the Uniform Guidance in preparing the SEFA. Lastly, the program manager of the pass through agency of the 21.023 Emergency Rental Assistance Program Contract #8366 incorrectly informed the Organization that it had no responsibility for reporting the contract as a subrecipient of federal funds.Recommendation:The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to completeness and accuracy in SEFA reporting.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-002 Reporting ? Schedule of Expenditures of Federal AwardsIdentification as a Repeat Finding: Repeat of Finding 2021-004.Finding:The SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards.Criteria:The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs.Sample Size and Population: N/ACondition and Context:The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following:? 21.019 Coronavirus Relief Fund excluded. Contracts 4120 & 8328 passed through by the United Way of King County & the contract passed through by the Washington State Housing Finance Commission (WSHFC) totaled $205,822 but were not included in the original SEFA provided.? 21.023 Emergency Rental Assistance Program Contract 9395 passed through by the United Way of King County understated by $341,000.? 21.023 Emergency Rental Assistance Program Contract excluded. Contract 8366 passed through by the United Way of King County included $8,274,601 of federal funds that were not included on the original SEFA provided for audit.? 21.026 Homeowner Assistance Fund contact #HAF0025 passed through by WSHFC overstated by $124,710.? 91.024 Emergency Food and Shelter contract #889000-033 passed through by United Way of King County overstated by $66,542.? 17.258 WIOA Title 1b Adult Services contract #21-115-ADU passed through by Workforce Development Council of King County not identified as part of the WIOA Cluster.Additionally, the prior year SEFA was overstated by $704,017 for the 20.019 Coronavirus Relief Fund Contracts #4120 and #8328 passed through by the United Way of King County due to the accounting error identified in Finding 2022-001.Effect:Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs.Cause:As noted in Finding 2022-001, the Organization did not correctly account for advanced federal funds and as noted in Finding 2022-003, the Organization has not implemented a policy for advanced federal funds that complies with 2 CFR 200.305. These gaps in internal control resulted in cut-off errors in SEFA reporting for FY21 & FY22. Additionally, the Organization has not been applying the guidance of Section 200.502 of the Uniform Guidance in preparing the SEFA. Lastly, the program manager of the pass through agency of the 21.023 Emergency Rental Assistance Program Contract #8366 incorrectly informed the Organization that it had no responsibility for reporting the contract as a subrecipient of federal funds.Recommendation:The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to completeness and accuracy in SEFA reporting.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-002 Reporting ? Schedule of Expenditures of Federal AwardsIdentification as a Repeat Finding: Repeat of Finding 2021-004.Finding:The SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards.Criteria:The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs.Sample Size and Population: N/ACondition and Context:The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following:? 21.019 Coronavirus Relief Fund excluded. Contracts 4120 & 8328 passed through by the United Way of King County & the contract passed through by the Washington State Housing Finance Commission (WSHFC) totaled $205,822 but were not included in the original SEFA provided.? 21.023 Emergency Rental Assistance Program Contract 9395 passed through by the United Way of King County understated by $341,000.? 21.023 Emergency Rental Assistance Program Contract excluded. Contract 8366 passed through by the United Way of King County included $8,274,601 of federal funds that were not included on the original SEFA provided for audit.? 21.026 Homeowner Assistance Fund contact #HAF0025 passed through by WSHFC overstated by $124,710.? 91.024 Emergency Food and Shelter contract #889000-033 passed through by United Way of King County overstated by $66,542.? 17.258 WIOA Title 1b Adult Services contract #21-115-ADU passed through by Workforce Development Council of King County not identified as part of the WIOA Cluster.Additionally, the prior year SEFA was overstated by $704,017 for the 20.019 Coronavirus Relief Fund Contracts #4120 and #8328 passed through by the United Way of King County due to the accounting error identified in Finding 2022-001.Effect:Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs.Cause:As noted in Finding 2022-001, the Organization did not correctly account for advanced federal funds and as noted in Finding 2022-003, the Organization has not implemented a policy for advanced federal funds that complies with 2 CFR 200.305. These gaps in internal control resulted in cut-off errors in SEFA reporting for FY21 & FY22. Additionally, the Organization has not been applying the guidance of Section 200.502 of the Uniform Guidance in preparing the SEFA. Lastly, the program manager of the pass through agency of the 21.023 Emergency Rental Assistance Program Contract #8366 incorrectly informed the Organization that it had no responsibility for reporting the contract as a subrecipient of federal funds.Recommendation:The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to completeness and accuracy in SEFA reporting.