FAC Explorer

Audit 359012

FY End
2022-06-30
Total Expended
$14.14M
Findings
8
Programs
1
Organization: United Way of Marion County, Inc. (FL)
Year: 2022 Accepted: 2025-06-17
Auditor: Powell and Jones CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
565073 2022-001 Significant Deficiency - B
565074 2022-002 Material Weakness - B
565075 2022-001 Significant Deficiency - B
565076 2022-002 Material Weakness - B
1141515 2022-001 Significant Deficiency - B
1141516 2022-002 Material Weakness - B
1141517 2022-001 Significant Deficiency - B
1141518 2022-002 Material Weakness - B

Programs

ALN Program Spent Major Findings
21.023 Covid-19 Emergency Rental Assitance Program $6.35M Yes 2

Contacts

Name Title Type
CDLNDZH3XKW5 Rober Haight Auditee
3527329696 Caleb Perla Auditor
No contacts on file

Notes to SEFA

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accounting policies and presentation of the Schedule of Expenditures of Federal Awards and State Financial Assistance of the United Way of Marion County, Inc. (United Way) have been designed to conform to generally accepted accounting principles as applicable to non-profit organizations, including the reporting and compliance requirements of the Audits of States, Local Governments, and Non-Profit Organizations and Office of Management and Budget Uniform Guidance. De Minimis Rate Used: N Rate Explanation: United Way of Marion County, Inc. did not elect to use the 10 percent de minimis indirect cost rate. The accounting policies and presentation of the Schedule of Expenditures of Federal Awards and State Financial Assistance of the United Way of Marion County, Inc. (United Way) have been designed to conform to generally accepted accounting principles as applicable to non-profit organizations, including the reporting and compliance requirements of the Audits of States, Local Governments, and Non-Profit Organizations and Office of Management and Budget Uniform Guidance.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity Accounting Policies: The accounting policies and presentation of the Schedule of Expenditures of Federal Awards and State Financial Assistance of the United Way of Marion County, Inc. (United Way) have been designed to conform to generally accepted accounting principles as applicable to non-profit organizations, including the reporting and compliance requirements of the Audits of States, Local Governments, and Non-Profit Organizations and Office of Management and Budget Uniform Guidance. De Minimis Rate Used: N Rate Explanation: United Way of Marion County, Inc. did not elect to use the 10 percent de minimis indirect cost rate. This reporting entity consists of the United Way of Marion County, Inc. United Way includes a Schedule of Expenditures of Federal Awards and State Financial Assistance in the Compliance Section for the purpose of additional analysis.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES B. Basis of Accounting Accounting Policies: The accounting policies and presentation of the Schedule of Expenditures of Federal Awards and State Financial Assistance of the United Way of Marion County, Inc. (United Way) have been designed to conform to generally accepted accounting principles as applicable to non-profit organizations, including the reporting and compliance requirements of the Audits of States, Local Governments, and Non-Profit Organizations and Office of Management and Budget Uniform Guidance. De Minimis Rate Used: N Rate Explanation: United Way of Marion County, Inc. did not elect to use the 10 percent de minimis indirect cost rate. Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus. The accrual basis of accounting is followed in the Schedule of Expenditures of Federal Awards and State Financial Assistance. Under the accrual basis, revenues are recognized when they are earned. Expenses generally are recorded when a liability is incurred.
Title: INDIRECT COST RATE Accounting Policies: The accounting policies and presentation of the Schedule of Expenditures of Federal Awards and State Financial Assistance of the United Way of Marion County, Inc. (United Way) have been designed to conform to generally accepted accounting principles as applicable to non-profit organizations, including the reporting and compliance requirements of the Audits of States, Local Governments, and Non-Profit Organizations and Office of Management and Budget Uniform Guidance. De Minimis Rate Used: N Rate Explanation: United Way of Marion County, Inc. did not elect to use the 10 percent de minimis indirect cost rate. United Way of Marion County, Inc. did not elect to use the 10 percent de minimis indirect cost rate.
Title: SUBRECIPIENTS Accounting Policies: The accounting policies and presentation of the Schedule of Expenditures of Federal Awards and State Financial Assistance of the United Way of Marion County, Inc. (United Way) have been designed to conform to generally accepted accounting principles as applicable to non-profit organizations, including the reporting and compliance requirements of the Audits of States, Local Governments, and Non-Profit Organizations and Office of Management and Budget Uniform Guidance. De Minimis Rate Used: N Rate Explanation: United Way of Marion County, Inc. did not elect to use the 10 percent de minimis indirect cost rate. United Way of Marion County, Inc, did not have any subrecipients in the year ending June 30, 2022.

