Audit 3659

FINDING #2021-003 – Lack of Expenditure Support and Evidence of Approval for Federal Expenditures Condition During our current year testing of federal expenditures, we noted 8 instances from a sample of 40 expenditures that lacked management approval. In addition, there were 4 expenditures that did not have adequate supporting detail. Criteria Management is responsible for establishing and maintaining an effective system of internal control over financial reporting. Proper approval of expenditures and availability of adequate supporting documentation for expenditures is a key aspect of an effective system of internal control over financial reporting. Cause Management oversight. Effect of Condition Unallowable expenditures may be charged to federal grants. Recommendation We recommend that the board and management establish sufficient controls surrounding federal expenditures.

#2021-004 – Late Submission of Single Audit Report Condition During our current year audit, we noted that the Organization did not submit its fiscal year 2021 single audit report to the Federal Audit Clearinghouse within nine months of its fiscal year-end. Criteria The Organization is required to undergo and complete the Data Collection Form in connection with its single audit within 30 days after receipt of the auditor’s report or nine months of its fiscal year-end, whichever comes first. Cause The Organization did not have procedures in place to have their financial records ready for audit within 9 months. Effect of Condition The filing deadline for the September 30, 2021 single audit was not met. Recommendation The Organization should develop procedures to ensure the timely filing of its single audit report to the Federal Audit Clearinghouse.

FINDING #2021-003 – Lack of Expenditure Support and Evidence of Approval for Federal Expenditures Condition During our current year testing of federal expenditures, we noted 8 instances from a sample of 40 expenditures that lacked management approval. In addition, there were 4 expenditures that did not have adequate supporting detail. Criteria Management is responsible for establishing and maintaining an effective system of internal control over financial reporting. Proper approval of expenditures and availability of adequate supporting documentation for expenditures is a key aspect of an effective system of internal control over financial reporting. Cause Management oversight. Effect of Condition Unallowable expenditures may be charged to federal grants. Recommendation We recommend that the board and management establish sufficient controls surrounding federal expenditures.

#2021-004 – Late Submission of Single Audit Report Condition During our current year audit, we noted that the Organization did not submit its fiscal year 2021 single audit report to the Federal Audit Clearinghouse within nine months of its fiscal year-end. Criteria The Organization is required to undergo and complete the Data Collection Form in connection with its single audit within 30 days after receipt of the auditor’s report or nine months of its fiscal year-end, whichever comes first. Cause The Organization did not have procedures in place to have their financial records ready for audit within 9 months. Effect of Condition The filing deadline for the September 30, 2021 single audit was not met. Recommendation The Organization should develop procedures to ensure the timely filing of its single audit report to the Federal Audit Clearinghouse.