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-001 Accounting System, Processes and Reporting Identification as a Repeat Finding: Repeat of Finding 2021-001Finding:Internal control processes over financial accounting did not ensure that all transactions were properly recorded in accordance with U.S. GAAP on a timely basis.Criteria:The Urban League is responsible for day-to-day transactional accounting as well as annual financial statement reporting. As such, the Organization is responsible for implementing adequate procedures to ensure that such information and reports are accurate and complete.Uniform Guidance Section 2 CFR 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions of the federal award.Sample Size and Population:Sampling was not applicable to this finding.Condition and Context:The Organization experienced turnover in its accounting and finance department at the beginning of the fiscal year. In the midst of the transition in staffing, historic knowledge of accounting for certain transactions was lost and reconciliations prepared did not use accurate accounting records and lacked clerical accuracy.Effect:Interim financial statements utilized by the Board of Directors for decision making in FY2022 did not accurately reflect the financial condition of the Organization on a U.S. GAAP basis. The Organization?s internal controls failed to identify material errors in accounting including the following:? 18 months of operating activities were recorded within the consolidating Partnership?s accounting records for the 12 month period ended June 30, 2022.? $704,017 in advanced payments of federal funds that were received in the year ended June 30, 2021 were recognized as revenue during that year and were not appropriately reflected as refundable advances as of that date as disclosed in Note 20 of the financial statements.? Material adjustments were identified in the Organization?s accounting for restricted revenue and net assets with donor restrictions.? The Organization's accounting for a fiscal sponsor relationship did not appropriately reflect accounting for such relationships under ASC 958, Not-For-Profit Entities.Cause:The errors identified in the Partnership?s accounting records reflect errors in the design of reconciliations. The errors in accounting for advanced payments of federal funds reflect documentation retention matters addressed in Finding 2021-006. Additionally, the errors in accounting for advanced payments, restricted revenue, and fiscal sponsor relationships reflect errors in identifying the accounting treatment for contract terms.Recommendations:? Perform analytics of financial data at least quarterly to identify unusual activity that may indicate errors in accounting.? Establish a process for reviewing contract terms and evaluating, communicating, and documenting the appropriate accounting treatment.? Obtain training on ASC 958, Not-for-Profit Entities.? Engage a third-party CPA to review accounting reconciliations on a quarterly basis.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-001 Accounting System, Processes and Reporting Identification as a Repeat Finding: Repeat of Finding 2021-001Finding:Internal control processes over financial accounting did not ensure that all transactions were properly recorded in accordance with U.S. GAAP on a timely basis.Criteria:The Urban League is responsible for day-to-day transactional accounting as well as annual financial statement reporting. As such, the Organization is responsible for implementing adequate procedures to ensure that such information and reports are accurate and complete.Uniform Guidance Section 2 CFR 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions of the federal award.Sample Size and Population:Sampling was not applicable to this finding.Condition and Context:The Organization experienced turnover in its accounting and finance department at the beginning of the fiscal year. In the midst of the transition in staffing, historic knowledge of accounting for certain transactions was lost and reconciliations prepared did not use accurate accounting records and lacked clerical accuracy.Effect:Interim financial statements utilized by the Board of Directors for decision making in FY2022 did not accurately reflect the financial condition of the Organization on a U.S. GAAP basis. The Organization?s internal controls failed to identify material errors in accounting including the following:? 18 months of operating activities were recorded within the consolidating Partnership?s accounting records for the 12 month period ended June 30, 2022.? $704,017 in advanced payments of federal funds that were received in the year ended June 30, 2021 were recognized as revenue during that year and were not appropriately reflected as refundable advances as of that date as disclosed in Note 20 of the financial statements.? Material adjustments were identified in the Organization?s accounting for restricted revenue and net assets with donor restrictions.? The Organization's accounting for a fiscal sponsor relationship did not appropriately reflect accounting for such relationships under ASC 958, Not-For-Profit Entities.Cause:The errors identified in the Partnership?s accounting records reflect errors in the design of reconciliations. The errors in accounting for advanced payments of federal funds reflect documentation retention matters addressed in Finding 2021-006. Additionally, the errors in accounting for advanced payments, restricted revenue, and fiscal sponsor relationships reflect errors in identifying the accounting treatment for contract terms.Recommendations:? Perform analytics of financial data at least quarterly to identify unusual activity that may indicate errors in accounting.? Establish a process for reviewing contract terms and evaluating, communicating, and documenting the appropriate accounting treatment.? Obtain training on ASC 958, Not-for-Profit Entities.? Engage a third-party CPA to review accounting reconciliations on a quarterly basis.