Finding Details

Finding 2022-001
2022-01 Duplicate Payments Federal Agency: U.S. Department of the Treasury Federal Program Name: Emergency Rental Assistance (ERA) 1 & 2 Assistance Listing Number: 21.023 Federal Award Identification Number: ERA0113 & ERA0104 (pass through Marion County) Award Period: 06/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Internal Control Over Financial Reporting Criteria: The U.S. Department of the Treasury’s Emergency Rental Assistance (ERA) program requires compliance with limits on the maximum amount paid to program participants and limits on the period of reimbursements. Condition: During the audit we found that the implementation of internal controls meant to prevent duplicate payments was inadequate. Effect: This resulted in duplication of benefits to 30 identified participants. This failure in internal control could have resulted in exceeding allowable limits for amounts paid to participants, though in sampled participants we determined that all duplicated amounts were within program maximums. Cause: The identified issues stem from deficiencies in internal controls over payment verification. For ERA 1 United Way processed all payments to participants and failed to verify whether payments had already been made before processing additional payments. This was likely due to a failure to upload proof of payment in a timely manner and a lack of any digital system to monitor or detect duplicate payments. For ERA 2 United Way paid for applications that were filed in the ERA 2 database which Capital Access was responsible for paying causing duplicate payments. Recommendation: For grant related expenditures not processed through the standard accounts payable process we recommend that United Way keep a separate listing of payments made and search that list before authorizing new payments to eliminate duplication. Additionally, United Way should verify applications are filed in the ERA 1 database with Capital Access before issuing payments. Context: We conducted a random sample of 60 participants and did not detect any duplicates. However, we were made aware of duplicates as identified in the reconciliations provided by United Way, which were completed in collaboration with the County. We then reviewed these identified duplicates to verify that they were indeed duplicates and sampled them to ensure payments were not in excess of allowable limits.
Finding 2022-002
2022-02 Reconciliation of Grant Financial Data and Reporting Federal Agency: U.S. Department of the Treasury Federal Program Name: Emergency Rental Assistance (ERA) 1 & 2 Assistance Listing Number: 21.023 Federal Award Identification Number: ERA0104 and ERA0113 pass through Marion County Award Period: 06/30/2022 Type of Finding: Material Weakness in Internal Control over Compliance and Internal Control Over Financial Reporting Criteria: Performance Reporting requirements outlined in the ERA program guidance stipulate that recipients must report accurate data. Reported data should be reconciled with internal reporting. External tracking systems of grant-related expenditures should be regularly reconciled to expenditures in the financial accounting system. Condition: During our audit we found that financial accounting system data did not agree with the third-party grant tracking system from Capital Access called “CAPGEMS” which was used to document participant eligibility and payments. Effect: These inaccuracies caused reported direct costs to be understated and retained contract administration fees to be over expended by approximately $87,371 which is payable back to Marion County and additional amounts receivable from Capital Access of approximately $59,197. We will note that though admin fees were over expended in the contract with the County, they were not in excess of the federally allowed rates. Additionally, these inaccuracies caused incorrect reporting in amounts submitted to the County and Department of the Treasury. Cause: Financial accounting data was not being regularly reconciled to the third-party grant tracking system CAPGEMS. Recommendation: We recommend that United Way: 1. Regularly reconcile grant data with financial accounting data. 2. Update data submitted to the County and Department of the Treasury with current financial data. 3. Request that the County amend its grant contract with United Way to allow for an administration fee up to the maximum allowed rates and request additional reimbursement from the County. Context: We reconciled the CAPGEMS records to the financial accounting data, this process was complicated due to different naming conventions and payment amount split outs used in the financial accounting software versus the CAPGEMS database. We believe through this process we have arrived at an accurate representation of the actual activity for the program.
