Audit 361224

FY End
2023-06-30
Total Expended
$2.32M
Findings
12
Programs
6
Year: 2023 Accepted: 2025-07-01
Auditor: Ritz Holman LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
569962 2023-001 Material Weakness Yes B
569963 2023-001 Material Weakness Yes B
569964 2023-001 Material Weakness Yes B
569965 2023-002 Material Weakness - B
569966 2023-002 Material Weakness - B
569967 2023-002 Material Weakness - B
1146404 2023-001 Material Weakness Yes B
1146405 2023-001 Material Weakness Yes B
1146406 2023-001 Material Weakness Yes B
1146407 2023-002 Material Weakness - B
1146408 2023-002 Material Weakness - B
1146409 2023-002 Material Weakness - B

Contacts

Name Title Type
C8ZJBGFGQMJ8 Paul Trebian Auditee
4144039735 Katy Sommer Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal and state awards includes the federal and state grant activity of International Institute of Wisconsin, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance and the State Single Audit Guidelines. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization does not use the de minimis cost rate. Indirect costs are allocated based on the type of cost and charged to grants per allowable grant budgets.

Finding Details

1) Federal program and specific federal award Identification: Major Programs • CFDA #19.510 U.S. Refugee Admissions Program o Federal Agency: U.S. Department of State/Bureau of Population, Refugees, and Migration o Pass through Agency: U.S. Committee for Refugees and Immigrants • CFDA #93.576 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agencies: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants Other Impacted Pass-Through Funding • CFDA #93.566 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agency: U.S. Committee for Refugees and Immigrants 2) Criteria: Payroll should be allocated to grants and programs based on actual payroll costs incurred. Allocations should be updated as new grant funds are awarded. Payroll allocation plans should be reviewed for accuracy and safeguard in place to identify any errors. 3) Condition: The Organization created an allocation plan at the beginning of the year; however, as new funding was awarded the plan stayed the same. During the first quarter of the fiscal year, nine employees payroll was over allocated to grants and programs. During the second quarter allocations were updated but still resulted in seven employees’ payroll being allocated to grants and programs. This issue was resolved in the third quarter. However in two months of the fourth quarter three employees were over allocated. The Organization did not accurately update allocation of payroll throughout the year to verify employees were not over allocated. Also, after year end, it came to the Organization’s attention that formulas in their allocation worksheet were not correct. Therefore the calculations of payroll allocations to the various programs were not done correctly. 4) Cause: The Organization does not maintain sufficient payroll allocation support and, accordingly, the payroll allocation is not recorded based on actual costs incurred. The Organization also does not have a process in place to verify the accuracy of their payroll allocations in place, and, accordingly, the payroll allocation is not recorded accurately based on time worked for each grant. 5) Effect: Payroll allocations should be updated and reviewed throughout the year to include all grants and programs to properly account for the activities of the Organization and to properly report payroll costs on cost reports to funding sources. 6) Questioned costs: • Salaries and Benefits $62,058 Major Programs o U.S. Committee for Refugees and Immigrants  Reception & Placement: $47,259  Matching Grant $4,423 Other Impacted Pass-Through Funding o WI Department of Children and Families  Refugee Support Services $7,834  Refugee Health Administration $2,429  Refugee Health Promotion $113 Salaries were computed by calculating FTE allocations over one for each individual employee and multiplying by their respective salary costs for the year. Payroll taxes were over-allocated salary costs multiplied by 7.65%. Employee Benefits were salary costs multiplied by 32%, which was the salaries to benefits ratio the Organization used for the year. 7) Prevalence or consequence: All quarters were impacted by allocation plan issues.  8) Recommendation to prevent future occurrences. We recommend that the Organization develop a time and/or activity reporting methodology to adequately document the payroll charges by grant and program. We also recommend that all cost allocations be reviewed and approved by the executive director. We also recommend that the Organization develop a review process and checks and balances system to adequately test that payroll charges are coded to the correct grants and programs. We also recommend that all calculations be reviewed and approved by the executive director. 9) Views of responsible officials at auditee. See attachment for Organization’s corrective action plan.