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-002 Reporting ? Schedule of Expenditures of Federal AwardsIdentification as a Repeat Finding: Repeat of Finding 2021-004.Finding:The SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards.Criteria:The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs.Sample Size and Population: N/ACondition and Context:The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following:? 21.019 Coronavirus Relief Fund excluded. Contracts 4120 & 8328 passed through by the United Way of King County & the contract passed through by the Washington State Housing Finance Commission (WSHFC) totaled $205,822 but were not included in the original SEFA provided.? 21.023 Emergency Rental Assistance Program Contract 9395 passed through by the United Way of King County understated by $341,000.? 21.023 Emergency Rental Assistance Program Contract excluded. Contract 8366 passed through by the United Way of King County included $8,274,601 of federal funds that were not included on the original SEFA provided for audit.? 21.026 Homeowner Assistance Fund contact #HAF0025 passed through by WSHFC overstated by $124,710.? 91.024 Emergency Food and Shelter contract #889000-033 passed through by United Way of King County overstated by $66,542.? 17.258 WIOA Title 1b Adult Services contract #21-115-ADU passed through by Workforce Development Council of King County not identified as part of the WIOA Cluster.Additionally, the prior year SEFA was overstated by $704,017 for the 20.019 Coronavirus Relief Fund Contracts #4120 and #8328 passed through by the United Way of King County due to the accounting error identified in Finding 2022-001.Effect:Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs.Cause:As noted in Finding 2022-001, the Organization did not correctly account for advanced federal funds and as noted in Finding 2022-003, the Organization has not implemented a policy for advanced federal funds that complies with 2 CFR 200.305. These gaps in internal control resulted in cut-off errors in SEFA reporting for FY21 & FY22. Additionally, the Organization has not been applying the guidance of Section 200.502 of the Uniform Guidance in preparing the SEFA. Lastly, the program manager of the pass through agency of the 21.023 Emergency Rental Assistance Program Contract #8366 incorrectly informed the Organization that it had no responsibility for reporting the contract as a subrecipient of federal funds.Recommendation:The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to completeness and accuracy in SEFA reporting.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-002 Reporting ? Schedule of Expenditures of Federal AwardsIdentification as a Repeat Finding: Repeat of Finding 2021-004.Finding:The SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards.Criteria:The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs.Sample Size and Population: N/ACondition and Context:The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following:? 21.019 Coronavirus Relief Fund excluded. Contracts 4120 & 8328 passed through by the United Way of King County & the contract passed through by the Washington State Housing Finance Commission (WSHFC) totaled $205,822 but were not included in the original SEFA provided.? 21.023 Emergency Rental Assistance Program Contract 9395 passed through by the United Way of King County understated by $341,000.? 21.023 Emergency Rental Assistance Program Contract excluded. Contract 8366 passed through by the United Way of King County included $8,274,601 of federal funds that were not included on the original SEFA provided for audit.? 21.026 Homeowner Assistance Fund contact #HAF0025 passed through by WSHFC overstated by $124,710.? 91.024 Emergency Food and Shelter contract #889000-033 passed through by United Way of King County overstated by $66,542.? 17.258 WIOA Title 1b Adult Services contract #21-115-ADU passed through by Workforce Development Council of King County not identified as part of the WIOA Cluster.Additionally, the prior year SEFA was overstated by $704,017 for the 20.019 Coronavirus Relief Fund Contracts #4120 and #8328 passed through by the United Way of King County due to the accounting error identified in Finding 2022-001.Effect:Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs.Cause:As noted in Finding 2022-001, the Organization did not correctly account for advanced federal funds and as noted in Finding 2022-003, the Organization has not implemented a policy for advanced federal funds that complies with 2 CFR 200.305. These gaps in internal control resulted in cut-off errors in SEFA reporting for FY21 & FY22. Additionally, the Organization has not been applying the guidance of Section 200.502 of the Uniform Guidance in preparing the SEFA. Lastly, the program manager of the pass through agency of the 21.023 Emergency Rental Assistance Program Contract #8366 incorrectly informed the Organization that it had no responsibility for reporting the contract as a subrecipient of federal funds.Recommendation:The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to completeness and accuracy in SEFA reporting.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022 ? 003 Federal Payment Policy Identification as a Repeat Finding: Repeat of Finding 2021-005Finding:The Organization does not have a written policy that complies with the federal payment standards established in 2 CFR 200.305.Criteria:Non-Federal entities other than States must follow the federal payment standards set out at 2 CFR 200.305. They must maintain written procedures that minimize the time elapsing between the transfer of funds and disbursement by the non-Federal entity, and financial management systems that meet the standards for fund control and accountability. Other criteria include but are not limited to consolidating advanced payments to cover anticipated cash needs for all awards, utilizing resources before requesting advanced payments and depositing advanced payments in insured accounts whenever possible.Condition and context:The Urban League has not adopted a federal payment policy that complies with federal standards. The written advance payment of federal funds procedure document utilized by the Organization does not address the criteria of 2 CFR 200.305.Cause:The Organization did not review 2 CFR 200.305 when drafting its federal payment procedures to ensure all required components were incorporated.Sample size and population:Sampling was not applicable to this finding.Effect:The result of the finding is that the Urban League is not in compliance with federal payment standards.Recommendation:Incorporate 2 CFR 200.305 into federal payment procedures.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person: Mansour Camara, CFO
