Audit 3447

FY End
2022-09-30
Total Expended
$6.78M
Findings
6
Programs
22
Year: 2022 Accepted: 2023-11-16

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
2002 2022-004 Significant Deficiency - B
2003 2022-004 Significant Deficiency - B
2004 2022-004 Significant Deficiency - B
578444 2022-004 Significant Deficiency - B
578445 2022-004 Significant Deficiency - B
578446 2022-004 Significant Deficiency - B

Contacts

Name Title Type
TW9WHRB69KA5 Jocelyn Swain Auditee
9712716410 Gary McGee Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule of Federal Expenditures are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. IRCO uses a negotiated indirect cost rate of 10.90% The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of IRCO under programs of the federal government for the year ended September 30, 2022. 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of IRCO, it is not intended to and does not present the financial position, changes in net assets, or cash flows of IRCO. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between IRCO and agencies and departments of the Federal Government and all sub-awards to the organization by non-federal organizations pursuant to federal grants, contracts and similar agreements.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule of Federal Expenditures are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. IRCO uses a negotiated indirect cost rate of 10.90% Expenditures reported on the schedule are reported 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.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule of Federal Expenditures are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. IRCO uses a negotiated indirect cost rate of 10.90% IRCO has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding Number: 2022-004; Finding Type: Federal award finding; Federal Assistance Listing No.: 21.027; Program Name: Coronavirus State and Local Fiscal Recovery Funds; Federal Agency: Department of Treasury; Pass-Through Entity: Multnomah County, Worksystems, Inc., Prosper Portland; Grant Number: 2289-17-01, 20-30701, 21-30600, 21-30702, 21-30710, 22-30600, 22-30710, DCHS-SVCSGEN-12988-2021; DCHS-SVCSGEN-12994-2021, DCHS-SVCSGEN-14074-2022, HD-SVCSGEN-13829-2022; Federal Award Year: 2022; Control Deficiency Type: Significant deficiency over compliance; Instances of Noncompliance: Yes; Compliance requirement: Allowable Costs; Questions Costs: None; Repeat Finding: No Criteria: Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards, Appendix IV – Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Nonprofit Organizations, requires that organizations that have previously established indirect cost rates must submit a new indirect cost proposal to the cognizant agency for indirect costs within six months after the close of each fiscal year, unless approval is obtained from their cognizant agency to waive the requirement. Condition: During the audit, we requested a copy of the organization’s indirect cost rate proposal for audit purposes. The organization was unable to provide a copy to us, informing us that preparation and submission of the proposal was only required every two years, not annually. When we recommended that they confirm this with their cognizant agency, the organization was informed that submission of the proposal is indeed an annual requirement, and that they had missed the deadlines for both the fiscal 2021 and 2022 filings. Subsequently, the organization has received approval for an extension to May 31, 2023 for both years. Cause: Lack of internal controls to ensure that the indirect cost rate proposal is being submitted as required. Effect: The organization did not follow rules established under Uniform Guidance. Questioned costs: None. Audit Recommendation: We recommend that the organization implement internal control procedures to ensure that indirect cost rate proposal to be submitted in a timely manner. Management’s Response: Management has requested and was approved for an extension and will submit the indirect cost rate proposal before May 31, 2023. Thereafter, management will ensure that the indirect cost rate proposal is submitted annually
Finding Number: 2022-004; Finding Type: Federal award finding; Federal Assistance Listing No.: 21.027; Program Name: Coronavirus State and Local Fiscal Recovery Funds; Federal Agency: Department of Treasury; Pass-Through Entity: Multnomah County, Worksystems, Inc., Prosper Portland; Grant Number: 2289-17-01, 20-30701, 21-30600, 21-30702, 21-30710, 22-30600, 22-30710, DCHS-SVCSGEN-12988-2021; DCHS-SVCSGEN-12994-2021, DCHS-SVCSGEN-14074-2022, HD-SVCSGEN-13829-2022; Federal Award Year: 2022; Control Deficiency Type: Significant deficiency over compliance; Instances of Noncompliance: Yes; Compliance requirement: Allowable Costs; Questions Costs: None; Repeat Finding: No Criteria: Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards, Appendix IV – Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Nonprofit Organizations, requires that organizations that have previously established indirect cost rates must submit a new indirect cost proposal to the cognizant agency for indirect costs within six months after the close of each fiscal year, unless approval is obtained from their cognizant agency to waive the requirement. Condition: During the audit, we requested a copy of the organization’s