#2024-004 – Major Federal Award Finding – Period of Performance
Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance
This is a repeat of prior year finding #2023-010.
Criteria/Condition: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance.
Questioned Costs: $8,324
Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $35,000 was selected from a population of approximately $577,000 of non-payroll expenditures. An amount of $503 from one invoice that was charged to the Crime Victim Assistance program was related to the year ending September 30, 2025 and was inappropriately charged to the grant during 2024. Questioned costs are estimated by projecting the error identified in the sample tested to the population of non-payroll expenditures of the Crime Victim Assistance program.
Cause/Context: Controls were put in place during the year ending September 30, 2024 to review invoices and assign them to the appropriate grant period; however, these controls were not operating as designed. Two expenditures out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant were for a contracted annual service that covered multiple performance periods but was billed in its entirety to the current fiscal year. One of these contracted annual services had the correct annual cost allocated to the grant during the year ended September 30, 2024 and did not have questioned costs included above. The other contracted annual service invoice was included in the questioned costs above. One other expenditure out of forty non-payroll related expenditures tested was for services provided in the prior performance period and was initially billed to the grant during 2024. Prior to September 30, 2024, this expenditure was removed from a subsequent grant bill after the auditor discovered the error during interim procedures. This expenditure was not included above in questioned costs as it was removed from grant expenditures during 2024.
Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year.
Recommendation: We recommend procedures are consistently performed to review for proper grant period when recording transactions and creating monthly reimbursement requests.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures.
1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice.
2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.
#2024-005 – Major Federal Award Finding – Allocation of Costs
Nature of Finding: Compliance Finding Allowable Costs and Material Weakness in Internal Controls over Compliance
Criteria/Condition: Federal regulations 2 CFR 200.405 provide that costs benefiting two or more projects in proportions that can be easily determined must be allocated to the projects based on the proportional benefit. If proportions cannot be easily determined, the costs may be allocated to the benefitted projects on a reasonable and documented basis.
Questioned Costs: Not able to be determined.
Identification of How Questioned Costs Were Computed: Of the non-payroll major program expenditures selected for testing, certain costs charged to the major program did not have proper support for the allocation percentages that were utilized, or they were missing documented approval for the allocation percentages. Some of the allocation percentages utilized were not consistent throughout the year. These matters are not isolated or contained to any particular type of expenditure. There was no meaningful methodology identified to quantify or extend the errors to the population.
Cause/Context: Controls were not in place to evaluate the allocation of costs to grants based on proportional benefit provided to each grant. For 11 of the 40 non-payroll expenditures selected for testing, allocation percentages were not properly supported or were missing documented approval.
Effect: Expenditures that involve an allocation of costs between grants are not properly supported. The lack of controls results in questioned costs as a disproportionate amount of expenditures may be charged to the federal program.
Recommendation: We recommend management establish procedures and controls to allocate costs between grants based upon actual costs attributed to the grant and the particular expenditure allowed by the grant. Any such allocations should be supported by activity-level substantiation and be reviewed. Documentation of the allocation methodology, review and approval should be maintained.
Views of Responsible Officials and Planned Corrective Actions
Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO.
#2024-004 – Major Federal Award Finding – Period of Performance
Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance
This is a repeat of prior year finding #2023-010.
Criteria/Condition: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance.
Questioned Costs: $8,324
Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $35,000 was selected from a population of approximately $577,000 of non-payroll expenditures. An amount of $503 from one invoice that was charged to the Crime Victim Assistance program was related to the year ending September 30, 2025 and was inappropriately charged to the grant during 2024. Questioned costs are estimated by projecting the error identified in the sample tested to the population of non-payroll expenditures of the Crime Victim Assistance program.
Cause/Context: Controls were put in place during the year ending September 30, 2024 to review invoices and assign them to the appropriate grant period; however, these controls were not operating as designed. Two expenditures out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant were for a contracted annual service that covered multiple performance periods but was billed in its entirety to the current fiscal year. One of these contracted annual services had the correct annual cost allocated to the grant during the year ended September 30, 2024 and did not have questioned costs included above. The other contracted annual service invoice was included in the questioned costs above. One other expenditure out of forty non-payroll related expenditures tested was for services provided in the prior performance period and was initially billed to the grant during 2024. Prior to September 30, 2024, this expenditure was removed from a subsequent grant bill after the auditor discovered the error during interim procedures. This expenditure was not included above in questioned costs as it was removed from grant expenditures during 2024.
Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year.
Recommendation: We recommend procedures are consistently performed to review for proper grant period when recording transactions and creating monthly reimbursement requests.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures.
1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice.
2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.
#2024-005 – Major Federal Award Finding – Allocation of Costs
Nature of Finding: Compliance Finding Allowable Costs and Material Weakness in Internal Controls over Compliance
Criteria/Condition: Federal regulations 2 CFR 200.405 provide that costs benefiting two or more projects in proportions that can be easily determined must be allocated to the projects based on the proportional benefit. If proportions cannot be easily determined, the costs may be allocated to the benefitted projects on a reasonable and documented basis.
Questioned Costs: Not able to be determined.
Identification of How Questioned Costs Were Computed: Of the non-payroll major program expenditures selected for testing, certain costs charged to the major program did not have proper support for the allocation percentages that were utilized, or they were missing documented approval for the allocation percentages. Some of the allocation percentages utilized were not consistent throughout the year. These matters are not isolated or contained to any particular type of expenditure. There was no meaningful methodology identified to quantify or extend the errors to the population.
Cause/Context: Controls were not in place to evaluate the allocation of costs to grants based on proportional benefit provided to each grant. For 11 of the 40 non-payroll expenditures selected for testing, allocation percentages were not properly supported or were missing documented approval.
Effect: Expenditures that involve an allocation of costs between grants are not properly supported. The lack of controls results in questioned costs as a disproportionate amount of expenditures may be charged to the federal program.
Recommendation: We recommend management establish procedures and controls to allocate costs between grants based upon actual costs attributed to the grant and the particular expenditure allowed by the grant. Any such allocations should be supported by activity-level substantiation and be reviewed. Documentation of the allocation methodology, review and approval should be maintained.
Views of Responsible Officials and Planned Corrective Actions
Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO.
#2024-004 – Major Federal Award Finding – Period of Performance
Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance
This is a repeat of prior year finding #2023-010.
Criteria/Condition: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance.
Questioned Costs: $8,324
Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $35,000 was selected from a population of approximately $577,000 of non-payroll expenditures. An amount of $503 from one invoice that was charged to the Crime Victim Assistance program was related to the year ending September 30, 2025 and was inappropriately charged to the grant during 2024. Questioned costs are estimated by projecting the error identified in the sample tested to the population of non-payroll expenditures of the Crime Victim Assistance program.