2022 ? 003 Federal Payment Policy Identification as a Repeat Finding: Repeat of Finding 2021-005Finding:The Organization does not have a written policy that complies with the federal payment standards established in 2 CFR 200.305.Criteria:Non-Federal entities other than States must follow the federal payment standards set out at 2 CFR 200.305. They must maintain written procedures that minimize the time elapsing between the transfer of funds and disbursement by the non-Federal entity, and financial management systems that meet the standards for fund control and accountability. Other criteria include but are not limited to consolidating advanced payments to cover anticipated cash needs for all awards, utilizing resources before requesting advanced payments and depositing advanced payments in insured accounts whenever possible.Condition and context:The Urban League has not adopted a federal payment policy that complies with federal standards. The written advance payment of federal funds procedure document utilized by the Organization does not address the criteria of 2 CFR 200.305.Cause:The Organization did not review 2 CFR 200.305 when drafting its federal payment procedures to ensure all required components were incorporated.Sample size and population:Sampling was not applicable to this finding.Effect:The result of the finding is that the Urban League is not in compliance with federal payment standards.Recommendation:Incorporate 2 CFR 200.305 into federal payment procedures.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-002 Reporting ? Schedule of Expenditures of Federal AwardsIdentification as a Repeat Finding: Repeat of Finding 2021-004.Finding:The SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards.Criteria:The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs.Sample Size and Population: N/ACondition and Context:The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following:? 21.019 Coronavirus Relief Fund excluded. Contracts 4120 & 8328 passed through by the United Way of King County & the contract passed through by the Washington State Housing Finance Commission (WSHFC) totaled $205,822 but were not included in the original SEFA provided.? 21.023 Emergency Rental Assistance Program Contract 9395 passed through by the United Way of King County understated by $341,000.? 21.023 Emergency Rental Assistance Program Contract excluded. Contract 8366 passed through by the United Way of King County included $8,274,601 of federal funds that were not included on the original SEFA provided for audit.? 21.026 Homeowner Assistance Fund contact #HAF0025 passed through by WSHFC overstated by $124,710.? 91.024 Emergency Food and Shelter contract #889000-033 passed through by United Way of King County overstated by $66,542.? 17.258 WIOA Title 1b Adult Services contract #21-115-ADU passed through by Workforce Development Council of King County not identified as part of the WIOA Cluster.Additionally, the prior year SEFA was overstated by $704,017 for the 20.019 Coronavirus Relief Fund Contracts #4120 and #8328 passed through by the United Way of King County due to the accounting error identified in Finding 2022-001.Effect:Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs.Cause:As noted in Finding 2022-001, the Organization did not correctly account for advanced federal funds and as noted in Finding 2022-003, the Organization has not implemented a policy for advanced federal funds that complies with 2 CFR 200.305. These gaps in internal control resulted in cut-off errors in SEFA reporting for FY21 & FY22. Additionally, the Organization has not been applying the guidance of Section 200.502 of the Uniform Guidance in preparing the SEFA. Lastly, the program manager of the pass through agency of the 21.023 Emergency Rental Assistance Program Contract #8366 incorrectly informed the Organization that it had no responsibility for reporting the contract as a subrecipient of federal funds.Recommendation:The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to completeness and accuracy in SEFA reporting.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-002 Reporting ? Schedule of Expenditures of Federal AwardsIdentification as a Repeat Finding: Repeat of Finding 2021-004.Finding:The SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards.Criteria:The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs.Sample Size and Population: N/ACondition and Context:The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following:? 21.019 Coronavirus Relief Fund excluded. Contracts 4120 & 8328 passed through by the United Way of King County & the contract passed through by the Washington State Housing Finance Commission (WSHFC) totaled $205,822 but were not included in the original SEFA provided.? 21.023 Emergency Rental Assistance Program Contract 9395 passed through by the United Way of King County understated by $341,000.? 21.023 Emergency Rental Assistance Program Contract excluded. Contract 8366 passed through by the United Way of King County included $8,274,601 of federal funds that were not included on the original SEFA provided for audit.? 21.026 Homeowner Assistance Fund contact #HAF0025 passed through by WSHFC overstated by $124,710.? 