1) Federal program and specific federal award Identification: Major Programs • CFDA #19.510 U.S. Refugee Admissions Program o Federal Agency: U.S. Department of State/Bureau of Population, Refugees, and Migration o Pass through Agency: U.S. Committee for Refugees and Immigrants • CFDA #93.576 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agencies: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants Other Impacted Pass-Through Funding • CFDA #93.566 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agency: U.S. Committee for Refugees and Immigrants 2) Criteria: Payroll should be allocated to grants and programs based on actual payroll costs incurred. Allocations should be updated as new grant funds are awarded. Payroll allocation plans should be reviewed for accuracy and safeguard in place to identify any errors. 3) Condition: The Organization created an allocation plan at the beginning of the year; however, as new funding was awarded the plan stayed the same. During the first quarter of the fiscal year, nine employees payroll was over allocated to grants and programs. During the second quarter allocations were updated but still resulted in seven employees’ payroll being allocated to grants and programs. This issue was resolved in the third quarter. However in two months of the fourth quarter three employees were over allocated. The Organization did not accurately update allocation of payroll throughout the year to verify employees were not over allocated. Also, after year end, it came to the Organization’s attention that formulas in their allocation worksheet were not correct. Therefore the calculations of payroll allocations to the various programs were not done correctly. 4) Cause: The Organization does not maintain sufficient payroll allocation support and, accordingly, the payroll allocation is not recorded based on actual costs incurred. The Organization also does not have a process in place to verify the accuracy of their payroll allocations in place, and, accordingly, the payroll allocation is not recorded accurately based on time worked for each grant. 5) Effect: Payroll allocations should be updated and reviewed throughout the year to include all grants and programs to properly account for the activities of the Organization and to properly report payroll costs on cost reports to funding sources. 6) Questioned costs: • Salaries and Benefits $62,058 Major Programs o U.S. Committee for Refugees and Immigrants  Reception & Placement: $47,259  Matching Grant $4,423 Other Impacted Pass-Through Funding o WI Department of Children and Families  Refugee Support Services $7,834  Refugee Health Administration $2,429  Refugee Health Promotion $113 Salaries were computed by calculating FTE allocations over one for each individual employee and multiplying by their respective salary costs for the year. Payroll taxes were over-allocated salary costs multiplied by 7.65%. Employee Benefits were salary costs multiplied by 32%, which was the salaries to benefits ratio the Organization used for the year. 7) Prevalence or consequence: All quarters were impacted by allocation plan issues.  8) Recommendation to prevent future occurrences. We recommend that the Organization develop a time and/or activity reporting methodology to adequately document the payroll charges by grant and program. We also recommend that all cost allocations be reviewed and approved by the executive director. We also recommend that the Organization develop a review process and checks and balances system to adequately test that payroll charges are coded to the correct grants and programs. We also recommend that all calculations be reviewed and approved by the executive director. 9) Views of responsible officials at auditee. See attachment for Organization’s corrective action plan.