Cause/Context: Controls were put in place during the year ending September 30, 2024 to review invoices and assign them to the appropriate grant period; however, these controls were not operating as designed. Two expenditures out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant were for a contracted annual service that covered multiple performance periods but was billed in its entirety to the current fiscal year. One of these contracted annual services had the correct annual cost allocated to the grant during the year ended September 30, 2024 and did not have questioned costs included above. The other contracted annual service invoice was included in the questioned costs above. One other expenditure out of forty non-payroll related expenditures tested was for services provided in the prior performance period and was initially billed to the grant during 2024. Prior to September 30, 2024, this expenditure was removed from a subsequent grant bill after the auditor discovered the error during interim procedures. This expenditure was not included above in questioned costs as it was removed from grant expenditures during 2024.
Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year.
Recommendation: We recommend procedures are consistently performed to review for proper grant period when recording transactions and creating monthly reimbursement requests.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures.
1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice.
2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.
#2024-005 – Major Federal Award Finding – Allocation of Costs
Nature of Finding: Compliance Finding Allowable Costs and Material Weakness in Internal Controls over Compliance
Criteria/Condition: Federal regulations 2 CFR 200.405 provide that costs benefiting two or more projects in proportions that can be easily determined must be allocated to the projects based on the proportional benefit. If proportions cannot be easily determined, the costs may be allocated to the benefitted projects on a reasonable and documented basis.
Questioned Costs: Not able to be determined.
Identification of How Questioned Costs Were Computed: Of the non-payroll major program expenditures selected for testing, certain costs charged to the major program did not have proper support for the allocation percentages that were utilized, or they were missing documented approval for the allocation percentages. Some of the allocation percentages utilized were not consistent throughout the year. These matters are not isolated or contained to any particular type of expenditure. There was no meaningful methodology identified to quantify or extend the errors to the population.
Cause/Context: Controls were not in place to evaluate the allocation of costs to grants based on proportional benefit provided to each grant. For 11 of the 40 non-payroll expenditures selected for testing, allocation percentages were not properly supported or were missing documented approval.
Effect: Expenditures that involve an allocation of costs between grants are not properly supported. The lack of controls results in questioned costs as a disproportionate amount of expenditures may be charged to the federal program.
Recommendation: We recommend management establish procedures and controls to allocate costs between grants based upon actual costs attributed to the grant and the particular expenditure allowed by the grant. Any such allocations should be supported by activity-level substantiation and be reviewed. Documentation of the allocation methodology, review and approval should be maintained.
Views of Responsible Officials and Planned Corrective Actions
Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO.
#2024-004 – Major Federal Award Finding – Period of Performance
Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance
This is a repeat of prior year finding #2023-010.
Criteria/Condition: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance.
Questioned Costs: $8,324
Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $35,000 was selected from a population of approximately $577,000 of non-payroll expenditures. An amount of $503 from one invoice that was charged to the Crime Victim Assistance program was related to the year ending September 30, 2025 and was inappropriately charged to the grant during 2024. Questioned costs are estimated by projecting the error identified in the sample tested to the population of non-payroll expenditures of the Crime Victim Assistance program.
Cause/Context: Controls were put in place during the year ending September 30, 2024 to review invoices and assign them to the appropriate grant period; however, these controls were not operating as designed. Two expenditures out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant were for a contracted annual service that covered multiple performance periods but was billed in its entirety to the current fiscal year. One of these contracted annual services had the correct annual cost allocated to the grant during the year ended September 30, 2024 and did not have questioned costs included above. The other contracted annual service invoice was included in the questioned costs above. One other expenditure out of forty non-payroll related expenditures tested was for services provided in the prior performance period and was initially billed to the grant during 2024. Prior to September 30, 2024, this expenditure was removed from a subsequent grant bill after the auditor discovered the error during interim procedures. This expenditure was not included above in questioned costs as it was removed from grant expenditures during 2024.
Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year.
Recommendation: We recommend procedures are consistently performed to review for proper grant period when recording transactions and creating monthly reimbursement requests.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures.
1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice.
2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.
#2024-005 – Major Federal Award Finding – Allocation of Costs
Nature of Finding: Compliance Finding Allowable Costs and Material Weakness in Internal Controls over Compliance
Criteria/Condition: Federal regulations 2 CFR 200.405 provide that costs benefiting two or more projects in proportions that can be easily determined must be allocated to the projects based on the proportional benefit. If proportions cannot be easily determined, the costs may be allocated to the benefitted projects on a reasonable and documented basis.
Questioned Costs: Not able to be determined.
Identification of How Questioned Costs Were Computed: Of the non-payroll major program expenditures selected for testing, certain costs charged to the major program did not have proper support for the allocation percentages that were utilized, or they were missing documented approval for the allocation percentages. Some of the allocation percentages utilized were not consistent throughout the year. These matters are not isolated or contained to any particular type of expenditure. There was no meaningful methodology identified to quantify or extend the errors to the population.
Cause/Context: Controls were not in place to evaluate the allocation of costs to grants based on proportional benefit provided to each grant. For 11 of the 40 non-payroll expenditures selected for testing, allocation percentages were not properly supported or were missing documented approval.
Effect: Expenditures that involve an allocation of costs between grants are not properly supported. The lack of controls results in questioned costs as a disproportionate amount of expenditures may be charged to the federal program.
Recommendation: We recommend management establish procedures and controls to allocate costs between grants based upon actual costs attributed to the grant and the particular expenditure allowed by the grant. Any such allocations should be supported by activity-level substantiation and be reviewed. Documentation of the allocation methodology, review and approval should be maintained.
Views of Responsible Officials and Planned Corrective Actions
Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO.
#2024-004 – Major Federal Award Finding – Period of Performance
Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance
This is a repeat of prior year finding #2023-010.
Criteria/Condition: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance.
Questioned Costs: $8,324
Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $35,000 was selected from a population of approximately $577,000 of non-payroll expenditures. An amount of $503 from one invoice that was charged to the Crime Victim Assistance program was related to the year ending September 30, 2025 and was inappropriately charged to the grant during 2024. Questioned costs are estimated by projecting the error identified in the sample tested to the population of non-payroll expenditures of the Crime Victim Assistance program.
Cause/Context: Controls were put in place during the year ending September 30, 2024 to review invoices and assign them to the appropriate grant period; however, these controls were not operating as designed. Two expenditures out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant were for a contracted annual service that covered multiple performance periods but was billed in its entirety to the current fiscal year. One of these contracted annual services had the correct annual cost allocated to the grant during the year ended September 30, 2024 and did not have questioned costs included above. The other contracted annual service invoice was included in the questioned costs above. One other expenditure out of forty non-payroll related expenditures tested was for services provided in the prior performance period and was initially billed to the grant during 2024. Prior to September 30, 2024, this expenditure was removed from a subsequent grant bill after the auditor discovered the error during interim procedures. This expenditure was not included above in questioned costs as it was removed from grant expenditures during 2024.
Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year.
Recommendation: We recommend procedures are consistently performed to review for proper grant period when recording transactions and creating monthly reimbursement requests.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures.
1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice.
2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.
#2024-005 – Major Federal Award Finding – Allocation of Costs
Nature of Finding: Compliance Finding Allowable Costs and Material Weakness in Internal Controls over Compliance
Criteria/Condition: Federal regulations 2 CFR 200.405 provide that costs benefiting two or more projects in proportions that can be easily determined must be allocated to the projects based on the proportional benefit. If proportions cannot be easily determined, the costs may be allocated to the benefitted projects on a reasonable and documented basis.
Questioned Costs: Not able to be determined.
Identification of How Questioned Costs Were Computed: Of the non-payroll major program expenditures selected for testing, certain costs charged to the major program did not have proper support for the allocation percentages that were utilized, or they were missing documented approval for the allocation percentages. Some of the allocation percentages utilized were not consistent throughout the year. These matters are not isolated or contained to any particular type of expenditure. There was no meaningful methodology identified to quantify or extend the errors to the population.
Cause/Context: Controls were not in place to evaluate the allocation of costs to grants based on proportional benefit provided to each grant. For 11 of the 40 non-payroll expenditures selected for testing, allocation percentages were not properly supported or were missing documented approval.
Effect: Expenditures that involve an allocation of costs between grants are not properly supported. The lack of controls results in questioned costs as a disproportionate amount of expenditures may be charged to the federal program.
Recommendation: We recommend management establish procedures and controls to allocate costs between grants based upon actual costs attributed to the grant and the particular expenditure allowed by the grant. Any such allocations should be supported by activity-level substantiation and be reviewed. Documentation of the allocation methodology, review and approval should be maintained.
Views of Responsible Officials and Planned Corrective Actions
Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO.
#2024-003 – Material Weakness: Independent Review and Approval
This is a repeat of prior year finding #2023-004.
Criteria/Condition: Independent reviews and approvals are not performed for all significant accounting activities. A procedure should be in place for independent reviews and approvals of significant accounting activities. For all activities, no one individual should have access that allows initiating, recording, authorizing, and reconciling a transaction.
Cause/Context: The following transactions are performed without independent review and approval:
• Journal entries are posted without review or approval documented.
• Formal review of payroll registers is not documented.
• Invoices are not regularly reviewed and approved by appropriate department directors. Two invoices out of forty tested for non-payroll expenditures for the Crime Victim Assistance Program were paid without department approvals, one relating to November 2023 and one relating to the period of July through September 2024.
• One invoice out of forty nonpayroll expenditures was entered into the general ledger with no independent review of the entry by the Director of Finance.
• Performance reports are submitted without proper documented review. We noted during testing of ten different required performance reports for the Crime Victim Assistance program that the performance reports tested did not contain documentation of review.
• The preparer of the financial status report is not reviewing that expenses presented for reimbursement have already been paid or ensuring that expenses are paid shortly after grant funds are received in order to properly monitor cash management.
Effect: Unauthorized, erroneous, or inappropriate transactions could occur and go unnoticed.
Recommendation: The Organization should establish review procedures such that all transactions and reports have proper documented approval. In addition, the Organization should establish procedures and incorporate controls to review that expenditures are paid prior to submitting requests for reimbursement of federal awards.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures:
1. Journal entries will be drafted by finance staff and reviewed by the CFO prior to being posted to the general ledger. CFO will post journal entry transactions in the accounting system after documentation is reviewed.
2. Payroll registers will be reviewed by the CFO each payroll. The end-of-month payroll entry (which encompasses all the payroll entries for the month) will be reviewed by the CFO prior to being uploaded to the MIP accounting software.
3. All invoices will be approved by the appropriate program director and account distribution will be reviewed by the CFO or Director of Grants/Compliance prior to entry into the accounts payable system.
4. Percentages used to allocate expenses across grants will be reviewed and updated annually at the beginning of the fiscal year. The allocation will be approved by the CEO.
5. Matching amounts for grants will be tracked and documented with supporting documentation saved in the appropriate folder within the Finance SharePoint folder.
#2024-003 – Material Weakness: Independent Review and Approval
This is a repeat of prior year finding #2023-004.
Criteria/Condition: Independent reviews and approvals are not performed for all significant accounting activities. A procedure should be in place for independent reviews and approvals of significant accounting activities. For all activities, no one individual should have access that allows initiating, recording, authorizing, and reconciling a transaction.
Cause/Context: The following transactions are performed without independent review and approval:
• Journal entries are posted without review or approval documented.
• Formal review of payroll registers is not documented.
• Invoices are not regularly reviewed and approved by appropriate department directors. Two invoices out of forty tested for non-payroll expenditures for the Crime Victim Assistance Program were paid without department approvals, one relating to November 2023 and one relating to the period of July through September 2024.
• One invoice out of forty nonpayroll expenditures was entered into the general ledger with no independent review of the entry by the Director of Finance.
• Performance reports are submitted without proper documented review. We noted during testing of ten different required performance reports for the Crime Victim Assistance program that the performance reports tested did not contain documentation of review.
• The preparer of the financial status report is not reviewing that expenses presented for reimbursement have already been paid or ensuring that expenses are paid shortly after grant funds are received in order to properly monitor cash management.
Effect: Unauthorized, erroneous, or inappropriate transactions could occur and go unnoticed.
Recommendation: The Organization should establish review procedures such that all transactions and reports have proper documented approval. In addition, the Organization should establish procedures and incorporate controls to review that expenditures are paid prior to submitting requests for reimbursement of federal awards.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures:
1. Journal entries will be drafted by finance staff and reviewed by the CFO prior to being posted to the general ledger. CFO will post journal entry transactions in the accounting system after documentation is reviewed.
2. Payroll registers will be reviewed by the CFO each payroll. The end-of-month payroll entry (which encompasses all the payroll entries for the month) will be reviewed by the CFO prior to being uploaded to the MIP accounting software.
3. All invoices will be approved by the appropriate program director and account distribution will be reviewed by the CFO or Director of Grants/Compliance prior to entry into the accounts payable system.
4. Percentages used to allocate expenses across grants will be reviewed and updated annually at the beginning of the fiscal year. The allocation will be approved by the CEO.
5. Matching amounts for grants will be tracked and documented with supporting documentation saved in the appropriate folder within the Finance SharePoint folder.
#2024-003 – Material Weakness: Independent Review and Approval
This is a repeat of prior year finding #2023-004.
