FAC Explorer

Audit 314941

FY End
2023-09-30
Total Expended
$5.05M
Findings
6
Programs
5
Organization: Religious Coalition for Emergency Human Needs (MD)
Year: 2023 Accepted: 2024-07-11
Auditor: Lswg P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
478271 2023-001 Material Weakness - AB
478272 2023-001 Material Weakness - AB
478273 2023-001 Material Weakness - AB
1054713 2023-001 Material Weakness - AB
1054714 2023-001 Material Weakness - AB
1054715 2023-001 Material Weakness - AB

Programs

ALN Program Spent Major Findings
14.231 Emergency Solutions Grant Program $321,419 - 0
21.023 Emergency Rental Assistance Program $180,878 Yes 1
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $34,062 - 0
97.024 Emergency Food and Shelter National Board Program $15,300 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $9,800 - 0

Contacts

Name Title Type
MG3JATNW7LB5 Nick Brown Auditee
3016312670 Eva Webb Auditor
No contacts on file

Notes to SEFA

Title: Deminimis Fringe Rate Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Beyond Shelter Frederick, Inc. (a nonprofit organization), under programs of the federal government for the year ended September 30, 2023. 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 (Uniform Guidance). Expenditures reported on the Schedule are on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Because the Schedule presents only a selected portion of operations of Beyond Shelter Frederick, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Beyond Shelter Frederick, Inc. MAJOR PROGRAM Department of the Treasury Assistance Listing Number 21.023 Emergency Rental Assistance Program ERA 1 provided $25 billion for the U.S. Department of the Treasury (Treasury). ERA 1 award funds may be used to provide financial assistance and housing stability service to eligible households between March 15, 2021 and December 31, 2021. This program provides emergency rental assistance and utility assistance to individuals and families who have been impacted by the COVID-19 crisis. ERA 2 provided $21.55 billion for the U.S. Department of the Treasury (Treasury). ERA 2 award funds may be used to assist eligible households with financial assistance and to provide housing stability services and, as applicable, to cover the costs for other affordable rental housing and eviction prevention activities. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate as they us the indirect cost rates agreed upon in the applicable grant document. Beyond Shelter Frederick, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance; they utilize the indirect cost rates agreed upon in the applicable grant document.