1) Federal program and specific federal award Identification: Major Programs • CFDA #19.510 U.S. Refugee Admissions Program o Federal Agency: U.S. Department of State/Bureau of Population, Refugees, and Migration o Pass through Agency: U.S. Committee for Refugees and Immigrants • CFDA #93.576 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agencies: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants Other Impacted Pass-Through Funding • CFDA #93.566 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agency: U.S. Committee for Refugees and Immigrants 2) Criteria: Payroll should be allocated to grants and programs based on actual payroll costs incurred. Allocations should be updated as new grant funds are awarded. Payroll allocation plans should be reviewed for accuracy and safeguard in place to identify any errors. 3) Condition: The Organization created an allocation plan at the beginning of the year; however, as new funding was awarded the plan stayed the same. During the first quarter of the fiscal year, nine employees payroll was over allocated to grants and programs. During the second quarter allocations were updated but still resulted in seven employees’ payroll being allocated to grants and programs. This issue was resolved in the third quarter. However in two months of the fourth quarter three employees were over allocated. The Organization did not accurately update allocation of payroll throughout the year to verify employees were not over allocated. Also, after year end, it came to the Organization’s attention that formulas in their allocation worksheet were not correct. Therefore the calculations of payroll allocations to the various programs were not done correctly. 4) Cause: The Organization does not maintain sufficient payroll allocation support and, accordingly, the payroll allocation is not recorded based on actual costs incurred. The Organization also does not have a process in place to verify the accuracy of their payroll allocations in place, and, accordingly, the payroll allocation is not recorded accurately based on time worked for each grant. 5) Effect: Payroll allocations should be updated and reviewed throughout the year to include all grants and programs to properly account for the activities of the Organization and to properly report payroll costs on cost reports to funding sources. 6) Questioned costs: • Salaries and Benefits $62,058 Major Programs o U.S. Committee for Refugees and Immigrants  Reception & Placement: $47,259  Matching Grant $4,423 Other Impacted Pass-Through Funding o WI Department of Children and Families  Refugee Support Services $7,834  Refugee Health Administration $2,429  Refugee Health Promotion $113 Salaries were computed by calculating FTE allocations over one for each individual employee and multiplying by their respective salary costs for the year. Payroll taxes were over-allocated salary costs multiplied by 7.65%. Employee Benefits were salary costs multiplied by 32%, which was the salaries to benefits ratio the Organization used for the year. 7) Prevalence or consequence: All quarters were impacted by allocation plan issues.  8) Recommendation to prevent future occurrences. We recommend that the Organization develop a time and/or activity reporting methodology to adequately document the payroll charges by grant and program. We also recommend that all cost allocations be reviewed and approved by the executive director. We also recommend that the Organization develop a review process and checks and balances system to adequately test that payroll charges are coded to the correct grants and programs. We also recommend that all calculations be reviewed and approved by the executive director. 9) Views of responsible officials at auditee. See attachment for Organization’s corrective action plan.
1) Federal program and specific federal award Identification: Major Programs • CFDA #19.510 U.S. Refugee Admissions Program o Federal Agency: U.S. Department of State/Bureau of Population, Refugees, and Migration o Pass through Agency: U.S. Committee for Refugees and Immigrants • CFDA #93.576 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agencies: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants Other Impacted Pass-Through Funding • CFDA #93.566 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agency: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants o 2) Criteria: Payroll benefits should be reported at actual costs not estimated percentage. 3) Condition: The Organization used 32% of salaries and wages to report benefits throughout the year. Based on ending balances in benefit accounts, this percentage should have been 19.53%. 4) Cause: The Organization does not have a process in place to ensure benefits are being accurately charged to grants. 5) Effect: Payroll benefit percentages should be reviewed throughout the year for accuracy to ensure all grants and programs properly account for the activities of the Organization and to properly report benefit costs on cost reports to funding sources. 6) Questioned costs: • Employee Benefits $64,011 Major Programs o U.S. Committee for Refugees and Immigrants  Reception & Placement: $18,848  Matching Grant $8,761  Preferred Communities $19,798 Other Impacted Pass-Through Funding o WI Department of Children and Families  Refugee Support Services $12,265  Refugee Health Administration $2,505  Refugee Health Promotion $1,834 7) Prevalence or consequence: This impacted all quarters of the fiscal year. 8) Recommendation to prevent future occurrences. We recommend that the Organization develop a review process and checks and balances system to adequately test that benefit charges are coded to the correct grants and programs for actual amounts. We also recommend that all calculations be reviewed and approved by the executive director. 9) Views of responsible officials at auditee. See attachment for Organization’s corrective action plan.
