Audit 364547

Condition: During our audit we reviewed the expenditures included on the Organization’s schedule of expenditures of federal awards. We noted the Organization did not include all federal expenditures incurred during the reporting period. Criteria: As described in 2 CFR § 200.510(b) the Organization is required to prepare a schedule of expenditures of federal awards for the period covered by the auditee’s financial statements. This schedule must include total federal awards expended. Cause: The Organization utilizes an outsourced accountants to assist with the management of the Organization’s finances. During the year the Organization received a grant related to the construction of a community center. The Organization hired another contractor to assist with the construction of the community center. There are multiple entities with unique understanding of the finances tied to the federal program selected for testing. Effect: Due to not including all federal expenditures on the schedule of expenditures of federal awards this caused the schedule to be understated to a material degree. Recommendation: After thoroughly reviewing the unique circumstance that led to this audit finding, we have determined that it is highly unlikely to recur. Given the organization's strong compliance history and familiarity with SEFA reporting under Uniform Guidance, we do not see a cost-effective benefit to revamping internal controls specifically for this issue. Instead, we recommend continuing to; review government awards, provide refresher trainings to staff, and conduct periodic reviews of internal controls to ensure ongoing compliance. These measures will effectively address the finding without incurring unnecessary costs. Views of Resposible Officials: Management agrees with the finding.

Condition: During our audit we reviewed the expenditures included on the Organization’s schedule of expenditures of federal awards. We noted the Organization did not include all federal expenditures incurred during the reporting period. Criteria: As described in 2 CFR § 200.510(b) the Organization is required to prepare a schedule of expenditures of federal awards for the period covered by the auditee’s financial statements. This schedule must include total federal awards expended. Cause: The Organization utilizes an outsourced accountants to assist with the management of the Organization’s finances. During the year the Organization received a grant related to the construction of a community center. The Organization hired another contractor to assist with the construction of the community center. There are multiple entities with unique understanding of the finances tied to the federal program selected for testing. Effect: Due to not including all federal expenditures on the schedule of expenditures of federal awards this caused the schedule to be understated to a material degree. Recommendation: After thoroughly reviewing the unique circumstance that led to this audit finding, we have determined that it is highly unlikely to recur. Given the organization's strong compliance history and familiarity with SEFA reporting under Uniform Guidance, we do not see a cost-effective benefit to revamping internal controls specifically for this issue. Instead, we recommend continuing to; review government awards, provide refresher trainings to staff, and conduct periodic reviews of internal controls to ensure ongoing compliance. These measures will effectively address the finding without incurring unnecessary costs. Views of Resposible Officials: Management agrees with the finding.