Criteria/Condition: Independent reviews and approvals are not performed for all significant accounting activities. A procedure should be in place for independent reviews and approvals of significant accounting activities. For all activities, no one individual should have access that allows initiating, recording, authorizing, and reconciling a transaction.
Cause/Context: The following transactions are performed without independent review and approval:
• Journal entries are posted without review or approval documented.
• Formal review of payroll registers is not documented.
• Invoices are not regularly reviewed and approved by appropriate department directors. Two invoices out of forty tested for non-payroll expenditures for the Crime Victim Assistance Program were paid without department approvals, one relating to November 2023 and one relating to the period of July through September 2024.
• One invoice out of forty nonpayroll expenditures was entered into the general ledger with no independent review of the entry by the Director of Finance.
• Performance reports are submitted without proper documented review. We noted during testing of ten different required performance reports for the Crime Victim Assistance program that the performance reports tested did not contain documentation of review.
• The preparer of the financial status report is not reviewing that expenses presented for reimbursement have already been paid or ensuring that expenses are paid shortly after grant funds are received in order to properly monitor cash management.
Effect: Unauthorized, erroneous, or inappropriate transactions could occur and go unnoticed.
Recommendation: The Organization should establish review procedures such that all transactions and reports have proper documented approval. In addition, the Organization should establish procedures and incorporate controls to review that expenditures are paid prior to submitting requests for reimbursement of federal awards.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures:
1. Journal entries will be drafted by finance staff and reviewed by the CFO prior to being posted to the general ledger. CFO will post journal entry transactions in the accounting system after documentation is reviewed.
2. Payroll registers will be reviewed by the CFO each payroll. The end-of-month payroll entry (which encompasses all the payroll entries for the month) will be reviewed by the CFO prior to being uploaded to the MIP accounting software.
3. All invoices will be approved by the appropriate program director and account distribution will be reviewed by the CFO or Director of Grants/Compliance prior to entry into the accounts payable system.
4. Percentages used to allocate expenses across grants will be reviewed and updated annually at the beginning of the fiscal year. The allocation will be approved by the CEO.
5. Matching amounts for grants will be tracked and documented with supporting documentation saved in the appropriate folder within the Finance SharePoint folder.
#2024-003 – Material Weakness: Independent Review and Approval
This is a repeat of prior year finding #2023-004.
Criteria/Condition: Independent reviews and approvals are not performed for all significant accounting activities. A procedure should be in place for independent reviews and approvals of significant accounting activities. For all activities, no one individual should have access that allows initiating, recording, authorizing, and reconciling a transaction.
Cause/Context: The following transactions are performed without independent review and approval:
• Journal entries are posted without review or approval documented.
• Formal review of payroll registers is not documented.
• Invoices are not regularly reviewed and approved by appropriate department directors. Two invoices out of forty tested for non-payroll expenditures for the Crime Victim Assistance Program were paid without department approvals, one relating to November 2023 and one relating to the period of July through September 2024.
• One invoice out of forty nonpayroll expenditures was entered into the general ledger with no independent review of the entry by the Director of Finance.
• Performance reports are submitted without proper documented review. We noted during testing of ten different required performance reports for the Crime Victim Assistance program that the performance reports tested did not contain documentation of review.
• The preparer of the financial status report is not reviewing that expenses presented for reimbursement have already been paid or ensuring that expenses are paid shortly after grant funds are received in order to properly monitor cash management.
Effect: Unauthorized, erroneous, or inappropriate transactions could occur and go unnoticed.
Recommendation: The Organization should establish review procedures such that all transactions and reports have proper documented approval. In addition, the Organization should establish procedures and incorporate controls to review that expenditures are paid prior to submitting requests for reimbursement of federal awards.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures:
1. Journal entries will be drafted by finance staff and reviewed by the CFO prior to being posted to the general ledger. CFO will post journal entry transactions in the accounting system after documentation is reviewed.
2. Payroll registers will be reviewed by the CFO each payroll. The end-of-month payroll entry (which encompasses all the payroll entries for the month) will be reviewed by the CFO prior to being uploaded to the MIP accounting software.
3. All invoices will be approved by the appropriate program director and account distribution will be reviewed by the CFO or Director of Grants/Compliance prior to entry into the accounts payable system.
4. Percentages used to allocate expenses across grants will be reviewed and updated annually at the beginning of the fiscal year. The allocation will be approved by the CEO.
5. Matching amounts for grants will be tracked and documented with supporting documentation saved in the appropriate folder within the Finance SharePoint folder.
#2024-003 – Material Weakness: Independent Review and Approval
This is a repeat of prior year finding #2023-004.
Criteria/Condition: Independent reviews and approvals are not performed for all significant accounting activities. A procedure should be in place for independent reviews and approvals of significant accounting activities. For all activities, no one individual should have access that allows initiating, recording, authorizing, and reconciling a transaction.
Cause/Context: The following transactions are performed without independent review and approval:
• Journal entries are posted without review or approval documented.
• Formal review of payroll registers is not documented.
• Invoices are not regularly reviewed and approved by appropriate department directors. Two invoices out of forty tested for non-payroll expenditures for the Crime Victim Assistance Program were paid without department approvals, one relating to November 2023 and one relating to the period of July through September 2024.
• One invoice out of forty nonpayroll expenditures was entered into the general ledger with no independent review of the entry by the Director of Finance.
• Performance reports are submitted without proper documented review. We noted during testing of ten different required performance reports for the Crime Victim Assistance program that the performance reports tested did not contain documentation of review.
• The preparer of the financial status report is not reviewing that expenses presented for reimbursement have already been paid or ensuring that expenses are paid shortly after grant funds are received in order to properly monitor cash management.
Effect: Unauthorized, erroneous, or inappropriate transactions could occur and go unnoticed.
Recommendation: The Organization should establish review procedures such that all transactions and reports have proper documented approval. In addition, the Organization should establish procedures and incorporate controls to review that expenditures are paid prior to submitting requests for reimbursement of federal awards.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures:
1. Journal entries will be drafted by finance staff and reviewed by the CFO prior to being posted to the general ledger. CFO will post journal entry transactions in the accounting system after documentation is reviewed.
2. Payroll registers will be reviewed by the CFO each payroll. The end-of-month payroll entry (which encompasses all the payroll entries for the month) will be reviewed by the CFO prior to being uploaded to the MIP accounting software.
3. All invoices will be approved by the appropriate program director and account distribution will be reviewed by the CFO or Director of Grants/Compliance prior to entry into the accounts payable system.
4. Percentages used to allocate expenses across grants will be reviewed and updated annually at the beginning of the fiscal year. The allocation will be approved by the CEO.
5. Matching amounts for grants will be tracked and documented with supporting documentation saved in the appropriate folder within the Finance SharePoint folder.