Finding 2022-001
2022-01 Duplicate Payments Federal Agency: U.S. Department of the Treasury Federal Program Name: Emergency Rental Assistance (ERA) 1 & 2 Assistance Listing Number: 21.023 Federal Award Identification Number: ERA0113 & ERA0104 (pass through Marion County) Award Period: 06/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Internal Control Over Financial Reporting Criteria: The U.S. Department of the Treasury’s Emergency Rental Assistance (ERA) program requires compliance with limits on the maximum amount paid to program participants and limits on the period of reimbursements. Condition: During the audit we found that the implementation of internal controls meant to prevent duplicate payments was inadequate. Effect: This resulted in duplication of benefits to 30 identified participants. This failure in internal control could have resulted in exceeding allowable limits for amounts paid to participants, though in sampled participants we determined that all duplicated amounts were within program maximums. Cause: The identified issues stem from deficiencies in internal controls over payment verification. For ERA 1 United Way processed all payments to participants and failed to verify whether payments had already been made before processing additional payments. This was likely due to a failure to upload proof of payment in a timely manner and a lack of any digital system to monitor or detect duplicate payments. For ERA 2 United Way paid for applications that were filed in the ERA 2 database which Capital Access was responsible for paying causing duplicate payments. Recommendation: For grant related expenditures not processed through the standard accounts payable process we recommend that United Way keep a separate listing of payments made and search that list before authorizing new payments to eliminate duplication. Additionally, United Way should verify applications are filed in the ERA 1 database with Capital Access before issuing payments. Context: We conducted a random sample of 60 participants and did not detect any duplicates. However, we were made aware of duplicates as identified in the reconciliations provided by United Way, which were completed in collaboration with the County. We then reviewed these identified duplicates to verify that they were indeed duplicates and sampled them to ensure payments were not in excess of allowable limits.
Finding 2022-002
2022-02 Reconciliation of Grant Financial Data and Reporting Federal Agency: U.S. Department of the Treasury Federal Program Name: Emergency Rental Assistance (ERA) 1 & 2 Assistance Listing Number: 21.023 Federal Award Identification Number: ERA0104 and ERA0113 pass through Marion County Award Period: 06/30/2022 Type of Finding: Material Weakness in Internal Control over Compliance and Internal Control Over Financial Reporting Criteria: Performance Reporting requirements outlined in the ERA program guidance stipulate that recipients must report accurate data. Reported data should be reconciled with internal reporting. External tracking systems of grant-related expenditures should be regularly reconciled to expenditures in the financial accounting system. Condition: During our audit we found that financial accounting system data did not agree with the third-party grant tracking system from Capital Access called “CAPGEMS” which was used to document participant eligibility and payments. Effect: These inaccuracies caused reported direct costs to be understated and retained contract administration fees to be over expended by approximately $87,371 which is payable back to Marion County and additional amounts receivable from Capital Access of approximately $59,197. We will note that though admin fees were over expended in the contract with the County, they were not in excess of the federally allowed rates. Additionally, these inaccuracies caused incorrect reporting in amounts submitted to the County and Department of the Treasury. Cause: Financial accounting data was not being regularly reconciled to the third-party grant tracking system CAPGEMS. Recommendation: We recommend that United Way: 1. Regularly reconcile grant data with financial accounting data. 2. Update data submitted to the County and Department of the Treasury with current financial data. 3. Request that the County amend its grant contract with United Way to allow for an administration fee up to the maximum allowed rates and request additional reimbursement from the County. Context: We reconciled the CAPGEMS records to the financial accounting data, this process was complicated due to different naming conventions and payment amount split outs used in the financial accounting software versus the CAPGEMS database. We believe through this process we have arrived at an accurate representation of the actual activity for the program.