indirect cost rate proposal for audit purposes. The organization was unable to provide a copy to us, informing us that preparation and submission of the proposal was only required every two years, not annually. When we recommended that they confirm this with their cognizant agency, the organization was informed that submission of the proposal is indeed an annual requirement, and that they had missed the deadlines for both the fiscal 2021 and 2022 filings. Subsequently, the organization has received approval for an extension to May 31, 2023 for both years. Cause: Lack of internal controls to ensure that the indirect cost rate proposal is being submitted as required. Effect: The organization did not follow rules established under Uniform Guidance. Questioned costs: None. Audit Recommendation: We recommend that the organization implement internal control procedures to ensure that indirect cost rate proposal to be submitted in a timely manner. Management’s Response: Management has requested and was approved for an extension and will submit the indirect cost rate proposal before May 31, 2023. Thereafter, management will ensure that the indirect cost rate proposal is submitted annually
Finding Number: 2022-004; Finding Type: Federal award finding; Federal Assistance Listing No.: 21.027; Program Name: Coronavirus State and Local Fiscal Recovery Funds; Federal Agency: Department of Treasury; Pass-Through Entity: Multnomah County, Worksystems, Inc., Prosper Portland; Grant Number: 2289-17-01, 20-30701, 21-30600, 21-30702, 21-30710, 22-30600, 22-30710, DCHS-SVCSGEN-12988-2021; DCHS-SVCSGEN-12994-2021, DCHS-SVCSGEN-14074-2022, HD-SVCSGEN-13829-2022; Federal Award Year: 2022; Control Deficiency Type: Significant deficiency over compliance; Instances of Noncompliance: Yes; Compliance requirement: Allowable Costs; Questions Costs: None; Repeat Finding: No Criteria: Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards, Appendix IV – Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Nonprofit Organizations, requires that organizations that have previously established indirect cost rates must submit a new indirect cost proposal to the cognizant agency for indirect costs within six months after the close of each fiscal year, unless approval is obtained from their cognizant agency to waive the requirement. Condition: During the audit, we requested a copy of the organization’s indirect cost rate proposal for audit purposes. The organization was unable to provide a copy to us, informing us that preparation and submission of the proposal was only required every two years, not annually. When we recommended that they confirm this with their cognizant agency, the organization was informed that submission of the proposal is indeed an annual requirement, and that they had missed the deadlines for both the fiscal 2021 and 2022 filings. Subsequently, the organization has received approval for an extension to May 31, 2023 for both years. Cause: Lack of internal controls to ensure that the indirect cost rate proposal is being submitted as required. Effect: The organization did not follow rules established under Uniform Guidance. Questioned costs: None. Audit Recommendation: We recommend that the organization implement internal control procedures to ensure that indirect cost rate proposal to be submitted in a timely manner. Management’s Response: Management has requested and was approved for an extension and will submit the indirect cost rate proposal before May 31, 2023. Thereafter, management will ensure that the indirect cost rate proposal is submitted annually
Finding Number: 2022-004; Finding Type: Federal award finding; Federal Assistance Listing No.: 21.027; Program Name: Coronavirus State and Local Fiscal Recovery Funds; Federal Agency: Department of Treasury; Pass-Through Entity: Multnomah County, Worksystems, Inc., Prosper Portland; Grant Number: 2289-17-01, 20-30701, 21-30600, 21-30702, 21-30710, 22-30600, 22-30710, DCHS-SVCSGEN-12988-2021; DCHS-SVCSGEN-12994-2021, DCHS-SVCSGEN-14074-2022, HD-SVCSGEN-13829-2022; Federal Award Year: 2022; Control Deficiency Type: Significant deficiency over compliance; Instances of Noncompliance: Yes; Compliance requirement: Allowable Costs; Questions Costs: None; Repeat Finding: No Criteria: Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards, Appendix IV – Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Nonprofit Organizations, requires that organizations that have previously established indirect cost rates must submit a new indirect cost proposal to the cognizant agency for indirect costs within six months after the close of each fiscal year, unless approval is obtained from their cognizant agency to waive the requirement. Condition: During the audit, we requested a copy of the organization’s indirect cost rate proposal for audit purposes. The organization was unable to provide a copy to us, informing us that preparation and submission of the proposal was only required every two years, not annually. When we recommended that they confirm this with their cognizant agency, the organization was informed that submission of the proposal is indeed an annual requirement, and that they had missed the deadlines for both the fiscal 2021 and 2022 filings. Subsequently, the organization has received approval for an extension to May 31, 2023 for both years. Cause: Lack of internal controls to ensure that the indirect cost rate proposal is being submitted as required. Effect: The organization did not follow rules established under Uniform Guidance. Questioned costs: None. Audit Recommendation: We recommend that the organization implement internal control procedures to ensure that indirect cost rate proposal to be submitted in a timely manner. Management’s Response: Management has requested and was approved for an extension and will submit the indirect cost rate proposal before May 31, 2023. Thereafter, management will ensure that the indirect cost rate proposal is submitted annually