#2024-004 – Major Federal Award Finding – Period of Performance
Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance
This is a repeat of prior year finding #2023-010.
Criteria/Condition: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance.
Questioned Costs: $8,324
Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $35,000 was selected from a population of approximately $577,000 of non-payroll expenditures. An amount of $503 from one invoice that was charged to the Crime Victim Assistance program was related to the year ending September 30, 2025 and was inappropriately charged to the grant during 2024. Questioned costs are estimated by projecting the error identified in the sample tested to the population of non-payroll expenditures of the Crime Victim Assistance program.
Cause/Context: Controls were put in place during the year ending September 30, 2024 to review invoices and assign them to the appropriate grant period; however, these controls were not operating as designed. Two expenditures out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant were for a contracted annual service that covered multiple performance periods but was billed in its entirety to the current fiscal year. One of these contracted annual services had the correct annual cost allocated to the grant during the year ended September 30, 2024 and did not have questioned costs included above. The other contracted annual service invoice was included in the questioned costs above. One other expenditure out of forty non-payroll related expenditures tested was for services provided in the prior performance period and was initially billed to the grant during 2024. Prior to September 30, 2024, this expenditure was removed from a subsequent grant bill after the auditor discovered the error during interim procedures. This expenditure was not included above in questioned costs as it was removed from grant expenditures during 2024.
Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year.
Recommendation: We recommend procedures are consistently performed to review for proper grant period when recording transactions and creating monthly reimbursement requests.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures.
1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice.
2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.
#2024-005 – Major Federal Award Finding – Allocation of Costs
Nature of Finding: Compliance Finding Allowable Costs and Material Weakness in Internal Controls over Compliance
Criteria/Condition: Federal regulations 2 CFR 200.405 provide that costs benefiting two or more projects in proportions that can be easily determined must be allocated to the projects based on the proportional benefit. If proportions cannot be easily determined, the costs may be allocated to the benefitted projects on a reasonable and documented basis.
Questioned Costs: Not able to be determined.
Identification of How Questioned Costs Were Computed: Of the non-payroll major program expenditures selected for testing, certain costs charged to the major program did not have proper support for the allocation percentages that were utilized, or they were missing documented approval for the allocation percentages. Some of the allocation percentages utilized were not consistent throughout the year. These matters are not isolated or contained to any particular type of expenditure. There was no meaningful methodology identified to quantify or extend the errors to the population.
Cause/Context: Controls were not in place to evaluate the allocation of costs to grants based on proportional benefit provided to each grant. For 11 of the 40 non-payroll expenditures selected for testing, allocation percentages were not properly supported or were missing documented approval.
Effect: Expenditures that involve an allocation of costs between grants are not properly supported. The lack of controls results in questioned costs as a disproportionate amount of expenditures may be charged to the federal program.
Recommendation: We recommend management establish procedures and controls to allocate costs between grants based upon actual costs attributed to the grant and the particular expenditure allowed by the grant. Any such allocations should be supported by activity-level substantiation and be reviewed. Documentation of the allocation methodology, review and approval should be maintained.
Views of Responsible Officials and Planned Corrective Actions
Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO.
#2024-004 – Major Federal Award Finding – Period of Performance
Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance
This is a repeat of prior year finding #2023-010.
Criteria/Condition: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance.
Questioned Costs: $8,324
Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $35,000 was selected from a population of approximately $577,000 of non-payroll expenditures. An amount of $503 from one invoice that was charged to the Crime Victim Assistance program was related to the year ending September 30, 2025 and was inappropriately charged to the grant during 2024. Questioned costs are estimated by projecting the error identified in the sample tested to the population of non-payroll expenditures of the Crime Victim Assistance program.
Cause/Context: Controls were put in place during the year ending September 30, 2024 to review invoices and assign them to the appropriate grant period; however, these controls were not operating as designed. Two expenditures out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant were for a contracted annual service that covered multiple performance periods but was billed in its entirety to the current fiscal year. One of these contracted annual services had the correct annual cost allocated to the grant during the year ended September 30, 2024 and did not have questioned costs included above. The other contracted annual service invoice was included in the questioned costs above. One other expenditure out of forty non-payroll related expenditures tested was for services provided in the prior performance period and was initially billed to the grant during 2024. Prior to September 30, 2024, this expenditure was removed from a subsequent grant bill after the auditor discovered the error during interim procedures. This expenditure was not included above in questioned costs as it was removed from grant expenditures during 2024.
Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year.
Recommendation: We recommend procedures are consistently performed to review for proper grant period when recording transactions and creating monthly reimbursement requests.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures.
1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice.
2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.
#2024-005 – Major Federal Award Finding – Allocation of Costs
Nature of Finding: Compliance Finding Allowable Costs and Material Weakness in Internal Controls over Compliance
Criteria/Condition: Federal regulations 2 CFR 200.405 provide that costs benefiting two or more projects in proportions that can be easily determined must be allocated to the projects based on the proportional benefit. If proportions cannot be easily determined, the costs may be allocated to the benefitted projects on a reasonable and documented basis.
Questioned Costs: Not able to be determined.
Identification of How Questioned Costs Were Computed: Of the non-payroll major program expenditures selected for testing, certain costs charged to the major program did not have proper support for the allocation percentages that were utilized, or they were missing documented approval for the allocation percentages. Some of the allocation percentages utilized were not consistent throughout the year. These matters are not isolated or contained to any particular type of expenditure. There was no meaningful methodology identified to quantify or extend the errors to the population.
Cause/Context: Controls were not in place to evaluate the allocation of costs to grants based on proportional benefit provided to each grant. For 11 of the 40 non-payroll expenditures selected for testing, allocation percentages were not properly supported or were missing documented approval.
Effect: Expenditures that involve an allocation of costs between grants are not properly supported. The lack of controls results in questioned costs as a disproportionate amount of expenditures may be charged to the federal program.
Recommendation: We recommend management establish procedures and controls to allocate costs between grants based upon actual costs attributed to the grant and the particular expenditure allowed by the grant. Any such allocations should be supported by activity-level substantiation and be reviewed. Documentation of the allocation methodology, review and approval should be maintained.
Views of Responsible Officials and Planned Corrective Actions
Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO.
#2024-004 – Major Federal Award Finding – Period of Performance
Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance
This is a repeat of prior year finding #2023-010.
Criteria/Condition: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance.
Questioned Costs: $8,324
Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $35,000 was selected from a population of approximately $577,000 of non-payroll expenditures. An amount of $503 from one invoice that was charged to the Crime Victim Assistance program was related to the year ending September 30, 2025 and was inappropriately charged to the grant during 2024. Questioned costs are estimated by projecting the error identified in the sample tested to the population of non-payroll expenditures of the Crime Victim Assistance program.