1) Federal program and specific federal award Identification: Major Programs • CFDA #19.510 U.S. Refugee Admissions Program o Federal Agency: U.S. Department of State/Bureau of Population, Refugees, and Migration o Pass through Agency: U.S. Committee for Refugees and Immigrants • CFDA #93.576 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agencies: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants Other Impacted Pass-Through Funding • CFDA #93.566 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agency: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants o 2) Criteria: Payroll benefits should be reported at actual costs not estimated percentage. 3) Condition: The Organization used 32% of salaries and wages to report benefits throughout the year. Based on ending balances in benefit accounts, this percentage should have been 19.53%. 4) Cause: The Organization does not have a process in place to ensure benefits are being accurately charged to grants. 5) Effect: Payroll benefit percentages should be reviewed throughout the year for accuracy to ensure all grants and programs properly account for the activities of the Organization and to properly report benefit costs on cost reports to funding sources. 6) Questioned costs: • Employee Benefits $64,011 Major Programs o U.S. Committee for Refugees and Immigrants  Reception & Placement: $18,848  Matching Grant $8,761  Preferred Communities $19,798 Other Impacted Pass-Through Funding o WI Department of Children and Families  Refugee Support Services $12,265  Refugee Health Administration $2,505  Refugee Health Promotion $1,834 7) Prevalence or consequence: This impacted all quarters of the fiscal year. 8) Recommendation to prevent future occurrences. We recommend that the Organization develop a review process and checks and balances system to adequately test that benefit charges are coded to the correct grants and programs for actual amounts. We also recommend that all calculations be reviewed and approved by the executive director. 9) Views of responsible officials at auditee. See attachment for Organization’s corrective action plan.
1) Federal program and specific federal award Identification: Major Programs • CFDA #19.510 U.S. Refugee Admissions Program o Federal Agency: U.S. Department of State/Bureau of Population, Refugees, and Migration o Pass through Agency: U.S. Committee for Refugees and Immigrants • CFDA #93.576 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agencies: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants Other Impacted Pass-Through Funding • CFDA #93.566 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agency: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants o 2) Criteria: Payroll benefits should be reported at actual costs not estimated percentage. 3) Condition: The Organization used 32% of salaries and wages to report benefits throughout the year. Based on ending balances in benefit accounts, this percentage should have been 19.53%. 4) Cause: The Organization does not have a process in place to ensure benefits are being accurately charged to grants. 5) Effect: Payroll benefit percentages should be reviewed throughout the year for accuracy to ensure all grants and programs properly account for the activities of the Organization and to properly report benefit costs on cost reports to funding sources. 6) Questioned costs: • Employee Benefits $64,011 Major Programs o U.S. Committee for Refugees and Immigrants  Reception & Placement: $18,848  Matching Grant $8,761  Preferred Communities $19,798 Other Impacted Pass-Through Funding o WI Department of Children and Families  Refugee Support Services $12,265  Refugee Health Administration $2,505  Refugee Health Promotion $1,834 7) Prevalence or consequence: This impacted all quarters of the fiscal year. 8) Recommendation to prevent future occurrences. We recommend that the Organization develop a review process and checks and balances system to adequately test that benefit charges are coded to the correct grants and programs for actual amounts. We also recommend that all calculations be reviewed and approved by the executive director. 9) Views of responsible officials at auditee. See attachment for Organization’s corrective action plan.
1) Federal program and specific federal award Identification: Major Programs • CFDA #19.510 U.S. Refugee Admissions Program o Federal Agency: U.S. Department of State/Bureau of Population, Refugees, and Migration o Pass through Agency: U.S. Committee for Refugees and Immigrants • CFDA #93.576 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agencies: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants Other Impacted Pass-Through Funding • CFDA #93.566 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agency: U.S. Committee for Refugees and Immigrants 2) Criteria: Payroll should be allocated to grants and programs based on actual payroll costs incurred. Allocations should be updated as new grant funds are awarded. Payroll allocation plans should be reviewed for accuracy and safeguard in place to identify any errors. 3) Condition: The Organization created an allocation plan at the beginning of the year; however, as new funding was awarded the plan stayed the same. During the first quarter of the fiscal year, nine employees payroll was over allocated to grants and programs. During the second quarter allocations were updated but still resulted in seven employees’ payroll being allocated to grants and programs. This issue was resolved in the third quarter. However in two months of the fourth quarter three employees were over allocated. The Organization did not accurately update allocation of payroll throughout the year to verify employees were not over allocated. Also, after year end, it came to the Organization’s attention that formulas in their allocation worksheet were not correct. Therefore the calculations of payroll allocations to the various programs were not done correctly. 