Finding Number: 2022-004; Finding Type: Federal award finding; Federal Assistance Listing No.: 21.027; Program Name: Coronavirus State and Local Fiscal Recovery Funds; Federal Agency: Department of Treasury; Pass-Through Entity: Multnomah County, Worksystems, Inc., Prosper Portland; Grant Number: 2289-17-01, 20-30701, 21-30600, 21-30702, 21-30710, 22-30600, 22-30710, DCHS-SVCSGEN-12988-2021; DCHS-SVCSGEN-12994-2021, DCHS-SVCSGEN-14074-2022, HD-SVCSGEN-13829-2022; Federal Award Year: 2022; Control Deficiency Type: Significant deficiency over compliance; Instances of Noncompliance: Yes; Compliance requirement: Allowable Costs; Questions Costs: None; Repeat Finding: No Criteria: Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards, Appendix IV – Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Nonprofit Organizations, requires that organizations that have previously established indirect cost rates must submit a new indirect cost proposal to the cognizant agency for indirect costs within six months after the close of each fiscal year, unless approval is obtained from their cognizant agency to waive the requirement. Condition: During the audit, we requested a copy of the organization’s indirect cost rate proposal for audit purposes. The organization was unable to provide a copy to us, informing us that preparation and submission of the proposal was only required every two years, not annually. When we recommended that they confirm this with their cognizant agency, the organization was informed that submission of the proposal is indeed an annual requirement, and that they had missed the deadlines for both the fiscal 2021 and 2022 filings. Subsequently, the organization has received approval for an extension to May 31, 2023 for both years. Cause: Lack of internal controls to ensure that the indirect cost rate proposal is being submitted as required. Effect: The organization did not follow rules established under Uniform Guidance. Questioned costs: None. Audit Recommendation: We recommend that the organization implement internal control procedures to ensure that indirect cost rate proposal to be submitted in a timely manner. Management’s Response: Management has requested and was approved for an extension and will submit the indirect cost rate proposal before May 31, 2023. Thereafter, management will ensure that the indirect cost rate proposal is submitted annually
Finding Number: 2022-004; Finding Type: Federal award finding; Federal Assistance Listing No.: 21.027; Program Name: Coronavirus State and Local Fiscal Recovery Funds; Federal Agency: Department of Treasury; Pass-Through Entity: Multnomah County, Worksystems, Inc., Prosper Portland; Grant Number: 2289-17-01, 20-30701, 21-30600, 21-30702, 21-30710, 22-30600, 22-30710, DCHS-SVCSGEN-12988-2021; DCHS-SVCSGEN-12994-2021, DCHS-SVCSGEN-14074-2022, HD-SVCSGEN-13829-2022; Federal Award Year: 2022; Control Deficiency Type: Significant deficiency over compliance; Instances of Noncompliance: Yes; Compliance requirement: Allowable Costs; Questions Costs: None; Repeat Finding: No Criteria: Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards, Appendix IV – Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Nonprofit Organizations, requires that organizations that have previously established indirect cost rates must submit a new indirect cost proposal to the cognizant agency for indirect costs within six months after the close of each fiscal year, unless approval is obtained from their cognizant agency to waive the requirement. Condition: During the audit, we requested a copy of the organization’s indirect cost rate proposal for audit purposes. The organization was unable to provide a copy to us, informing us that preparation and submission of the proposal was only required every two years, not annually. When we recommended that they confirm this with their cognizant agency, the organization was informed that submission of the proposal is indeed an annual requirement, and that they had missed the deadlines for both the fiscal 2021 and 2022 filings. Subsequently, the organization has received approval for an extension to May 31, 2023 for both years. Cause: Lack of internal controls to ensure that the indirect cost rate proposal is being submitted as required. Effect: The organization did not follow rules established under Uniform Guidance. Questioned costs: None. Audit Recommendation: We recommend that the organization implement internal control procedures to ensure that indirect cost rate proposal to be submitted in a timely manner. Management’s Response: Management has requested and was approved for an extension and will submit the indirect cost rate proposal before May 31, 2023. Thereafter, management will ensure that the indirect cost rate proposal is submitted annually