Finding 2022-001
2022-01 Duplicate Payments Federal Agency: U.S. Department of the Treasury Federal Program Name: Emergency Rental Assistance (ERA) 1 & 2 Assistance Listing Number: 21.023 Federal Award Identification Number: ERA0113 & ERA0104 (pass through Marion County) Award Period: 06/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Internal Control Over Financial Reporting Criteria: The U.S. Department of the Treasury’s Emergency Rental Assistance (ERA) program requires compliance with limits on the maximum amount paid to program participants and limits on the period of reimbursements. Condition: During the audit we found that the implementation of internal controls meant to prevent duplicate payments was inadequate. Effect: This resulted in duplication of benefits to 30 identified participants. This failure in internal control could have resulted in exceeding allowable limits for amounts paid to participants, though in sampled participants we determined that all duplicated amounts were within program maximums. Cause: The identified issues stem from deficiencies in internal controls over payment verification. For ERA 1 United Way processed all payments to participants and failed to verify whether payments had already been made before processing additional payments. This was likely due to a failure to upload proof of payment in a timely manner and a lack of any digital system to monitor or detect duplicate payments. For ERA 2 United Way paid for applications that were filed in the ERA 2 database which Capital Access was responsible for paying causing duplicate payments. Recommendation: For grant related expenditures not processed through the standard accounts payable process we recommend that United Way keep a separate listing of payments made and search that list before authorizing new payments to eliminate duplication. Additionally, United Way should verify applications are filed in the ERA 1 database with Capital Access before issuing payments. Context: We conducted a random sample of 60 participants and did not detect any duplicates. However, we were made aware of duplicates as identified in the reconciliations provided by United Way, which were completed in collaboration with the County. We then reviewed these identified duplicates to verify that they were indeed duplicates and sampled them to ensure payments were not in excess of allowable limits.
Finding 2022-002
2022-02 Reconciliation of Grant Financial Data and Reporting Federal Agency: U.S. Department of the Treasury Federal Program Name: Emergency Rental Assistance (ERA) 1 & 2 Assistance Listing Number: 21.023 Federal Award Identification Number: ERA0104 and ERA0113 pass through Marion County Award Period: 06/30/2022 Type of Finding: Material Weakness in Internal Control over Compliance and Internal Control Over Financial Reporting Criteria: Performance Reporting requirements outlined in the ERA program guidance stipulate that recipients must report accurate data. Reported data should be reconciled with internal reporting. External tracking systems of grant-related expenditures should be regularly reconciled to expenditures in the financial accounting system. Condition: During our audit we found that financial accounting system data did not agree with the third-party grant tracking system from Capital Access called “CAPGEMS” which was used to document participant eligibility and payments. Effect: These inaccuracies caused reported direct costs to be understated and retained contract administration fees to be over expended by approximately $87,371 which is payable back to Marion County and additional amounts receivable from Capital Access of approximately $59,197. We will note that though admin fees were over expended in the contract with the County, they were not in excess of the federally allowed rates. Additionally, these inaccuracies caused incorrect reporting in amounts submitted to the County and Department of the Treasury. Cause: Financial accounting data was not being regularly reconciled to the third-party grant tracking system CAPGEMS. Recommendation: We recommend that United Way: 1. Regularly reconcile grant data with financial accounting data. 2. Update data submitted to the County and Department of the Treasury with current financial data. 3. Request that the County amend its grant contract with United Way to allow for an administration fee up to the maximum allowed rates and request additional reimbursement from the County. Context: We reconciled the CAPGEMS records to the financial accounting data, this process was complicated due to different naming conventions and payment amount split outs used in the financial accounting software versus the CAPGEMS database. We believe through this process we have arrived at an accurate representation of the actual activity for the program.