4) Cause: The Organization does not maintain sufficient payroll allocation support and, accordingly, the payroll allocation is not recorded based on actual costs incurred. The Organization also does not have a process in place to verify the accuracy of their payroll allocations in place, and, accordingly, the payroll allocation is not recorded accurately based on time worked for each grant. 5) Effect: Payroll allocations should be updated and reviewed throughout the year to include all grants and programs to properly account for the activities of the Organization and to properly report payroll costs on cost reports to funding sources. 6) Questioned costs: • Salaries and Benefits $62,058 Major Programs o U.S. Committee for Refugees and Immigrants  Reception & Placement: $47,259  Matching Grant $4,423 Other Impacted Pass-Through Funding o WI Department of Children and Families  Refugee Support Services $7,834  Refugee Health Administration $2,429  Refugee Health Promotion $113 Salaries were computed by calculating FTE allocations over one for each individual employee and multiplying by their respective salary costs for the year. Payroll taxes were over-allocated salary costs multiplied by 7.65%. Employee Benefits were salary costs multiplied by 32%, which was the salaries to benefits ratio the Organization used for the year. 7) Prevalence or consequence: All quarters were impacted by allocation plan issues.  8) Recommendation to prevent future occurrences. We recommend that the Organization develop a time and/or activity reporting methodology to adequately document the payroll charges by grant and program. We also recommend that all cost allocations be reviewed and approved by the executive director. We also recommend that the Organization develop a review process and checks and balances system to adequately test that payroll charges are coded to the correct grants and programs. We also recommend that all calculations be reviewed and approved by the executive director. 9) Views of responsible officials at auditee. See attachment for Organization’s corrective action plan.
1) Federal program and specific federal award Identification: Major Programs • CFDA #19.510 U.S. Refugee Admissions Program o Federal Agency: U.S. Department of State/Bureau of Population, Refugees, and Migration o Pass through Agency: U.S. Committee for Refugees and Immigrants • CFDA #93.576 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agencies: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants Other Impacted Pass-Through Funding • CFDA #93.566 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agency: U.S. Committee for Refugees and Immigrants 2) Criteria: Payroll should be allocated to grants and programs based on actual payroll costs incurred. Allocations should be updated as new grant funds are awarded. Payroll allocation plans should be reviewed for accuracy and safeguard in place to identify any errors. 3) Condition: The Organization created an allocation plan at the beginning of the year; however, as new funding was awarded the plan stayed the same. During the first quarter of the fiscal year, nine employees payroll was over allocated to grants and programs. During the second quarter allocations were updated but still resulted in seven employees’ payroll being allocated to grants and programs. This issue was resolved in the third quarter. However in two months of the fourth quarter three employees were over allocated. The Organization did not accurately update allocation of payroll throughout the year to verify employees were not over allocated. Also, after year end, it came to the Organization’s attention that formulas in their allocation worksheet were not correct. Therefore the calculations of payroll allocations to the various programs were not done correctly. 4) Cause: The Organization does not maintain sufficient payroll allocation support and, accordingly, the payroll allocation is not recorded based on actual costs incurred. The Organization also does not have a process in place to verify the accuracy of their payroll allocations in place, and, accordingly, the payroll allocation is not recorded accurately based on time worked for each grant. 5) Effect: Payroll allocations should be updated and reviewed throughout the year to include all grants and programs to properly account for the activities of the Organization and to properly report payroll costs on cost reports to funding sources. 6) Questioned costs: • Salaries and Benefits $62,058 Major Programs o U.S. Committee for Refugees and Immigrants  Reception & Placement: $47,259  Matching Grant $4,423 Other Impacted Pass-Through Funding o WI Department of Children and Families  Refugee Support Services $7,834  Refugee Health Administration $2,429  Refugee Health Promotion $113 Salaries were computed by calculating FTE allocations over one for each individual employee and multiplying by their respective salary costs for the year. Payroll taxes were over-allocated salary costs multiplied by 7.65%. Employee Benefits were salary costs multiplied by 32%, which was the salaries to benefits ratio the Organization used for the year. 7) Prevalence or consequence: All quarters were impacted by allocation plan issues.  8) Recommendation to prevent future occurrences. We recommend that the Organization develop a time and/or activity reporting methodology to adequately document the payroll charges by grant and program. We also recommend that all cost allocations be reviewed and approved by the executive director. We also recommend that the Organization develop a review process and checks and balances system to adequately test that payroll charges are coded to the correct grants and programs. We also recommend that all calculations be reviewed and approved by the executive director. 9) Views of responsible officials at auditee. See attachment for Organization’s corrective action plan.
