Audit 351204

Criteria: Federal regulations 2 CFR Part 200, Sect 200.430(g) requires that wages chargerd to federal programs, including amounts claimed or used for matching, must be based on records that accuratley reflect work performed. Budget estimates alone do not qualify as support for charges to federal awards, but may be used for interim accounting purposes (with restrictions). Condition: The Alliance did maintain acurate time sheeets for time worked, however time was alloacted to the federal grant based on the year-to-date percentag eof time spent on the federal program and was not adjusted to actual time spent based on the pay period and times worked in the corresponding pay period. Additionally, fringe benefits were not allocated to the federal program based on time worked in the federal program. Cause: Management was unaware of the requirement to adjust to actual time spent on the federal program. Effect: Wages, payroll taxes and fring benefits charged to the federal program are in excess of actutal amounts based on time spent working in the federal program. Questions costs: $33,921. Recommendation: We recommend that mamangement allocate time to federal programs based on time spent per pay period. If estimates will be used during the fiscal year, an adjustment should be made at year-end to adjust to actual time worked in the federal program. Additionally, fringe benefits should be allocated to the fedral program in a manner consistent with the pattern of benefits attributable to employees whose salaries are chargebable to the federal award. View of Responsible Officials: Management agrees with the finding and recommendation. See attached Corrective Action Plan.

Criteria: Federal regulations 2 CFR Part 200, Sect 200.403-200.476 defines the rules for allowable costs for federal programs. The costs must be reasonable and necessary and include supporting documenatation for all expenditures including invoices, receipts and purchase orders. Condition: The Alliance had missing or incomplete documentation for costs assigned to the grant in addition to ineligible expenses and did not allocate indirect costs directly within the general ledger. Cause:Management's internal controls over expenses did not specifically address proper documentation and recording of expenses. Effect: As a result of not having proper documentation, the determination of whether or or not a cost is properly charged to a grant cannot be determined. Requests for reimbursements of grant funds are not prepared to accurately report direct and indirect costs. Additionally, sales taxes paid and costs outside ot the grant period are unallowable costs. Questioned Costs: None. Recommendation: We recommend that managemet adopt procedures that require complete documenation for all amounts expended, which includes all credit card charges. Amounts that are to be charged to the federal grant program should be reviewed to determine whether the cost is first, allowed, and if allowed, whether the cost is a direct or indirect cost. Direct and indirect costs should be properly allocated and recorded in the general ledger. Additionally, employees responsible for charging costs to the federal program should receive training in determining allowable and unallowable costs. Views of Responsible Officials: Management agrees with the finding and recommendation. See the attached Corrective Action Plan.

Criteria: Federal regulations 2 CFR Part 200, Sect 200.430(g) requires that wages chargerd to federal programs, including amounts claimed or used for matching, must be based on records that accuratley reflect work performed. Budget estimates alone do not qualify as support for charges to federal awards, but may be used for interim accounting purposes (with restrictions). Condition: The Alliance did maintain acurate time sheeets for time worked, however time was alloacted to the federal grant based on the year-to-date percentag eof time spent on the federal program and was not adjusted to actual time spent based on the pay period and times worked in the corresponding pay period. Additionally, fringe benefits were not allocated to the federal program based on time worked in the federal program. Cause: Management was unaware of the requirement to adjust to actual time spent on the federal program. Effect: Wages, payroll taxes and fring benefits charged to the federal program are in excess of actutal amounts based on time spent working in the federal program. Questions costs: $33,921. Recommendation: We recommend that mamangement allocate time to federal programs based on time spent per pay period. If estimates will be used during the fiscal year, an adjustment should be made at year-end to adjust to actual time worked in the federal program. Additionally, fringe benefits should be allocated to the fedral program in a manner consistent with the pattern of benefits attributable to employees whose salaries are chargebable to the federal award. View of Responsible Officials: Management agrees with the finding and recommendation. See attached Corrective Action Plan.

Criteria: Federal regulations 2 CFR Part 200, Sect 200.403-200.476 defines the rules for allowable costs for federal programs. The costs must be reasonable and necessary and include supporting documenatation for all expenditures including invoices, receipts and purchase orders. Condition: The Alliance had missing or incomplete documentation for costs assigned to the grant in addition to ineligible expenses and did not allocate indirect costs directly within the general ledger. Cause:Management's internal controls over expenses did not specifically address proper documentation and recording of expenses. Effect: As a result of not having proper documentation, the determination of whether or or not a cost is properly charged to a grant cannot be determined. Requests for reimbursements of grant funds are not prepared to accurately report direct and indirect costs. Additionally, sales taxes paid and costs outside ot the grant period are unallowable costs. Questioned Costs: None. Recommendation: We recommend that managemet adopt procedures that require complete documenation for all amounts expended, which includes all credit card charges. Amounts that are to be charged to the federal grant program should be reviewed to determine whether the cost is first, allowed, and if allowed, whether the cost is a direct or indirect cost. Direct and indirect costs should be properly allocated and recorded in the general ledger. Additionally, employees responsible for charging costs to the federal program should receive training in determining allowable and unallowable costs. Views of Responsible Officials: Management agrees with the finding and recommendation. See the attached Corrective Action Plan.