91.024 Emergency Food and Shelter contract #889000-033 passed through by United Way of King County overstated by $66,542.? 17.258 WIOA Title 1b Adult Services contract #21-115-ADU passed through by Workforce Development Council of King County not identified as part of the WIOA Cluster.Additionally, the prior year SEFA was overstated by $704,017 for the 20.019 Coronavirus Relief Fund Contracts #4120 and #8328 passed through by the United Way of King County due to the accounting error identified in Finding 2022-001.Effect:Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs.Cause:As noted in Finding 2022-001, the Organization did not correctly account for advanced federal funds and as noted in Finding 2022-003, the Organization has not implemented a policy for advanced federal funds that complies with 2 CFR 200.305. These gaps in internal control resulted in cut-off errors in SEFA reporting for FY21 & FY22. Additionally, the Organization has not been applying the guidance of Section 200.502 of the Uniform Guidance in preparing the SEFA. Lastly, the program manager of the pass through agency of the 21.023 Emergency Rental Assistance Program Contract #8366 incorrectly informed the Organization that it had no responsibility for reporting the contract as a subrecipient of federal funds.Recommendation:The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to completeness and accuracy in SEFA reporting.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-002 Reporting ? Schedule of Expenditures of Federal AwardsIdentification as a Repeat Finding: Repeat of Finding 2021-004.Finding:The SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards.Criteria:The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs.Sample Size and Population: N/ACondition and Context:The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following:? 21.019 Coronavirus Relief Fund excluded. Contracts 4120 & 8328 passed through by the United Way of King County & the contract passed through by the Washington State Housing Finance Commission (WSHFC) totaled $205,822 but were not included in the original SEFA provided.? 21.023 Emergency Rental Assistance Program Contract 9395 passed through by the United Way of King County understated by $341,000.? 21.023 Emergency Rental Assistance Program Contract excluded. Contract 8366 passed through by the United Way of King County included $8,274,601 of federal funds that were not included on the original SEFA provided for audit.? 21.026 Homeowner Assistance Fund contact #HAF0025 passed through by WSHFC overstated by $124,710.? 91.024 Emergency Food and Shelter contract #889000-033 passed through by United Way of King County overstated by $66,542.? 17.258 WIOA Title 1b Adult Services contract #21-115-ADU passed through by Workforce Development Council of King County not identified as part of the WIOA Cluster.Additionally, the prior year SEFA was overstated by $704,017 for the 20.019 Coronavirus Relief Fund Contracts #4120 and #8328 passed through by the United Way of King County due to the accounting error identified in Finding 2022-001.Effect:Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs.Cause:As noted in Finding 2022-001, the Organization did not correctly account for advanced federal funds and as noted in Finding 2022-003, the Organization has not implemented a policy for advanced federal funds that complies with 2 CFR 200.305. These gaps in internal control resulted in cut-off errors in SEFA reporting for FY21 & FY22. Additionally, the Organization has not been applying the guidance of Section 200.502 of the Uniform Guidance in preparing the SEFA. Lastly, the program manager of the pass through agency of the 21.023 Emergency Rental Assistance Program Contract #8366 incorrectly informed the Organization that it had no responsibility for reporting the contract as a subrecipient of federal funds.Recommendation:The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to completeness and accuracy in SEFA reporting.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-002 Reporting ? Schedule of Expenditures of Federal AwardsIdentification as a Repeat Finding: Repeat of Finding 2021-004.Finding:The SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards.Criteria:The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs.Sample Size and Population: N/ACondition and Context:The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following:? 21.019 Coronavirus Relief Fund excluded. Contracts 4120 & 8328 passed through by the United Way of King County & the contract passed through by the Washington State Housing Finance Commission (WSHFC) totaled $205,822 but were not included in the original SEFA provided.? 21.023 Emergency Rental Assistance Program Contract 9395 passed through by the United Way of King County understated by $341,000.? 21.023 Emergency Rental Assistance Program Contract excluded. Contract 8366 passed through by the United Way of King County included $8,274,601 of federal funds that were not included on the original SEFA provided for audit.? 21.026 Homeowner Assistance Fund contact #HAF0025 passed through by WSHFC overstated by $124,710.? 91.024 Emergency Food and Shelter contract #889000-033 passed through by United Way of King County overstated by $66,542.? 