Audit 322891

Finding 2023-002 – Noncompliance and Significant Deficiency over Reporting Criteria The Organization is required to file quarterly financial and performance reports. Internal controls should be in place to review the reports prior to filing to ensure they are accurate. Documentation should be maintained showing evidence of review and approval. Condition During testing, detail transactions were traced to the financial reports submitted to ensure the accuracy of the reports. In one instance, the amount claimed for reimbursement on the financial reports did not agree to the backup documentation or detail listing of expenditures incurred under the grant. In addition, documentation was not maintained showing evidence of review and approval of the reports prior to submission. Cause The Organization did not have appropriate internal controls in place over reporting. Effect The Organization may file inaccurate reports. Questioned Costs Known questioned costs were $38. Recommendations We recommend the Organization implement internal controls to ensure reports are reviewed for accuracy prior to submission. In addition, we recommend these controls be documented. Views of Responsible Officials We have increased personnel and have the support needed to review for accuracy and documentation.

Finding 2023-003 - Noncompliance and Significant Deficiency over Allowable Activities and Costs Criteria In accordance with 2 CFR 200.430(i)(1), the Organization is required to maintain documentation of personnel expenses that are “based on records that accurately reflect the work performed. These records must: i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; ii) Be incorporated into the official records of the non-Federal entity; iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities.” Condition During testing of payroll transactions, we were unable to agree direct costs charged to the grant to the detail backup documentation retained. In addition, one individual, who was 100% funded by the grant, had costs in excess of 100% of compensated activities charged to the grant. Internal controls were not present or functioning to prevent excess costs from being allocated to the grant. Cause The Organization did not have appropriate internal controls in place over allowable costs and allowable activities which allowed for inaccuracies in payroll amounts claimed for reimbursement. Effect Payroll charges to the grant were unsupported. Questioned Costs Projected questioned costs were $5,073. Recommendations We recommend the Organization implement internal controls to ensure direct costs reported and reimbursed under the grant are accurate and allowable. Views of Responsible Officials We have increased personnel and have the support needed to implement our accounting policies.

Finding 2023-004 - Noncompliance and Significant Deficiency over Period of Performance Criteria The grant agreement stipulates the project period is December 1, 2021 through November 30, 2023. Condition During testing performed, we identified one expense with an invoice date outside the period of performance. Internal controls should be present to ensure only expenses incurred within the period of performance are allocated to the grant. Cause The Organization did not have appropriate internal controls in place to prevent expenditures outside the period for performance from being claimed for reimbursement. Effect Grant funds were spent on costs incurred outside the project period. Questioned Costs Questioned costs were $806. Recommendations We recommend the Organization follow the project period outlined in the grant agreement. In addition, we recommend the Organization institute internal controls to ensure period of performance requirements are followed. Views of Responsible Officials This was allowed by the grantor without proper documentation, and we learned from this experience.

Finding 2023-002 – Noncompliance and Significant Deficiency over Reporting Criteria The Organization is required to file quarterly financial and performance reports. Internal controls should be in place to review the reports prior to filing to ensure they are accurate. Documentation should be maintained showing evidence of review and approval. Condition During testing, detail transactions were traced to the financial reports submitted to ensure the accuracy of the reports. In one instance, the amount claimed for reimbursement on the financial reports did not agree to the backup documentation or detail listing of expenditures incurred under the grant. In addition, documentation was not maintained showing evidence of review and approval of the reports prior to submission. Cause The Organization did not have appropriate internal controls in place over reporting. Effect The Organization may file inaccurate reports. Questioned Costs Known questioned costs were $38. Recommendations We recommend the Organization implement internal controls to ensure reports are reviewed for accuracy prior to submission. In addition, we recommend these controls be documented. Views of Responsible Officials We have increased personnel and have the support needed to review for accuracy and documentation.

Finding 2023-003 - Noncompliance and Significant Deficiency over Allowable Activities and Costs Criteria In accordance with 2 CFR 200.430(i)(1), the Organization is required to maintain documentation of personnel expenses that are “based on records that accurately reflect the work performed. These records must: i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; ii) Be incorporated into the official records of the non-Federal entity; iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities.” Condition During testing of payroll transactions, we were unable to agree direct costs charged to the grant to the detail backup documentation retained. In addition, one individual, who was 100% funded by the grant, had costs in excess of 100% of compensated activities charged to the grant. Internal controls were not present or functioning to prevent excess costs from being allocated to the grant. Cause The Organization did not have appropriate internal controls in place over allowable costs and allowable activities which allowed for inaccuracies in payroll amounts claimed for reimbursement. Effect Payroll charges to the grant were unsupported. Questioned Costs Projected questioned costs were $5,073. Recommendations We recommend the Organization implement internal controls to ensure direct costs reported and reimbursed under the grant are accurate and allowable. Views of Responsible Officials We have increased personnel and have the support needed to implement our accounting policies.

Finding 2023-004 - Noncompliance and Significant Deficiency over Period of Performance Criteria The grant agreement stipulates the project period is December 1, 2021 through November 30, 2023. Condition During testing performed, we identified one expense with an invoice date outside the period of performance. Internal controls should be present to ensure only expenses incurred within the period of performance are allocated to the grant. Cause The Organization did not have appropriate internal controls in place to prevent expenditures outside the period for performance from being claimed for reimbursement. Effect Grant funds were spent on costs incurred outside the project period. Questioned Costs Questioned costs were $806. Recommendations We recommend the Organization follow the project period outlined in the grant agreement. In addition, we recommend the Organization institute internal controls to ensure period of performance requirements are followed. Views of Responsible Officials This was allowed by the grantor without proper documentation, and we learned from this experience.