Criteria or specific requirement – Management is required to ensure that there
are sufficient internal controls in place over payroll costs charged to the program.
This includes internal controls that ensure that all supporting documentation is
retained to demonstrate compliance.
Conditions – Documentation supporting employee costs charged to the program
was unavailable or incomplete for some selections.
Context – During our testing of allowable costs and activities, we selected 18
journal entries for payroll testing. The 18 journal entries totaled $85,311. Of the
total, $67,576 were for transactions occurring in the year ended December 31,
2022 and $17,735 were for prior periods. The Organization provided us detail
listings for each of the 18 journal entries which included employees and charges
that supported the journal entry and we were able to make sub selections to the
employee level. For each employee selected, we were able to verify the validity
of the employee and the approved rate of pay. For 2022 transactions, we were
able to agree hours worked to approved time records. However, for transactions
occurring prior to 2022 time records were not available. Total payroll costs
charged to the program was $1,060,356.
Cause – For periods for which payroll records were not available, the Organization
was using a different payroll process system. As a result, such records could no
longer be accessed.
Recommendation – We recommend that management ensure that records are
retained to support the validity of expenses charged to Federal programs.
Views of responsible officials and planned corrective actions – Management
agrees with the finding and in the future will take steps to retain or insure that
access to records continues to be available in instances of system migrations.
Criteria or specific requirement – Management is required to ensure that there
are sufficient internal controls in place over expenses charged to the program.
This includes internal controls that ensure that expenditures are verifiable with
adequate supporting documentation.
Conditions – Documentation for certain expenditures was not maintained to
support the expenditure.
Context – During our testing of allowable costs and activities, we sampled twentytwo
non‐payroll expenditures totaling $13,043. The total population of nonpayroll
expenditures charged to the program was $593,341. In our sample, we
noted that three selections of expenditures totaling $758 did not have adequate
supporting documentation on file. In the same sample, we also identified five
expenditures totaling $6,406 which may be unallowable and is reported as a
separate finding (see finding 2022‐003).
Cause – Supporting documentation was not consistently maintained.
Effect –Unallowable costs may have been charged to the program.
Recommendation – We recommend that management ensure that supporting
documentation for expenses charged to Federal programs be maintained to
ensure future compliance with applicable federal cost rules.
Criteria or specific requirement – Management is required to ensure that cost
charged to the program are allowable costs. This include having internal controls
that ensure that all costs are allowable costs.
Conditions – Unallowable costs may have been charged to the program.
Context – During our testing of allowable costs and activities, we noted that the
Organization charged mileage and YUSA fair share expenses to the program.
Sampled unallowable costs related to mileage was $5,339 and YUSA fair share
was $1,067. Through further audit procedures we determined that total costs
related to the charged program for mileage and YUSA fair share was $26,956 and
$41,019, respectively.
Cause – Existing procedures surrounding the allowable costs of non‐payroll costs
were not followed.
Effect – Mileage and YUSA fair share was charged to the program which may be
unallowable costs.
Recommendation – We recommend that management ensure that non‐payroll
costs charged to the program are allowable costs to ensure future compliance
with applicable federal cost rules.
Criteria or specific requirement – Management is required to ensure that there
are sufficient internal controls in place over payroll costs charged to the program.
This includes internal controls that ensure that all supporting documentation is
retained to demonstrate compliance.
Conditions – Documentation supporting employee costs charged to the program
was unavailable or incomplete for some selections.
Context – During our testing of allowable costs and activities, we selected 18
journal entries for payroll testing. The 18 journal entries totaled $85,311. Of the
total, $67,576 were for transactions occurring in the year ended December 31,
2022 and $17,735 were for prior periods. The Organization provided us detail
listings for each of the 18 journal entries which included employees and charges
that supported the journal entry and we were able to make sub selections to the
employee level. For each employee selected, we were able to verify the validity
of the employee and the approved rate of pay. For 2022 transactions, we were
able to agree hours worked to approved time records. However, for transactions
occurring prior to 2022 time records were not available. Total payroll costs
charged to the program was $1,060,356.
Cause – For periods for which payroll records were not available, the Organization
was using a different payroll process system. As a result, such records could no
longer be accessed.
Recommendation – We recommend that management ensure that records are
retained to support the validity of expenses charged to Federal programs.
Views of responsible officials and planned corrective actions – Management
agrees with the finding and in the future will take steps to retain or insure that
access to records continues to be available in instances of system migrations.
Criteria or specific requirement – Management is required to ensure that there
are sufficient internal controls in place over expenses charged to the program.
This includes internal controls that ensure that expenditures are verifiable with
adequate supporting documentation.
Conditions – Documentation for certain expenditures was not maintained to
support the expenditure.
Context – During our testing of allowable costs and activities, we sampled twentytwo
non‐payroll expenditures totaling $13,043. The total population of nonpayroll
expenditures charged to the program was $593,341. In our sample, we
noted that three selections of expenditures totaling $758 did not have adequate
supporting documentation on file. In the same sample, we also identified five
expenditures totaling $6,406 which may be unallowable and is reported as a
separate finding (see finding 2022‐003).
Cause – Supporting documentation was not consistently maintained.
Effect –Unallowable costs may have been charged to the program.
Recommendation – We recommend that management ensure that supporting
documentation for expenses charged to Federal programs be maintained to
ensure future compliance with applicable federal cost rules.
Criteria or specific requirement – Management is required to ensure that cost
charged to the program are allowable costs. This include having internal controls
that ensure that all costs are allowable costs.
Conditions – Unallowable costs may have been charged to the program.
Context – During our testing of allowable costs and activities, we noted that the
Organization charged mileage and YUSA fair share expenses to the program.
Sampled unallowable costs related to mileage was $5,339 and YUSA fair share
was $1,067. Through further audit procedures we determined that total costs
related to the charged program for mileage and YUSA fair share was $26,956 and
$41,019, respectively.
Cause – Existing procedures surrounding the allowable costs of non‐payroll costs
were not followed.
Effect – Mileage and YUSA fair share was charged to the program which may be
unallowable costs.
Recommendation – We recommend that management ensure that non‐payroll
costs charged to the program are allowable costs to ensure future compliance
with applicable federal cost rules.