17.258 WIOA Title 1b Adult Services contract #21-115-ADU passed through by Workforce Development Council of King County not identified as part of the WIOA Cluster.Additionally, the prior year SEFA was overstated by $704,017 for the 20.019 Coronavirus Relief Fund Contracts #4120 and #8328 passed through by the United Way of King County due to the accounting error identified in Finding 2022-001.Effect:Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs.Cause:As noted in Finding 2022-001, the Organization did not correctly account for advanced federal funds and as noted in Finding 2022-003, the Organization has not implemented a policy for advanced federal funds that complies with 2 CFR 200.305. These gaps in internal control resulted in cut-off errors in SEFA reporting for FY21 & FY22. Additionally, the Organization has not been applying the guidance of Section 200.502 of the Uniform Guidance in preparing the SEFA. Lastly, the program manager of the pass through agency of the 21.023 Emergency Rental Assistance Program Contract #8366 incorrectly informed the Organization that it had no responsibility for reporting the contract as a subrecipient of federal funds.Recommendation:The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to completeness and accuracy in SEFA reporting.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-002 Reporting ? Schedule of Expenditures of Federal AwardsIdentification as a Repeat Finding: Repeat of Finding 2021-004.Finding:The SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards.Criteria:The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs.Sample Size and Population: N/ACondition and Context:The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following:? 21.019 Coronavirus Relief Fund excluded. Contracts 4120 & 8328 passed through by the United Way of King County & the contract passed through by the Washington State Housing Finance Commission (WSHFC) totaled $205,822 but were not included in the original SEFA provided.? 21.023 Emergency Rental Assistance Program Contract 9395 passed through by the United Way of King County understated by $341,000.? 21.023 Emergency Rental Assistance Program Contract excluded. Contract 8366 passed through by the United Way of King County included $8,274,601 of federal funds that were not included on the original SEFA provided for audit.? 21.026 Homeowner Assistance Fund contact #HAF0025 passed through by WSHFC overstated by $124,710.? 91.024 Emergency Food and Shelter contract #889000-033 passed through by United Way of King County overstated by $66,542.? 17.258 WIOA Title 1b Adult Services contract #21-115-ADU passed through by Workforce Development Council of King County not identified as part of the WIOA Cluster.Additionally, the prior year SEFA was overstated by $704,017 for the 20.019 Coronavirus Relief Fund Contracts #4120 and #8328 passed through by the United Way of King County due to the accounting error identified in Finding 2022-001.Effect:Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs.Cause:As noted in Finding 2022-001, the Organization did not correctly account for advanced federal funds and as noted in Finding 2022-003, the Organization has not implemented a policy for advanced federal funds that complies with 2 CFR 200.305. These gaps in internal control resulted in cut-off errors in SEFA reporting for FY21 & FY22. Additionally, the Organization has not been applying the guidance of Section 200.502 of the Uniform Guidance in preparing the SEFA. Lastly, the program manager of the pass through agency of the 21.023 Emergency Rental Assistance Program Contract #8366 incorrectly informed the Organization that it had no responsibility for reporting the contract as a subrecipient of federal funds.Recommendation:The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to completeness and accuracy in SEFA reporting.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO
2022-001 Accounting System, Processes and Reporting Identification as a Repeat Finding: Repeat of Finding 2021-001Finding:Internal control processes over financial accounting did not ensure that all transactions were properly recorded in accordance with U.S. GAAP on a timely basis.Criteria:The Urban League is responsible for day-to-day transactional accounting as well as annual financial statement reporting. As such, the Organization is responsible for implementing adequate procedures to ensure that such information and reports are accurate and complete.Uniform Guidance Section 2 CFR 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions of the federal award.Sample Size and Population:Sampling was not applicable to this finding.Condition and Context:The Organization experienced turnover in its accounting and finance department at the beginning of the fiscal year. In the midst of the transition in staffing, historic knowledge of accounting for certain transactions was lost and reconciliations prepared did not use accurate accounting records and lacked clerical accuracy.Effect:Interim financial statements utilized by the Board of Directors for decision making in FY2022 did not accurately reflect the financial condition of the Organization on a U.S. GAAP basis. The Organization?s internal controls failed to identify material errors in accounting including the following:? 18 months of operating activities were recorded within the consolidating Partnership?s accounting records for the 12 month period ended June 30, 2022.? $704,017 in advanced payments of federal funds that were received in the year ended June 30, 2021 were recognized as revenue during that year and were not appropriately reflected as refundable advances as of that date as disclosed in Note 20 of the financial statements.? Material adjustments were identified in the Organization?s accounting for restricted revenue and net assets with donor restrictions.? The Organization's accounting for a fiscal sponsor relationship did not appropriately reflect accounting for such relationships under ASC 958, Not-For-Profit Entities.Cause:The errors identified in the Partnership?s accounting records reflect errors in the design of reconciliations. The errors in accounting for advanced payments of federal funds reflect documentation retention matters addressed in Finding 2021-006. Additionally, the errors in accounting for advanced payments, restricted revenue, and fiscal sponsor relationships reflect errors in identifying the accounting treatment for contract terms.Recommendations:? Perform analytics of financial data at least quarterly to identify unusual activity that may indicate errors in accounting.? Establish a process for reviewing contract terms and evaluating, communicating, and documenting the appropriate accounting treatment.? Obtain training on ASC 958, Not-for-Profit Entities.? Engage a third-party CPA to review accounting reconciliations on a quarterly basis.