Audit 361880

Criteria: Disbursements made to vendors ought to be supported with an invoice. Cost principles in 2 CFR 200.403(g) require adequate documentation. Condition: A transaction selected for testing did not have adequate documentation to support the payment that was made. Cause: The lack of a formal record keeping process to allow for invoices to be retained in a rational manner caused documentation to be misplaced. Effect or potential effect: Internal control over the financial activities of the YWCA New Hampshire are weakened. Failure to obtain and/or retain a receipt to support payment increases the risk that an inappropriate disbursement is made. Questioned costs: The questioned cost is immaterial as related to this charge without documentation. Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform Guidance. The organization has not required a compliance audit in previous years and management was not aware of the various requirements of the Uniform Guidance. This was a single instance from a nonstatistical haphazard sample. 29 Recommendation: We recommend that processes and procedures be developed to ensure that all supporting documentation is filed and retained in a safe and secure location for future reference, as needed. Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.

Criteria: Payroll payments are based on the timecard submitted for work performed, and the approved rate of pay the employee is entitled to. Time and effort requirements are outlined in 2 CFR 200.430. Condition: In testing payroll transactions, there were numerous instances of inadequate documentation for payroll. There were missing approved pay rate forms and lack of supporting documentation for stipends and differentials paid. There were timecards submitted for support of the payroll which were unapproved, mathematically incorrect, and/or which did not agree to the payroll paid. Cause: The lack of formal processes and procedures for payroll documentation paired with the limited oversight of payroll processing resulted in insufficient supporting information for payroll payments made. Effect or potential effect: Internal control over the financial activities of the YWCA New Hampshire is weakened. Failure to maintain accurate supporting documentation for payroll increases the risk employees are over- or under- paid for work performed. Questioned costs: The questioned costs are unknown, as the amount of payroll that could have been inappropriately charged is unable to be recalculated at this time. Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform Guidance. The organization has not required a compliance audit in previous years and management was not aware of the various requirements of the Uniform Guidance. The payroll deficiencies were a systemic problem noted during the audit. Recommendation: Policies and procedures surrounding payroll should be reviewed with all relevant personnel. Rate of pay forms should be maintained for each employee, signed and approved, and updated for any rate changes. Formal pay rates should be established for all shift differentials and stipends. Timecards should be appropriately completed each week, approved, and reviewed during the payroll processing. Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.

Criteria: The CDBG program required monthly narrative reports as well as monthly beneficiary reports to be submitted. Financial reporting is required under 2 CFR 200.328 and program reporting is required under 2 CFR 200.329. 30 Condition: The required reporting requirements are not deemed to have been met. The reports cannot be located, and therefore it can not be determined if the reports were submitted as required. Cause: The YWCA New Hampshire has had significant turnover in management and administration in recent years. Whether or not such reports were submitted, the information could not be located for purposes of testing. Effect or potential effect: Internal control over the financial activities of the grants is weakened. A specific requirement for the grant was potentially not completed, which could result in required repayment of the grant funds or prevention of future awards. Questioned costs: Questioned costs are not applicable to this finding. Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform Guidance. The organization has not required a compliance audit in previous years and management was not aware of the various requirements of the Uniform Guidance. Recommendation: It is recommended that grant activity be maintained in a dedicated file for future references. We recommend that any documentation related to the grant, including the application, award, requests for reimbursement, quarterly and annual filings, closing report, etc. all be retained in a central location and accessible by management. Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.

Criteria: Payroll payments are based on the timecard submitted for work performed, and the approved rate of pay the employee is entitled to. Time and effort requirements are outlined in 2 CFR 200.430. Condition: In testing payroll transactions, there were numerous instances of inadequate documentation for payroll. There were missing approved pay rate forms and lack of supporting documentation for stipends and differentials paid. There were timecards submitted for support of the payroll which were unapproved, mathematically incorrect, and/or which did not agree to the payroll paid. Cause: The lack of formal processes and procedures for payroll documentation paired with the limited oversight of payroll processing resulted in insufficient supporting information for payroll payments made. Effect or potential effect: Internal control over the financial activities of the YWCA New Hampshire is weakened. Failure to maintain accurate supporting documentation for payroll increases the risk employees are over- or under- paid for work performed. Questioned costs: The questioned costs are unknown, as the amount of payroll that could have been inappropriately charged is unable to be recalculated at this time. Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform Guidance. The organization has not required a compliance audit in previous years and management was not aware of the various requirements of the Uniform Guidance. The payroll deficiencies were a systemic problem noted during the audit. Recommendation: Policies and procedures surrounding payroll should be reviewed with all relevant personnel. Rate of pay forms should be maintained for each employee, signed and approved, and updated for any rate changes. Formal pay rates should be established for all shift differentials and stipends. Timecards should be appropriately completed each week, approved, and reviewed during the payroll processing. Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.

