FAC Explorer

Audit 365202

FY End
2023-06-30
Total Expended
$1.24M
Findings
6
Programs
3
Organization: Leadership Memphis (TN)
Year: 2023 Accepted: 2025-08-28
Auditor: Watkins Uiberall PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
575023 2023-007 Significant Deficiency Yes AB
575024 2023-008 Significant Deficiency - B
575025 2023-009 Significant Deficiency Yes B
1151465 2023-007 Significant Deficiency Yes AB
1151466 2023-008 Significant Deficiency - B
1151467 2023-009 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $631,961 Yes 0
14.269 Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (cdbg-Dr) $59,008 - 0
94.024 Social Innovation Fund Pay for Success $8,000 - 0

Contacts

Name Title Type
VEXDBMVR2PM7 Brett Lawson Auditee
9012780016 Clark Province Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: 1. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 2. Pass-through entity identifying numbers are presented where available. 3. There were no federal awards passed through to subrecipients. 4. The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 5. The grant revenue amounts received and expensed (eligible for reimbursement) are subject to audit adjustment. If any expenses are disallowed by the grantor as a result of such audit and claim for reimbursement to the grantor would become a liability of the Organization. In the opinion of management, all grant expenses (eligible for reimbursement) are in compliance with the terms of the grant agreement and applicable federal and state laws and regulations. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Leadership Memphis (the “Organization”), under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: 1. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 2. Pass-through entity identifying numbers are presented where available. 3. There were no federal awards passed through to subrecipients. 4. The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 5. The grant revenue amounts received and expensed (eligible for reimbursement) are subject to audit adjustment. If any expenses are disallowed by the grantor as a result of such audit and claim for reimbursement to the grantor would become a liability of the Organization. In the opinion of management, all grant expenses (eligible for reimbursement) are in compliance with the terms of the grant agreement and applicable federal and state laws and regulations. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 1. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 2. Pass-through entity identifying numbers are presented where available. 3. There were no federal awards passed through to subrecipients. 4. The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 5. The grant revenue amounts received and expensed (eligible for reimbursement) are subject to audit adjustment. If any expenses are disallowed by the grantor as a result of such audit and claim for reimbursement to the grantor would become a liability of the Organization. In the opinion of management, all grant expenses (eligible for reimbursement) are in compliance with the terms of the grant agreement and applicable federal and state laws and regulations.

Finding Details

Finding 2023-007
Lack of Documented Review and Approval of Costs Charged Corrective Action: Although current management was not involved during the audit period, the Organization recognizes the importance of documented expenditure review under Uniform Guidance. A formal procedure is being developed that will require all grant-related expenditures to be reviewed and initialed or electronically approved by authorized personnel. The policy will require documentation that clearly demonstrates both the allowability of the cost and its alignment with approved program activities. These procedures will be implemented and tested beginning with FY26 expenditures.
Finding 2023-008
Lack of Documentation of Payroll Allocations and Pay Rate Approvals Corrective Action: The Organization lacked adequate timekeeping and pay rate documentation controls during FY23, and no current management or staff were present at the time. As of FY26, the Organization has begun implementing new payroll oversight processes. Going forward, timecards will be required for any employee whose time is allocated to multiple functions or funding sources. Management will also require documentation of payroll approvals (e.g., signed letters or memos) for all employees and will store these documents in both hard copy and electronic format. Payroll allocation methodologies will be reassessed at least every three years using a representative time study.
Finding 2023-009
2023-009 – Lack of Documented Allocation Methodologies for Costs Charged to Federal Awards Corrective Action: This finding is a continuation of a prior year deficiency related to the lack of formal allocation methodologies. Management is currently drafting a cost allocation policy that includes specific guidance on how to allocate shared costs (e.g., rent, insurance, software) across programs, management & general, and fundraising functions. The new policy will include acceptable bases such as square footage, staff headcount, or usage logs and will be reviewed annually. All allocations will be supported by schedules retained with the audit documentation.
Finding 2023-007
Lack of Documented Review and Approval of Costs Charged Corrective Action: Although current management was not involved during the audit period, the Organization recognizes the importance of documented expenditure review under Uniform Guidance. A formal procedure is being developed that will require all grant-related expenditures to be reviewed and initialed or electronically approved by authorized personnel. The policy will require documentation that clearly demonstrates both the allowability of the cost and its alignment with approved program activities. These procedures will be implemented and tested beginning with FY26 expenditures.
Finding 2023-008
Lack of Documentation of Payroll Allocations and Pay Rate Approvals Corrective Action: The Organization lacked adequate timekeeping and pay rate documentation controls during FY23, and no current management or staff were present at the time. As of FY26, the Organization has begun implementing new payroll oversight processes. Going forward, timecards will be required for any employee whose time is allocated to multiple functions or funding sources. Management will also require documentation of payroll approvals (e.g., signed letters or memos) for all employees and will store these documents in both hard copy and electronic format. Payroll allocation methodologies will be reassessed at least every three years using a representative time study.
Finding 2023-009
2023-009 – Lack of Documented Allocation Methodologies for Costs Charged to Federal Awards Corrective Action: This finding is a continuation of a prior year deficiency related to the lack of formal allocation methodologies. Management is currently drafting a cost allocation policy that includes specific guidance on how to allocate shared costs (e.g., rent, insurance, software) across programs, management & general, and fundraising functions. The new policy will include acceptable bases such as square footage, staff headcount, or usage logs and will be reviewed annually. All allocations will be supported by schedules retained with the audit documentation.