Audit 328726

Finding: Identification of federal program: Assistance Listing No. 93.788 – Opioid STR Criteria or specific requirement: Section 200.470 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) governs the allowability of charges to federal awards as it relates to taxes. Specifically, taxes that the recipient or subrecipient is required to pay and which are paid or accrued in accordance with accounting principles generally accepted in the United States of America (GAAP) are generally allowable. Taxes for which exemptions are available to the recipient based on exemptions afforded by the federal government are unallowable. Condition: As a not-for-profit organization, OhioGuidestone is exempt from paying sales taxes. During the course of conducting internal control testing over allowable costs, we identified one instance where sales tax associated with a program supplies purchase was inappropriately to the federal program. Cause: The Organization’s existing internal controls failed to detect this charge. Effect or potential effect: Unallowable costs can be charged to federal programs if appropriate internal controls are not in place. Questioned cost: The sales tax associated with the supplies purchase selected for testing amounted to $107.19. Context: The Organization charged unallowable costs to the program. Recommendation: We recommend that the Organization review existing policies and procedures and make enhancements where appropriate to ensure that all costs charged to federal awards are allowable. Corrective Actions Taken or Planned: OhioGuidestone acknowledges and agrees with this finding. Management will host a training for relavent employees to ensure they are trained on the Allowable Costs/Costs Principles related to their contracts. We will also review this process to enhance controls in this area. Name of contact person responsible for corrective action: Joseph Ziegler, Chief Financial Officer Anticipated completion date: October 30, 2024

Finding: Identification of federal program: Assistance Listing No. 93.788 – Opioid STR Criteria or specific requirement: Section 200.470 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) governs the allowability of charges to federal awards as it relates to taxes. Specifically, taxes that the recipient or subrecipient is required to pay and which are paid or accrued in accordance with accounting principles generally accepted in the United States of America (GAAP) are generally allowable. Taxes for which exemptions are available to the recipient based on exemptions afforded by the federal government are unallowable. Condition: As a not-for-profit organization, OhioGuidestone is exempt from paying sales taxes. During the course of conducting internal control testing over allowable costs, we identified one instance where sales tax associated with a program supplies purchase was inappropriately to the federal program. Cause: The Organization’s existing internal controls failed to detect this charge. Effect or potential effect: Unallowable costs can be charged to federal programs if appropriate internal controls are not in place. Questioned cost: The sales tax associated with the supplies purchase selected for testing amounted to $107.19. Context: The Organization charged unallowable costs to the program. Recommendation: We recommend that the Organization review existing policies and procedures and make enhancements where appropriate to ensure that all costs charged to federal awards are allowable. Corrective Actions Taken or Planned: OhioGuidestone acknowledges and agrees with this finding. Management will host a training for relavent employees to ensure they are trained on the Allowable Costs/Costs Principles related to their contracts. We will also review this process to enhance controls in this area. Name of contact person responsible for corrective action: Joseph Ziegler, Chief Financial Officer Anticipated completion date: October 30, 2024