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-001 Accounting System, Processes and Reporting Identification as a Repeat Finding: Repeat of Finding 2021-001Finding:Internal control processes over financial accounting did not ensure that all transactions were properly recorded in accordance with U.S. GAAP on a timely basis.Criteria:The Urban League is responsible for day-to-day transactional accounting as well as annual financial statement reporting. As such, the Organization is responsible for implementing adequate procedures to ensure that such information and reports are accurate and complete.Uniform Guidance Section 2 CFR 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions of the federal award.Sample Size and Population:Sampling was not applicable to this finding.Condition and Context:The Organization experienced turnover in its accounting and finance department at the beginning of the fiscal year. In the midst of the transition in staffing, historic knowledge of accounting for certain transactions was lost and reconciliations prepared did not use accurate accounting records and lacked clerical accuracy.Effect:Interim financial statements utilized by the Board of Directors for decision making in FY2022 did not accurately reflect the financial condition of the Organization on a U.S. GAAP basis. The Organization?s internal controls failed to identify material errors in accounting including the following:? 18 months of operating activities were recorded within the consolidating Partnership?s accounting records for the 12 month period ended June 30, 2022.? $704,017 in advanced payments of federal funds that were received in the year ended June 30, 2021 were recognized as revenue during that year and were not appropriately reflected as refundable advances as of that date as disclosed in Note 20 of the financial statements.? Material adjustments were identified in the Organization?s accounting for restricted revenue and net assets with donor restrictions.? The Organization's accounting for a fiscal sponsor relationship did not appropriately reflect accounting for such relationships under ASC 958, Not-For-Profit Entities.Cause:The errors identified in the Partnership?s accounting records reflect errors in the design of reconciliations. The errors in accounting for advanced payments of federal funds reflect documentation retention matters addressed in Finding 2021-006. Additionally, the errors in accounting for advanced payments, restricted revenue, and fiscal sponsor relationships reflect errors in identifying the accounting treatment for contract terms.Recommendations:? Perform analytics of financial data at least quarterly to identify unusual activity that may indicate errors in accounting.? Establish a process for reviewing contract terms and evaluating, communicating, and documenting the appropriate accounting treatment.? Obtain training on ASC 958, Not-for-Profit Entities.? Engage a third-party CPA to review accounting reconciliations on a quarterly basis.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-002 Reporting ? Schedule of Expenditures of Federal AwardsIdentification as a Repeat Finding: Repeat of Finding 2021-004.Finding:The SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards.Criteria:The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs.Sample Size and Population: N/ACondition and Context:The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following:? 21.019 Coronavirus Relief Fund excluded. Contracts 4120 & 8328 passed through by the United Way of King County & the contract passed through by the Washington State Housing Finance Commission (WSHFC) totaled $205,822 but were not included in the original SEFA provided.? 21.023 Emergency Rental Assistance Program Contract 9395 passed through by the United Way of King County understated by $341,000.? 21.023 Emergency Rental Assistance Program Contract excluded. Contract 8366 passed through by the United Way of King County included $8,274,601 of federal funds that were not included on the original SEFA provided for audit.? 21.026 Homeowner Assistance Fund contact #HAF0025 passed through by WSHFC overstated by $124,710.? 91.024 Emergency Food and Shelter contract #889000-033 passed through by United Way of King County overstated by $66,542.? 17.258 WIOA Title 1b Adult Services contract #21-115-ADU passed through by Workforce Development Council of King County not identified as part of the WIOA Cluster.Additionally, the prior year SEFA was overstated by $704,017 for the 20.019 Coronavirus Relief Fund Contracts #4120 and #8328 passed through by the United Way of King County due to the accounting error identified in Finding 2022-001.Effect:Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs.Cause:As noted in Finding 2022-001, the Organization did not correctly account for advanced federal funds and as noted in Finding 2022-003, the Organization has not implemented a policy for advanced federal funds that complies with 2 CFR 200.305. These gaps in internal control resulted in cut-off errors in SEFA reporting for FY21 & FY22. Additionally, the Organization has not been applying the guidance of Section 200.502 of the Uniform Guidance in preparing the SEFA. Lastly, the program manager of the pass through agency of the 21.023 Emergency Rental Assistance Program Contract #8366 incorrectly informed the Organization that it had no responsibility for reporting the contract as a subrecipient of federal funds.Recommendation:The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to completeness and accuracy in SEFA reporting.