Criteria: VOCA prohibits the use of federal funding for direct food and beverages, including food and water for conferences. General cost provisions are outlined in 2 CFR Part 200 Subpart E. Condition: An invoice for food for an event was submitted for reimbursement under the VOCA program. Cause: Management was not aware of the specific unallowed activity. Effect or potential effect: The YWCA New Hampshire was not in compliance with the requirements of the grant with regards to activities allowed or unallowed. Questioned costs: The questioned cost is immaterial as a result of this unallowed activity. Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform Guidance. The organization has not required a compliance audit in previous years and management was not aware of the various requirements of the Uniform Guidance. This was a single instance from a nonstatistical haphazard sample. Recommendation: It is recommended that each grant award be reviewed for allowed and unallowed activities. Upon submission for reimbursement, the activity should be compared to the grant award to ensure compliance requirements are followed. Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.

Criteria: Time and effort requirements state that employee time must be maintained with sufficient documentation to provide for appropriate allocation to the federal program. Time and effort requirements are outlined in 2 CFR 200.430. 32 Condition: Payroll charges for the grant were based on a percentage of time by employee. This percentage was based on management’s decision and set when budgeting; the percentage charged to the grant was not based on actual hours worked. Cause: Payroll was processed by an outside service provider based on information provided by management. Management did not require the breakdown of hours as it relates to the federal programs which were being charged. Management was unaware of this time and effort requirement. Effect or potential effect: The costs submitted for reimbursement under the grant may not be appropriate. The failure to report time appropriately and allocate by program could increase the risk of errors in amounts reported as expended. Questioned costs: The questioned costs are unknown, as the amount of payroll that could have been inappropriately charged to the grant is unable to be recalculated at this time. The true allocation of hours was not recorded. Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform Guidance. The organization has not required a compliance audit in previous years and management was not aware of the various requirements of the Uniform Guidance. The payroll deficiencies were a systemic problem noted during the audit. Recommendation: We recommend that time and effort be maintained in accordance with the Uniform Guidance. We recommend that employees clearly identify hours by grant program for appropriate allocation of the expenses. Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.

Criteria: Disbursements made to vendors ought to be supported with an invoice. Cost principles in 2 CFR 200.403(g) require adequate documentation. Condition: A transaction selected for testing did not have adequate documentation to support the payment that was made. Cause: The lack of a formal record keeping process to allow for invoices to be retained in a rational manner caused documentation to be misplaced. Effect or potential effect: Internal control over the financial activities of the YWCA New Hampshire are weakened. Failure to obtain and/or retain a receipt to support payment increases the risk that an inappropriate disbursement is made. Questioned costs: The questioned cost is immaterial as related to this charge without documentation. Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform Guidance. The organization has not required a compliance audit in previous years and management was not aware of the various requirements of the Uniform Guidance. This was a single instance from a nonstatistical haphazard sample. 29 Recommendation: We recommend that processes and procedures be developed to ensure that all supporting documentation is filed and retained in a safe and secure location for future reference, as needed. Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.

Criteria: Payroll payments are based on the timecard submitted for work performed, and the approved rate of pay the employee is entitled to. Time and effort requirements are outlined in 2 CFR 200.430. Condition: In testing payroll transactions, there were numerous instances of inadequate documentation for payroll. There were missing approved pay rate forms and lack of supporting documentation for stipends and differentials paid. There were timecards submitted for support of the payroll which were unapproved, mathematically incorrect, and/or which did not agree to the payroll paid. Cause: The lack of formal processes and procedures for payroll documentation paired with the limited oversight of payroll processing resulted in insufficient supporting information for payroll payments made. Effect or potential effect: Internal control over the financial activities of the YWCA New Hampshire is weakened. Failure to maintain accurate supporting documentation for payroll increases the risk employees are over- or under- paid for work performed. Questioned costs: The questioned costs are unknown, as the amount of payroll that could have been inappropriately charged is unable to be recalculated at this time. Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform Guidance. The organization has not required a compliance audit in previous years and management was not aware of the various requirements of the Uniform Guidance. The payroll deficiencies were a systemic problem noted during the audit. Recommendation: Policies and procedures surrounding payroll should be reviewed with all relevant personnel. Rate of pay forms should be maintained for each employee, signed and approved, and updated for any rate changes. Formal pay rates should be established for all shift differentials and stipends. Timecards should be appropriately completed each week, approved, and reviewed during the payroll processing. Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.