1) Federal program and specific federal award Identification: Major Programs • CFDA #19.510 U.S. Refugee Admissions Program o Federal Agency: U.S. Department of State/Bureau of Population, Refugees, and Migration o Pass through Agency: U.S. Committee for Refugees and Immigrants • CFDA #93.576 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agencies: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants Other Impacted Pass-Through Funding • CFDA #93.566 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agency: U.S. Committee for Refugees and Immigrants 2) Criteria: Payroll should be allocated to grants and programs based on actual payroll costs incurred. Allocations should be updated as new grant funds are awarded. Payroll allocation plans should be reviewed for accuracy and safeguard in place to identify any errors. 3) Condition: The Organization created an allocation plan at the beginning of the year; however, as new funding was awarded the plan stayed the same. During the first quarter of the fiscal year, nine employees payroll was over allocated to grants and programs. During the second quarter allocations were updated but still resulted in seven employees’ payroll being allocated to grants and programs. This issue was resolved in the third quarter. However in two months of the fourth quarter three employees were over allocated. The Organization did not accurately update allocation of payroll throughout the year to verify employees were not over allocated. Also, after year end, it came to the Organization’s attention that formulas in their allocation worksheet were not correct. Therefore the calculations of payroll allocations to the various programs were not done correctly. 4) Cause: The Organization does not maintain sufficient payroll allocation support and, accordingly, the payroll allocation is not recorded based on actual costs incurred. The Organization also does not have a process in place to verify the accuracy of their payroll allocations in place, and, accordingly, the payroll allocation is not recorded accurately based on time worked for each grant. 5) Effect: Payroll allocations should be updated and reviewed throughout the year to include all grants and programs to properly account for the activities of the Organization and to properly report payroll costs on cost reports to funding sources. 6) Questioned costs: • Salaries and Benefits $62,058 Major Programs o U.S. Committee for Refugees and Immigrants  Reception & Placement: $47,259  Matching Grant $4,423 Other Impacted Pass-Through Funding o WI Department of Children and Families  Refugee Support Services $7,834  Refugee Health Administration $2,429  Refugee Health Promotion $113 Salaries were computed by calculating FTE allocations over one for each individual employee and multiplying by their respective salary costs for the year. Payroll taxes were over-allocated salary costs multiplied by 7.65%. Employee Benefits were salary costs multiplied by 32%, which was the salaries to benefits ratio the Organization used for the year. 7) Prevalence or consequence: All quarters were impacted by allocation plan issues.  8) Recommendation to prevent future occurrences. We recommend that the Organization develop a time and/or activity reporting methodology to adequately document the payroll charges by grant and program. We also recommend that all cost allocations be reviewed and approved by the executive director. We also recommend that the Organization develop a review process and checks and balances system to adequately test that payroll charges are coded to the correct grants and programs. We also recommend that all calculations be reviewed and approved by the executive director. 9) Views of responsible officials at auditee. See attachment for Organization’s corrective action plan.
1) Federal program and specific federal award Identification: Major Programs • CFDA #19.510 U.S. Refugee Admissions Program o Federal Agency: U.S. Department of State/Bureau of Population, Refugees, and Migration o Pass through Agency: U.S. Committee for Refugees and Immigrants • CFDA #93.576 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agencies: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants Other Impacted Pass-Through Funding • CFDA #93.566 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agency: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants o 2) Criteria: Payroll benefits should be reported at actual costs not estimated percentage. 3) Condition: The Organization used 32% of salaries and wages to report benefits throughout the year. Based on ending balances in benefit accounts, this percentage should have been 19.53%. 4) Cause: The Organization does not have a process in place to ensure benefits are being accurately charged to grants. 5) Effect: Payroll benefit percentages should be reviewed throughout the year for accuracy to ensure all grants and programs properly account for the activities of the Organization and to properly report benefit costs on cost reports to funding sources. 6) Questioned costs: • Employee Benefits $64,011 Major Programs o U.S. Committee for Refugees and Immigrants  Reception & Placement: $18,848  Matching Grant $8,761  Preferred Communities $19,798 Other Impacted Pass-Through Funding o WI Department of Children and Families  Refugee Support Services $12,265  Refugee Health Administration $2,505  Refugee Health Promotion $1,834 7) Prevalence or consequence: This impacted all quarters of the fiscal year. 8) Recommendation to prevent future occurrences. We recommend that the Organization develop a review process and checks and balances system to adequately test that benefit charges are coded to the correct grants and programs for actual amounts. We also recommend that all calculations be reviewed and approved by the executive director. 9) Views of responsible officials at auditee. See attachment for Organization’s corrective action plan.