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022-002 Reporting ? Schedule of Expenditures of Federal AwardsIdentification as a Repeat Finding: Repeat of Finding 2021-004.Finding:The SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards.Criteria:The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs.Sample Size and Population: N/ACondition and Context:The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following:? 21.019 Coronavirus Relief Fund excluded. Contracts 4120 & 8328 passed through by the United Way of King County & the contract passed through by the Washington State Housing Finance Commission (WSHFC) totaled $205,822 but were not included in the original SEFA provided.? 21.023 Emergency Rental Assistance Program Contract 9395 passed through by the United Way of King County understated by $341,000.? 21.023 Emergency Rental Assistance Program Contract excluded. Contract 8366 passed through by the United Way of King County included $8,274,601 of federal funds that were not included on the original SEFA provided for audit.? 21.026 Homeowner Assistance Fund contact #HAF0025 passed through by WSHFC overstated by $124,710.? 91.024 Emergency Food and Shelter contract #889000-033 passed through by United Way of King County overstated by $66,542.? 17.258 WIOA Title 1b Adult Services contract #21-115-ADU passed through by Workforce Development Council of King County not identified as part of the WIOA Cluster.Additionally, the prior year SEFA was overstated by $704,017 for the 20.019 Coronavirus Relief Fund Contracts #4120 and #8328 passed through by the United Way of King County due to the accounting error identified in Finding 2022-001.Effect:Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs.Cause:As noted in Finding 2022-001, the Organization did not correctly account for advanced federal funds and as noted in Finding 2022-003, the Organization has not implemented a policy for advanced federal funds that complies with 2 CFR 200.305. These gaps in internal control resulted in cut-off errors in SEFA reporting for FY21 & FY22. Additionally, the Organization has not been applying the guidance of Section 200.502 of the Uniform Guidance in preparing the SEFA. Lastly, the program manager of the pass through agency of the 21.023 Emergency Rental Assistance Program Contract #8366 incorrectly informed the Organization that it had no responsibility for reporting the contract as a subrecipient of federal funds.Recommendation:The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to completeness and accuracy in SEFA reporting.Questioned Costs: NoneManagement Response and Corrective Action Plan: See Corrective Action PlanContact Person: Mansour Camara, CFO
2022 ? 003 Federal Payment Policy Identification as a Repeat Finding: Repeat of Finding 2021-005Finding:The Organization does not have a written policy that complies with the federal payment standards established in 2 CFR 200.305.Criteria:Non-Federal entities other than States must follow the federal payment standards set out at 2 CFR 200.305. They must maintain written procedures that minimize the time elapsing between the transfer of funds and disbursement by the non-Federal entity, and financial management systems that meet the standards for fund control and accountability. Other criteria include but are not limited to consolidating advanced payments to cover anticipated cash needs for all awards, utilizing resources before requesting advanced payments and depositing advanced payments in insured accounts whenever possible.Condition and context:The Urban League has not adopted a federal payment policy that complies with federal standards. The written advance payment of federal funds procedure document utilized by the Organization does not address the criteria of 2 CFR 200.305.Cause:The Organization did not review 2 CFR 200.305 when drafting its federal payment procedures to ensure all required components were incorporated.Sample size and population:Sampling was not applicable to this finding.Effect:The result of the finding is that the Urban League is not in compliance with federal payment standards.Recommendation:Incorporate 2 CFR 200.305 into federal payment procedures.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person: Mansour Camara, CFO
2022 ? 003 Federal Payment Policy Identification as a Repeat Finding: Repeat of Finding 2021-005Finding:The Organization does not have a written policy that complies with the federal payment standards established in 2 CFR 200.305.Criteria:Non-Federal entities other than States must follow the federal payment standards set out at 2 CFR 200.305. They must maintain written procedures that minimize the time elapsing between the transfer of funds and disbursement by the non-Federal entity, and financial management systems that meet the standards for fund control and accountability. Other criteria include but are not limited to consolidating advanced payments to cover anticipated cash needs for all awards, utilizing resources before requesting advanced payments and depositing advanced payments in insured accounts whenever possible.Condition and context:The Urban League has not adopted a federal payment policy that complies with federal standards. The written advance payment of federal funds procedure document utilized by the Organization does not address the criteria of 2 CFR 200.305.Cause:The Organization did not review 2 CFR 200.305 when drafting its federal payment procedures to ensure all required components were incorporated.Sample size and population:Sampling was not applicable to this finding.Effect:The result of the finding is that the Urban League is not in compliance with federal payment standards.Recommendation:Incorporate 2 CFR 200.305 into federal payment procedures.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person: Mansour Camara, CFO