Criteria: The CDBG program required monthly narrative reports as well as monthly beneficiary reports to be submitted. Financial reporting is required under 2 CFR 200.328 and program reporting is required under 2 CFR 200.329. 30 Condition: The required reporting requirements are not deemed to have been met. The reports cannot be located, and therefore it can not be determined if the reports were submitted as required. Cause: The YWCA New Hampshire has had significant turnover in management and administration in recent years. Whether or not such reports were submitted, the information could not be located for purposes of testing. Effect or potential effect: Internal control over the financial activities of the grants is weakened. A specific requirement for the grant was potentially not completed, which could result in required repayment of the grant funds or prevention of future awards. Questioned costs: Questioned costs are not applicable to this finding. Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform Guidance. The organization has not required a compliance audit in previous years and management was not aware of the various requirements of the Uniform Guidance. Recommendation: It is recommended that grant activity be maintained in a dedicated file for future references. We recommend that any documentation related to the grant, including the application, award, requests for reimbursement, quarterly and annual filings, closing report, etc. all be retained in a central location and accessible by management. Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.

Criteria: Payroll payments are based on the timecard submitted for work performed, and the approved rate of pay the employee is entitled to. Time and effort requirements are outlined in 2 CFR 200.430. Condition: In testing payroll transactions, there were numerous instances of inadequate documentation for payroll. There were missing approved pay rate forms and lack of supporting documentation for stipends and differentials paid. There were timecards submitted for support of the payroll which were unapproved, mathematically incorrect, and/or which did not agree to the payroll paid. Cause: The lack of formal processes and procedures for payroll documentation paired with the limited oversight of payroll processing resulted in insufficient supporting information for payroll payments made. Effect or potential effect: Internal control over the financial activities of the YWCA New Hampshire is weakened. Failure to maintain accurate supporting documentation for payroll increases the risk employees are over- or under- paid for work performed. Questioned costs: The questioned costs are unknown, as the amount of payroll that could have been inappropriately charged is unable to be recalculated at this time. Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform Guidance. The organization has not required a compliance audit in previous years and management was not aware of the various requirements of the Uniform Guidance. The payroll deficiencies were a systemic problem noted during the audit. Recommendation: Policies and procedures surrounding payroll should be reviewed with all relevant personnel. Rate of pay forms should be maintained for each employee, signed and approved, and updated for any rate changes. Formal pay rates should be established for all shift differentials and stipends. Timecards should be appropriately completed each week, approved, and reviewed during the payroll processing. Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.

Criteria: VOCA prohibits the use of federal funding for direct food and beverages, including food and water for conferences. General cost provisions are outlined in 2 CFR Part 200 Subpart E. Condition: An invoice for food for an event was submitted for reimbursement under the VOCA program. Cause: Management was not aware of the specific unallowed activity. Effect or potential effect: The YWCA New Hampshire was not in compliance with the requirements of the grant with regards to activities allowed or unallowed. Questioned costs: The questioned cost is immaterial as a result of this unallowed activity. Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform Guidance. The organization has not required a compliance audit in previous years and management was not aware of the various requirements of the Uniform Guidance. This was a single instance from a nonstatistical haphazard sample. Recommendation: It is recommended that each grant award be reviewed for allowed and unallowed activities. Upon submission for reimbursement, the activity should be compared to the grant award to ensure compliance requirements are followed. Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.

Criteria: Time and effort requirements state that employee time must be maintained with sufficient documentation to provide for appropriate allocation to the federal program. Time and effort requirements are outlined in 2 CFR 200.430. 32 Condition: Payroll charges for the grant were based on a percentage of time by employee. This percentage was based on management’s decision and set when budgeting; the percentage charged to the grant was not based on actual hours worked. Cause: Payroll was processed by an outside service provider based on information provided by management. Management did not require the breakdown of hours as it relates to the federal programs which were being charged. Management was unaware of this time and effort requirement. Effect or potential effect: The costs submitted for reimbursement under the grant may not be appropriate. The failure to report time appropriately and allocate by program could increase the risk of errors in amounts reported as expended. Questioned costs: The questioned costs are unknown, as the amount of payroll that could have been inappropriately charged to the grant is unable to be recalculated at this time. The true allocation of hours was not recorded. Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform Guidance. The organization has not required a compliance audit in previous years and management was not aware of the various requirements of the Uniform Guidance. The payroll deficiencies were a systemic problem noted during the audit. Recommendation: We recommend that time and effort be maintained in accordance with the Uniform Guidance. We recommend that employees clearly identify hours by grant program for appropriate allocation of the expenses. Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.