Finding 2022-001
2022-01 Duplicate Payments Federal Agency: U.S. Department of the Treasury Federal Program Name: Emergency Rental Assistance (ERA) 1 & 2 Assistance Listing Number: 21.023 Federal Award Identification Number: ERA0113 & ERA0104 (pass through Marion County) Award Period: 06/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Internal Control Over Financial Reporting Criteria: The U.S. Department of the Treasury’s Emergency Rental Assistance (ERA) program requires compliance with limits on the maximum amount paid to program participants and limits on the period of reimbursements. Condition: During the audit we found that the implementation of internal controls meant to prevent duplicate payments was inadequate. Effect: This resulted in duplication of benefits to 30 identified participants. This failure in internal control could have resulted in exceeding allowable limits for amounts paid to participants, though in sampled participants we determined that all duplicated amounts were within program maximums. Cause: The identified issues stem from deficiencies in internal controls over payment verification. For ERA 1 United Way processed all payments to participants and failed to verify whether payments had already been made before processing additional payments. This was likely due to a failure to upload proof of payment in a timely manner and a lack of any digital system to monitor or detect duplicate payments. For ERA 2 United Way paid for applications that were filed in the ERA 2 database which Capital Access was responsible for paying causing duplicate payments. Recommendation: For grant related expenditures not processed through the standard accounts payable process we recommend that United Way keep a separate listing of payments made and search that list before authorizing new payments to eliminate duplication. Additionally, United Way should verify applications are filed in the ERA 1 database with Capital Access before issuing payments. Context: We conducted a random sample of 60 participants and did not detect any duplicates. However, we were made aware of duplicates as identified in the reconciliations provided by United Way, which were completed in collaboration with the County. We then reviewed these identified duplicates to verify that they were indeed duplicates and sampled them to ensure payments were not in excess of allowable limits.
Finding 2022-002
2022-02 Reconciliation of Grant Financial Data and Reporting Federal Agency: U.S. Department of the Treasury Federal Program Name: Emergency Rental Assistance (ERA) 1 & 2 Assistance Listing Number: 21.023 Federal Award Identification Number: ERA0104 and ERA0113 pass through Marion County Award Period: 06/30/2022 Type of Finding: Material Weakness in Internal Control over Compliance and Internal Control Over Financial Reporting Criteria: Performance Reporting requirements outlined in the ERA program guidance stipulate that recipients must report accurate data. Reported data should be reconciled with internal reporting. External tracking systems of grant-related expenditures should be regularly reconciled to expenditures in the financial accounting system. Condition: During our audit we found that financial accounting system data did not agree with the third-party grant tracking system from Capital Access called “CAPGEMS” which was used to document participant eligibility and payments. Effect: These inaccuracies caused reported direct costs to be understated and retained contract administration fees to be over expended by approximately $87,371 which is payable back to Marion County and additional amounts receivable from Capital Access of approximately $59,197. We will note that though admin fees were over expended in the contract with the County, they were not in excess of the federally allowed rates. Additionally, these inaccuracies caused incorrect reporting in amounts submitted to the County and Department of the Treasury. Cause: Financial accounting data was not being regularly reconciled to the third-party grant tracking system CAPGEMS. Recommendation: We recommend that United Way: 1. Regularly reconcile grant data with financial accounting data. 2. Update data submitted to the County and Department of the Treasury with current financial data. 3. Request that the County amend its grant contract with United Way to allow for an administration fee up to the maximum allowed rates and request additional reimbursement from the County. Context: We reconciled the CAPGEMS records to the financial accounting data, this process was complicated due to different naming conventions and payment amount split outs used in the financial accounting software versus the CAPGEMS database. We believe through this process we have arrived at an accurate representation of the actual activity for the program.