FAC Explorer

Audit 33534

FY End
2022-06-30
Total Expended
$19.72M
Findings
2
Programs
4
Organization: United Way of Monterey County (CA)
Year: 2022 Accepted: 2023-03-29
Auditor: Hutchinson and Bloodgood LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
31041 2022-001 Material Weakness - B
607483 2022-001 Material Weakness - B

Programs

ALN Program Spent Major Findings
21.023 Emergency Rental Assistance Program $19.53M Yes 1
94.006 Americorps $89,518 - 0
93.569 Community Services Block Grant $54,985 - 0
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $50,346 - 0

Contacts

Name Title Type
D24CKKFDHH75 Katy Castagna Auditee
8313728026 Kim Said Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards includes the Federal award activity of United Way of Monterey County, Inc. (the Organization), under programs of the federal government for the year ended June 30, 2022, 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). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, activities, or cash flows of the Organization. The amounts shown as current year expenses represent only the federal portion of the program costs. Entire program costs, including the Organization's portion, may be more than shown. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.

Finding Details

Finding 2022-001
Criteria: United Way of Monterey County (?UWMC?) must establish and maintain effective internal controls over subrecipient monitoring of Emergency Rental Assistance Program (ERAP) federal awards with pass through agencies, contracted with UWMC to assist in administering ERAP awards. Condition: UWMC utilizes partnering agencies to approve eligibility and distribute ERAP funding. The partnering agencies submit the approved recipient?s information and the total approved financial assistance through an online software, maintained by UWMC. UWMC then reimburses the agencies for the approved financial assistance and related administrative costs, based on a contracted amount. Cause: In October 2021, UWMC discontinued the use of its initial online software, Smart Referral Network (SRN) software, as it was determined to be ineffective and was not being properly utilized by the partnering agencies. From October 2021 through March 2022, UWMC requested all partnering agencies to submit total ERAP expenditures directly to UWMC for reimbursement, on a monthly basis. Effective March 2022, a new online software (Neighborly) was employed and is required to be used by the partnering agencies. During the change in systems, no formal reconciliation was performed by UWMC to verify total expenditures accrued for by UWMC agreed to total expenditures by the partnering agencies. Effect: Expenditures and related payables accrued for by UWMC did not agree to the records of the partnering agencies for the total ERAP expenditures for the fiscal year ended June 30, 2022. This resulted in an overstatement of ERAP award expenditures and accrued payables to the partnering agencies of $967,865. Recommendation: We recommend UWMC ensure timely reconciliations are completed with the partnering agencies. We recommend UWMC require the partnering agencies to submit all expenditures and required recipient information through the online software to constitute an allowable reimbursement. This will ensure the use of federal funds by partnering agencies is accurately accounted for and that proper documentation is maintained for approved ERAP recipients.
Finding 2022-001
Criteria: United Way of Monterey County (?UWMC?) must establish and maintain effective internal controls over subrecipient monitoring of Emergency Rental Assistance Program (ERAP) federal awards with pass through agencies, contracted with UWMC to assist in administering ERAP awards. Condition: UWMC utilizes partnering agencies to approve eligibility and distribute ERAP funding. The partnering agencies submit the approved recipient?s information and the total approved financial assistance through an online software, maintained by UWMC. UWMC then reimburses the agencies for the approved financial assistance and related administrative costs, based on a contracted amount. Cause: In October 2021, UWMC discontinued the use of its initial online software, Smart Referral Network (SRN) software, as it was determined to be ineffective and was not being properly utilized by the partnering agencies. From October 2021 through March 2022, UWMC requested all partnering agencies to submit total ERAP expenditures directly to UWMC for reimbursement, on a monthly basis. Effective March 2022, a new online software (Neighborly) was employed and is required to be used by the partnering agencies. During the change in systems, no formal reconciliation was performed by UWMC to verify total expenditures accrued for by UWMC agreed to total expenditures by the partnering agencies. Effect: Expenditures and related payables accrued for by UWMC did not agree to the records of the partnering agencies for the total ERAP expenditures for the fiscal year ended June 30, 2022. This resulted in an overstatement of ERAP award expenditures and accrued payables to the partnering agencies of $967,865. Recommendation: We recommend UWMC ensure timely reconciliations are completed with the partnering agencies. We recommend UWMC require the partnering agencies to submit all expenditures and required recipient information through the online software to constitute an allowable reimbursement. This will ensure the use of federal funds by partnering agencies is accurately accounted for and that proper documentation is maintained for approved ERAP recipients.