Cause/Context: Controls were put in place during the year ending September 30, 2024 to review invoices and assign them to the appropriate grant period; however, these controls were not operating as designed. Two expenditures out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant were for a contracted annual service that covered multiple performance periods but was billed in its entirety to the current fiscal year. One of these contracted annual services had the correct annual cost allocated to the grant during the year ended September 30, 2024 and did not have questioned costs included above. The other contracted annual service invoice was included in the questioned costs above. One other expenditure out of forty non-payroll related expenditures tested was for services provided in the prior performance period and was initially billed to the grant during 2024. Prior to September 30, 2024, this expenditure was removed from a subsequent grant bill after the auditor discovered the error during interim procedures. This expenditure was not included above in questioned costs as it was removed from grant expenditures during 2024.
Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year.
Recommendation: We recommend procedures are consistently performed to review for proper grant period when recording transactions and creating monthly reimbursement requests.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures.
1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice.
2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.
#2024-005 – Major Federal Award Finding – Allocation of Costs
Nature of Finding: Compliance Finding Allowable Costs and Material Weakness in Internal Controls over Compliance
Criteria/Condition: Federal regulations 2 CFR 200.405 provide that costs benefiting two or more projects in proportions that can be easily determined must be allocated to the projects based on the proportional benefit. If proportions cannot be easily determined, the costs may be allocated to the benefitted projects on a reasonable and documented basis.
Questioned Costs: Not able to be determined.
Identification of How Questioned Costs Were Computed: Of the non-payroll major program expenditures selected for testing, certain costs charged to the major program did not have proper support for the allocation percentages that were utilized, or they were missing documented approval for the allocation percentages. Some of the allocation percentages utilized were not consistent throughout the year. These matters are not isolated or contained to any particular type of expenditure. There was no meaningful methodology identified to quantify or extend the errors to the population.
Cause/Context: Controls were not in place to evaluate the allocation of costs to grants based on proportional benefit provided to each grant. For 11 of the 40 non-payroll expenditures selected for testing, allocation percentages were not properly supported or were missing documented approval.
Effect: Expenditures that involve an allocation of costs between grants are not properly supported. The lack of controls results in questioned costs as a disproportionate amount of expenditures may be charged to the federal program.
Recommendation: We recommend management establish procedures and controls to allocate costs between grants based upon actual costs attributed to the grant and the particular expenditure allowed by the grant. Any such allocations should be supported by activity-level substantiation and be reviewed. Documentation of the allocation methodology, review and approval should be maintained.
Views of Responsible Officials and Planned Corrective Actions
Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO.
#2024-004 – Major Federal Award Finding – Period of Performance
Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance
This is a repeat of prior year finding #2023-010.
Criteria/Condition: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance.
Questioned Costs: $8,324
Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $35,000 was selected from a population of approximately $577,000 of non-payroll expenditures. An amount of $503 from one invoice that was charged to the Crime Victim Assistance program was related to the year ending September 30, 2025 and was inappropriately charged to the grant during 2024. Questioned costs are estimated by projecting the error identified in the sample tested to the population of non-payroll expenditures of the Crime Victim Assistance program.
Cause/Context: Controls were put in place during the year ending September 30, 2024 to review invoices and assign them to the appropriate grant period; however, these controls were not operating as designed. Two expenditures out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant were for a contracted annual service that covered multiple performance periods but was billed in its entirety to the current fiscal year. One of these contracted annual services had the correct annual cost allocated to the grant during the year ended September 30, 2024 and did not have questioned costs included above. The other contracted annual service invoice was included in the questioned costs above. One other expenditure out of forty non-payroll related expenditures tested was for services provided in the prior performance period and was initially billed to the grant during 2024. Prior to September 30, 2024, this expenditure was removed from a subsequent grant bill after the auditor discovered the error during interim procedures. This expenditure was not included above in questioned costs as it was removed from grant expenditures during 2024.
Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year.
Recommendation: We recommend procedures are consistently performed to review for proper grant period when recording transactions and creating monthly reimbursement requests.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures.
1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice.
2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.
#2024-005 – Major Federal Award Finding – Allocation of Costs
Nature of Finding: Compliance Finding Allowable Costs and Material Weakness in Internal Controls over Compliance
Criteria/Condition: Federal regulations 2 CFR 200.405 provide that costs benefiting two or more projects in proportions that can be easily determined must be allocated to the projects based on the proportional benefit. If proportions cannot be easily determined, the costs may be allocated to the benefitted projects on a reasonable and documented basis.
Questioned Costs: Not able to be determined.
Identification of How Questioned Costs Were Computed: Of the non-payroll major program expenditures selected for testing, certain costs charged to the major program did not have proper support for the allocation percentages that were utilized, or they were missing documented approval for the allocation percentages. Some of the allocation percentages utilized were not consistent throughout the year. These matters are not isolated or contained to any particular type of expenditure. There was no meaningful methodology identified to quantify or extend the errors to the population.
Cause/Context: Controls were not in place to evaluate the allocation of costs to grants based on proportional benefit provided to each grant. For 11 of the 40 non-payroll expenditures selected for testing, allocation percentages were not properly supported or were missing documented approval.
Effect: Expenditures that involve an allocation of costs between grants are not properly supported. The lack of controls results in questioned costs as a disproportionate amount of expenditures may be charged to the federal program.
Recommendation: We recommend management establish procedures and controls to allocate costs between grants based upon actual costs attributed to the grant and the particular expenditure allowed by the grant. Any such allocations should be supported by activity-level substantiation and be reviewed. Documentation of the allocation methodology, review and approval should be maintained.
Views of Responsible Officials and Planned Corrective Actions
Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO.
#2024-004 – Major Federal Award Finding – Period of Performance
Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance
This is a repeat of prior year finding #2023-010.
Criteria/Condition: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance.
Questioned Costs: $8,324
Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $35,000 was selected from a population of approximately $577,000 of non-payroll expenditures. An amount of $503 from one invoice that was charged to the Crime Victim Assistance program was related to the year ending September 30, 2025 and was inappropriately charged to the grant during 2024. Questioned costs are estimated by projecting the error identified in the sample tested to the population of non-payroll expenditures of the Crime Victim Assistance program.
Cause/Context: Controls were put in place during the year ending September 30, 2024 to review invoices and assign them to the appropriate grant period; however, these controls were not operating as designed. Two expenditures out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant were for a contracted annual service that covered multiple performance periods but was billed in its entirety to the current fiscal year. One of these contracted annual services had the correct annual cost allocated to the grant during the year ended September 30, 2024 and did not have questioned costs included above. The other contracted annual service invoice was included in the questioned costs above. One other expenditure out of forty non-payroll related expenditures tested was for services provided in the prior performance period and was initially billed to the grant during 2024. Prior to September 30, 2024, this expenditure was removed from a subsequent grant bill after the auditor discovered the error during interim procedures. This expenditure was not included above in questioned costs as it was removed from grant expenditures during 2024.
Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year.
Recommendation: We recommend procedures are consistently performed to review for proper grant period when recording transactions and creating monthly reimbursement requests.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures.
1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice.
2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.
#2024-005 – Major Federal Award Finding – Allocation of Costs
Nature of Finding: Compliance Finding Allowable Costs and Material Weakness in Internal Controls over Compliance
Criteria/Condition: Federal regulations 2 CFR 200.405 provide that costs benefiting two or more projects in proportions that can be easily determined must be allocated to the projects based on the proportional benefit. If proportions cannot be easily determined, the costs may be allocated to the benefitted projects on a reasonable and documented basis.
Questioned Costs: Not able to be determined.
Identification of How Questioned Costs Were Computed: Of the non-payroll major program expenditures selected for testing, certain costs charged to the major program did not have proper support for the allocation percentages that were utilized, or they were missing documented approval for the allocation percentages. Some of the allocation percentages utilized were not consistent throughout the year. These matters are not isolated or contained to any particular type of expenditure. There was no meaningful methodology identified to quantify or extend the errors to the population.
Cause/Context: Controls were not in place to evaluate the allocation of costs to grants based on proportional benefit provided to each grant. For 11 of the 40 non-payroll expenditures selected for testing, allocation percentages were not properly supported or were missing documented approval.
Effect: Expenditures that involve an allocation of costs between grants are not properly supported. The lack of controls results in questioned costs as a disproportionate amount of expenditures may be charged to the federal program.
Recommendation: We recommend management establish procedures and controls to allocate costs between grants based upon actual costs attributed to the grant and the particular expenditure allowed by the grant. Any such allocations should be supported by activity-level substantiation and be reviewed. Documentation of the allocation methodology, review and approval should be maintained.
Views of Responsible Officials and Planned Corrective Actions
Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO.
#2024-003 – Material Weakness: Independent Review and Approval
This is a repeat of prior year finding #2023-004.
Criteria/Condition: Independent reviews and approvals are not performed for all significant accounting activities. A procedure should be in place for independent reviews and approvals of significant accounting activities. For all activities, no one individual should have access that allows initiating, recording, authorizing, and reconciling a transaction.
Cause/Context: The following transactions are performed without independent review and approval:
• Journal entries are posted without review or approval documented.
• Formal review of payroll registers is not documented.
• Invoices are not regularly reviewed and approved by appropriate department directors. Two invoices out of forty tested for non-payroll expenditures for the Crime Victim Assistance Program were paid without department approvals, one relating to November 2023 and one relating to the period of July through September 2024.
• One invoice out of forty nonpayroll expenditures was entered into the general ledger with no independent review of the entry by the Director of Finance.
• Performance reports are submitted without proper documented review. We noted during testing of ten different required performance reports for the Crime Victim Assistance program that the performance reports tested did not contain documentation of review.
• The preparer of the financial status report is not reviewing that expenses presented for reimbursement have already been paid or ensuring that expenses are paid shortly after grant funds are received in order to properly monitor cash management.
Effect: Unauthorized, erroneous, or inappropriate transactions could occur and go unnoticed.
Recommendation: The Organization should establish review procedures such that all transactions and reports have proper documented approval. In addition, the Organization should establish procedures and incorporate controls to review that expenditures are paid prior to submitting requests for reimbursement of federal awards.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures:
1. Journal entries will be drafted by finance staff and reviewed by the CFO prior to being posted to the general ledger. CFO will post journal entry transactions in the accounting system after documentation is reviewed.
2. Payroll registers will be reviewed by the CFO each payroll. The end-of-month payroll entry (which encompasses all the payroll entries for the month) will be reviewed by the CFO prior to being uploaded to the MIP accounting software.
3. All invoices will be approved by the appropriate program director and account distribution will be reviewed by the CFO or Director of Grants/Compliance prior to entry into the accounts payable system.
4. Percentages used to allocate expenses across grants will be reviewed and updated annually at the beginning of the fiscal year. The allocation will be approved by the CEO.
5. Matching amounts for grants will be tracked and documented with supporting documentation saved in the appropriate folder within the Finance SharePoint folder.
#2024-003 – Material Weakness: Independent Review and Approval
This is a repeat of prior year finding #2023-004.
Criteria/Condition: Independent reviews and approvals are not performed for all significant accounting activities. A procedure should be in place for independent reviews and approvals of significant accounting activities. For all activities, no one individual should have access that allows initiating, recording, authorizing, and reconciling a transaction.
Cause/Context: The following transactions are performed without independent review and approval:
• Journal entries are posted without review or approval documented.
• Formal review of payroll registers is not documented.
• Invoices are not regularly reviewed and approved by appropriate department directors. Two invoices out of forty tested for non-payroll expenditures for the Crime Victim Assistance Program were paid without department approvals, one relating to November 2023 and one relating to the period of July through September 2024.
• One invoice out of forty nonpayroll expenditures was entered into the general ledger with no independent review of the entry by the Director of Finance.
• Performance reports are submitted without proper documented review. We noted during testing of ten different required performance reports for the Crime Victim Assistance program that the performance reports tested did not contain documentation of review.
• The preparer of the financial status report is not reviewing that expenses presented for reimbursement have already been paid or ensuring that expenses are paid shortly after grant funds are received in order to properly monitor cash management.
Effect: Unauthorized, erroneous, or inappropriate transactions could occur and go unnoticed.
Recommendation: The Organization should establish review procedures such that all transactions and reports have proper documented approval. In addition, the Organization should establish procedures and incorporate controls to review that expenditures are paid prior to submitting requests for reimbursement of federal awards.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures:
1. Journal entries will be drafted by finance staff and reviewed by the CFO prior to being posted to the general ledger. CFO will post journal entry transactions in the accounting system after documentation is reviewed.
2. Payroll registers will be reviewed by the CFO each payroll. The end-of-month payroll entry (which encompasses all the payroll entries for the month) will be reviewed by the CFO prior to being uploaded to the MIP accounting software.
3. All invoices will be approved by the appropriate program director and account distribution will be reviewed by the CFO or Director of Grants/Compliance prior to entry into the accounts payable system.
4. Percentages used to allocate expenses across grants will be reviewed and updated annually at the beginning of the fiscal year. The allocation will be approved by the CEO.
5. Matching amounts for grants will be tracked and documented with supporting documentation saved in the appropriate folder within the Finance SharePoint folder.
#2024-003 – Material Weakness: Independent Review and Approval
This is a repeat of prior year finding #2023-004.
Criteria/Condition: Independent reviews and approvals are not performed for all significant accounting activities. A procedure should be in place for independent reviews and approvals of significant accounting activities. For all activities, no one individual should have access that allows initiating, recording, authorizing, and reconciling a transaction.