Finding Details

Finding 2023-001
Criteria: Generally accepted accounting principles in the United States (GAAP) requires entities to establish and maintain effective internal controls over financial reporting to ensure accurate financial reports. A good system of internal controls requires contemporaneous timesheets be maintained for all employees and the timesheets should be signed by both the employee and the supervisor. Condition and Context: A payroll test was performed that encompassed all employees for two calendar months. Of the 137 timesheets selected for testing, 12 did not include the supervisor’s signature and 2 timesheets had hours that did not agree to the hours included on the payroll register. Cause: Management has represented that the supervisor was away and did not have access to the timekeeping system to approve the timesheets and gave verbal approval. Management has also represented that any hours submitted on the timesheet after the due date would not be included in the payroll. Effect: The approval by the supervisor was not able to be verified through the timekeeping system and the employees were not paid for hours worked as they missed the timesheet submission deadline. Auditor’s Recommendation: We recommend that management work with the supervisors to ensure they are approving the timesheets through the timekeeping system for documentation purposes or appoint an alternate approver in the absence of the assigned supervisor. Verbal approval is not an acceptable way of approving timesheets. We also recommend training for employees to ensure the timesheet hours are submitted timely. Views of Responsible Officials and Planned Corrective Actions: Employees are now notified when timesheets are due and are made aware of the processing deadline. Going forward, if a manger is taking time off, they will assign another manager to approve timesheets in their absence and this will be documented. Employees will also receive training from the payroll company applications.
Finding 2023-001
Criteria: Generally accepted accounting principles in the United States (GAAP) requires entities to establish and maintain effective internal controls over financial reporting to ensure accurate financial reports. A good system of internal controls requires contemporaneous timesheets be maintained for all employees and the timesheets should be signed by both the employee and the supervisor. Condition and Context: A payroll test was performed that encompassed all employees for two calendar months. Of the 137 timesheets selected for testing, 12 did not include the supervisor’s signature and 2 timesheets had hours that did not agree to the hours included on the payroll register. Cause: Management has represented that the supervisor was away and did not have access to the timekeeping system to approve the timesheets and gave verbal approval. Management has also represented that any hours submitted on the timesheet after the due date would not be included in the payroll. Effect: The approval by the supervisor was not able to be verified through the timekeeping system and the employees were not paid for hours worked as they missed the timesheet submission deadline. Auditor’s Recommendation: We recommend that management work with the supervisors to ensure they are approving the timesheets through the timekeeping system for documentation purposes or appoint an alternate approver in the absence of the assigned supervisor. Verbal approval is not an acceptable way of approving timesheets. We also recommend training for employees to ensure the timesheet hours are submitted timely. Views of Responsible Officials and Planned Corrective Actions: Employees are now notified when timesheets are due and are made aware of the processing deadline. Going forward, if a manger is taking time off, they will assign another manager to approve timesheets in their absence and this will be documented. Employees will also receive training from the payroll company applications.
Finding 2023-001
Criteria: Generally accepted accounting principles in the United States (GAAP) requires entities to establish and maintain effective internal controls over financial reporting to ensure accurate financial reports. A good system of internal controls requires contemporaneous timesheets be maintained for all employees and the timesheets should be signed by both the employee and the supervisor. Condition and Context: A payroll test was performed that encompassed all employees for two calendar months. Of the 137 timesheets selected for testing, 12 did not include the supervisor’s signature and 2 timesheets had hours that did not agree to the hours included on the payroll register. Cause: Management has represented that the supervisor was away and did not have access to the timekeeping system to approve the timesheets and gave verbal approval. Management has also represented that any hours submitted on the timesheet after the due date would not be included in the payroll. Effect: The approval by the supervisor was not able to be verified through the timekeeping system and the employees were not paid for hours worked as they missed the timesheet submission deadline. Auditor’s Recommendation: We recommend that management work with the supervisors to ensure they are approving the timesheets through the timekeeping system for documentation purposes or appoint an alternate approver in the absence of the assigned supervisor. Verbal approval is not an acceptable way of approving timesheets. We also recommend training for employees to ensure the timesheet hours are submitted timely. Views of Responsible Officials and Planned Corrective Actions: Employees are now notified when timesheets are due and are made aware of the processing deadline. Going forward, if a manger is taking time off, they will assign another manager to approve timesheets in their absence and this will be documented. Employees will also receive training from the payroll company applications.
Finding 2023-001
Criteria: Generally accepted accounting principles in the United States (GAAP) requires entities to establish and maintain effective internal controls over financial reporting to ensure accurate financial reports. A good system of internal controls requires contemporaneous timesheets be maintained for all employees and the timesheets should be signed by both the employee and the supervisor. Condition and Context: A payroll test was performed that encompassed all employees for two calendar months. Of the 137 timesheets selected for testing, 12 did not include the supervisor’s signature and 2 timesheets had hours that did not agree to the hours included on the payroll register. Cause: Management has represented that the supervisor was away and did not have access to the timekeeping system to approve the timesheets and gave verbal approval. Management has also represented that any hours submitted on the timesheet after the due date would not be included in the payroll. Effect: The approval by the supervisor was not able to be verified through the timekeeping system and the employees were not paid for hours worked as they missed the timesheet submission deadline. Auditor’s Recommendation: We recommend that management work with the supervisors to ensure they are approving the timesheets through the timekeeping system for documentation purposes or appoint an alternate approver in the absence of the assigned supervisor. Verbal approval is not an acceptable way of approving timesheets. We also recommend training for employees to ensure the timesheet hours are submitted timely. Views of Responsible Officials and Planned Corrective Actions: Employees are now notified when timesheets are due and are made aware of the processing deadline. Going forward, if a manger is taking time off, they will assign another manager to approve timesheets in their absence and this will be documented. Employees will also receive training from the payroll company applications.
Finding 2023-001
Criteria: Generally accepted accounting principles in the United States (GAAP) requires entities to establish and maintain effective internal controls over financial reporting to ensure accurate financial reports. A good system of internal controls requires contemporaneous timesheets be maintained for all employees and the timesheets should be signed by both the employee and the supervisor. Condition and Context: A payroll test was performed that encompassed all employees for two calendar months. Of the 137 timesheets selected for testing, 12 did not include the supervisor’s signature and 2 timesheets had hours that did not agree to the hours included on the payroll register. Cause: Management has represented that the supervisor was away and did not have access to the timekeeping system to approve the timesheets and gave verbal approval. Management has also represented that any hours submitted on the timesheet after the due date would not be included in the payroll. Effect: The approval by the supervisor was not able to be verified through the timekeeping system and the employees were not paid for hours worked as they missed the timesheet submission deadline. Auditor’s Recommendation: We recommend that management work with the supervisors to ensure they are approving the timesheets through the timekeeping system for documentation purposes or appoint an alternate approver in the absence of the assigned supervisor. Verbal approval is not an acceptable way of approving timesheets. We also recommend training for employees to ensure the timesheet hours are submitted timely. Views of Responsible Officials and Planned Corrective Actions: Employees are now notified when timesheets are due and are made aware of the processing deadline. Going forward, if a manger is taking time off, they will assign another manager to approve timesheets in their absence and this will be documented. Employees will also receive training from the payroll company applications.
Finding 2023-001
Criteria: Generally accepted accounting principles in the United States (GAAP) requires entities to establish and maintain effective internal controls over financial reporting to ensure accurate financial reports. A good system of internal controls requires contemporaneous timesheets be maintained for all employees and the timesheets should be signed by both the employee and the supervisor. Condition and Context: A payroll test was performed that encompassed all employees for two calendar months. Of the 137 timesheets selected for testing, 12 did not include the supervisor’s signature and 2 timesheets had hours that did not agree to the hours included on the payroll register. Cause: Management has represented that the supervisor was away and did not have access to the timekeeping system to approve the timesheets and gave verbal approval. Management has also represented that any hours submitted on the timesheet after the due date would not be included in the payroll. Effect: The approval by the supervisor was not able to be verified through the timekeeping system and the employees were not paid for hours worked as they missed the timesheet submission deadline. Auditor’s Recommendation: We recommend that management work with the supervisors to ensure they are approving the timesheets through the timekeeping system for documentation purposes or appoint an alternate approver in the absence of the assigned supervisor. Verbal approval is not an acceptable way of approving timesheets. We also recommend training for employees to ensure the timesheet hours are submitted timely. Views of Responsible Officials and Planned Corrective Actions: Employees are now notified when timesheets are due and are made aware of the processing deadline. Going forward, if a manger is taking time off, they will assign another manager to approve timesheets in their absence and this will be documented. Employees will also receive training from the payroll company applications.