1) Federal program and specific federal award Identification: Major Programs • CFDA #19.510 U.S. Refugee Admissions Program o Federal Agency: U.S. Department of State/Bureau of Population, Refugees, and Migration o Pass through Agency: U.S. Committee for Refugees and Immigrants • CFDA #93.576 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agencies: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants Other Impacted Pass-Through Funding • CFDA #93.566 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agency: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants o 2) Criteria: Payroll benefits should be reported at actual costs not estimated percentage. 3) Condition: The Organization used 32% of salaries and wages to report benefits throughout the year. Based on ending balances in benefit accounts, this percentage should have been 19.53%. 4) Cause: The Organization does not have a process in place to ensure benefits are being accurately charged to grants. 5) Effect: Payroll benefit percentages should be reviewed throughout the year for accuracy to ensure all grants and programs properly account for the activities of the Organization and to properly report benefit costs on cost reports to funding sources. 6) Questioned costs: • Employee Benefits $64,011 Major Programs o U.S. Committee for Refugees and Immigrants  Reception & Placement: $18,848  Matching Grant $8,761  Preferred Communities $19,798 Other Impacted Pass-Through Funding o WI Department of Children and Families  Refugee Support Services $12,265  Refugee Health Administration $2,505  Refugee Health Promotion $1,834 7) Prevalence or consequence: This impacted all quarters of the fiscal year. 8) Recommendation to prevent future occurrences. We recommend that the Organization develop a review process and checks and balances system to adequately test that benefit charges are coded to the correct grants and programs for actual amounts. We also recommend that all calculations be reviewed and approved by the executive director. 9) Views of responsible officials at auditee. See attachment for Organization’s corrective action plan.
1) Federal program and specific federal award Identification: Major Programs • CFDA #19.510 U.S. Refugee Admissions Program o Federal Agency: U.S. Department of State/Bureau of Population, Refugees, and Migration o Pass through Agency: U.S. Committee for Refugees and Immigrants • CFDA #93.576 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agencies: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants Other Impacted Pass-Through Funding • CFDA #93.566 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agency: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants o 2) Criteria: Payroll benefits should be reported at actual costs not estimated percentage. 3) Condition: The Organization used 32% of salaries and wages to report benefits throughout the year. Based on ending balances in benefit accounts, this percentage should have been 19.53%. 4) Cause: The Organization does not have a process in place to ensure benefits are being accurately charged to grants. 5) Effect: Payroll benefit percentages should be reviewed throughout the year for accuracy to ensure all grants and programs properly account for the activities of the Organization and to properly report benefit costs on cost reports to funding sources. 6) Questioned costs: • Employee Benefits $64,011 Major Programs o U.S. Committee for Refugees and Immigrants  Reception & Placement: $18,848  Matching Grant $8,761  Preferred Communities $19,798 Other Impacted Pass-Through Funding o WI Department of Children and Families  Refugee Support Services $12,265  Refugee Health Administration $2,505  Refugee Health Promotion $1,834 7) Prevalence or consequence: This impacted all quarters of the fiscal year. 8) Recommendation to prevent future occurrences. We recommend that the Organization develop a review process and checks and balances system to adequately test that benefit charges are coded to the correct grants and programs for actual amounts. We also recommend that all calculations be reviewed and approved by the executive director. 9) Views of responsible officials at auditee. See attachment for Organization’s corrective action plan.