Cause/Context: The following transactions are performed without independent review and approval:
• Journal entries are posted without review or approval documented.
• Formal review of payroll registers is not documented.
• Invoices are not regularly reviewed and approved by appropriate department directors. Two invoices out of forty tested for non-payroll expenditures for the Crime Victim Assistance Program were paid without department approvals, one relating to November 2023 and one relating to the period of July through September 2024.
• One invoice out of forty nonpayroll expenditures was entered into the general ledger with no independent review of the entry by the Director of Finance.
• Performance reports are submitted without proper documented review. We noted during testing of ten different required performance reports for the Crime Victim Assistance program that the performance reports tested did not contain documentation of review.
• The preparer of the financial status report is not reviewing that expenses presented for reimbursement have already been paid or ensuring that expenses are paid shortly after grant funds are received in order to properly monitor cash management.
Effect: Unauthorized, erroneous, or inappropriate transactions could occur and go unnoticed.
Recommendation: The Organization should establish review procedures such that all transactions and reports have proper documented approval. In addition, the Organization should establish procedures and incorporate controls to review that expenditures are paid prior to submitting requests for reimbursement of federal awards.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures:
1. Journal entries will be drafted by finance staff and reviewed by the CFO prior to being posted to the general ledger. CFO will post journal entry transactions in the accounting system after documentation is reviewed.
2. Payroll registers will be reviewed by the CFO each payroll. The end-of-month payroll entry (which encompasses all the payroll entries for the month) will be reviewed by the CFO prior to being uploaded to the MIP accounting software.
3. All invoices will be approved by the appropriate program director and account distribution will be reviewed by the CFO or Director of Grants/Compliance prior to entry into the accounts payable system.
4. Percentages used to allocate expenses across grants will be reviewed and updated annually at the beginning of the fiscal year. The allocation will be approved by the CEO.
5. Matching amounts for grants will be tracked and documented with supporting documentation saved in the appropriate folder within the Finance SharePoint folder.
#2024-003 – Material Weakness: Independent Review and Approval
This is a repeat of prior year finding #2023-004.
Criteria/Condition: Independent reviews and approvals are not performed for all significant accounting activities. A procedure should be in place for independent reviews and approvals of significant accounting activities. For all activities, no one individual should have access that allows initiating, recording, authorizing, and reconciling a transaction.
Cause/Context: The following transactions are performed without independent review and approval:
• Journal entries are posted without review or approval documented.
• Formal review of payroll registers is not documented.
• Invoices are not regularly reviewed and approved by appropriate department directors. Two invoices out of forty tested for non-payroll expenditures for the Crime Victim Assistance Program were paid without department approvals, one relating to November 2023 and one relating to the period of July through September 2024.
• One invoice out of forty nonpayroll expenditures was entered into the general ledger with no independent review of the entry by the Director of Finance.
• Performance reports are submitted without proper documented review. We noted during testing of ten different required performance reports for the Crime Victim Assistance program that the performance reports tested did not contain documentation of review.
• The preparer of the financial status report is not reviewing that expenses presented for reimbursement have already been paid or ensuring that expenses are paid shortly after grant funds are received in order to properly monitor cash management.
Effect: Unauthorized, erroneous, or inappropriate transactions could occur and go unnoticed.
Recommendation: The Organization should establish review procedures such that all transactions and reports have proper documented approval. In addition, the Organization should establish procedures and incorporate controls to review that expenditures are paid prior to submitting requests for reimbursement of federal awards.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures:
1. Journal entries will be drafted by finance staff and reviewed by the CFO prior to being posted to the general ledger. CFO will post journal entry transactions in the accounting system after documentation is reviewed.
2. Payroll registers will be reviewed by the CFO each payroll. The end-of-month payroll entry (which encompasses all the payroll entries for the month) will be reviewed by the CFO prior to being uploaded to the MIP accounting software.
3. All invoices will be approved by the appropriate program director and account distribution will be reviewed by the CFO or Director of Grants/Compliance prior to entry into the accounts payable system.
4. Percentages used to allocate expenses across grants will be reviewed and updated annually at the beginning of the fiscal year. The allocation will be approved by the CEO.
5. Matching amounts for grants will be tracked and documented with supporting documentation saved in the appropriate folder within the Finance SharePoint folder.
#2024-003 – Material Weakness: Independent Review and Approval
This is a repeat of prior year finding #2023-004.
Criteria/Condition: Independent reviews and approvals are not performed for all significant accounting activities. A procedure should be in place for independent reviews and approvals of significant accounting activities. For all activities, no one individual should have access that allows initiating, recording, authorizing, and reconciling a transaction.
Cause/Context: The following transactions are performed without independent review and approval:
• Journal entries are posted without review or approval documented.
• Formal review of payroll registers is not documented.
• Invoices are not regularly reviewed and approved by appropriate department directors. Two invoices out of forty tested for non-payroll expenditures for the Crime Victim Assistance Program were paid without department approvals, one relating to November 2023 and one relating to the period of July through September 2024.
• One invoice out of forty nonpayroll expenditures was entered into the general ledger with no independent review of the entry by the Director of Finance.
• Performance reports are submitted without proper documented review. We noted during testing of ten different required performance reports for the Crime Victim Assistance program that the performance reports tested did not contain documentation of review.
• The preparer of the financial status report is not reviewing that expenses presented for reimbursement have already been paid or ensuring that expenses are paid shortly after grant funds are received in order to properly monitor cash management.
Effect: Unauthorized, erroneous, or inappropriate transactions could occur and go unnoticed.
Recommendation: The Organization should establish review procedures such that all transactions and reports have proper documented approval. In addition, the Organization should establish procedures and incorporate controls to review that expenditures are paid prior to submitting requests for reimbursement of federal awards.
Views of Responsible Officials and Planned Corrective Actions:
The YWCA will implement the following changes in its accounting procedures:
1. Journal entries will be drafted by finance staff and reviewed by the CFO prior to being posted to the general ledger. CFO will post journal entry transactions in the accounting system after documentation is reviewed.
2. Payroll registers will be reviewed by the CFO each payroll. The end-of-month payroll entry (which encompasses all the payroll entries for the month) will be reviewed by the CFO prior to being uploaded to the MIP accounting software.
3. All invoices will be approved by the appropriate program director and account distribution will be reviewed by the CFO or Director of Grants/Compliance prior to entry into the accounts payable system.
4. Percentages used to allocate expenses across grants will be reviewed and updated annually at the beginning of the fiscal year. The allocation will be approved by the CEO.
5. Matching amounts for grants will be tracked and documented with supporting documentation saved in the appropriate folder within the Finance SharePoint folder.