Audit 370333

Criteria: The requirements for matching are contained in 2 CFR Section 200.306, This states that any matching costs meet certain criteria including that they be verifiable from the entity’s records. Per the terms and conditions of the award, it is understood and agreed that PAX must provide the minimum amount of cost sharing as stipulated in the budget approved by the Grants Officer. PAX must maintain written records to support all allowable costs which are claimed as being its contribution to cost participation. Condition: Per the terms of the award, PAX agreed to expend an amount not less than $365,986 of the total program cost for financing by the PAX and/or others from non-federal funds in accordance with 2 CFR 200.306. PAX’s books and records did not contain the necessary information to verify whether this matching requirement was met. Citation: 2 CFR 200.306 Cause: PAX did not have an effective internal control system in place for monitoring that the cost sharing requirement was being met. Effect: The accounting team did not allocate the expenses related to the cost share in the books and records throughout the year. However, they provided schedules that detailed the expenses related to the cost share after year-end as part of the audit process. Questioned Costs: None. Context: This was a universal matter that impacted the entity as a whole. Repeat Finding: Yes Recommendation: We recommend that an internal control system be established to monitor PAX’s share of the award costs. This system should include tracking these expenses in a separate cost center in the books and records and reconciles to the amount reported to the grantor as well as the budget. View of Responsible Officials: See Corrective Action Plan attached.

Criteria: Per the requirements contained in 2 CFR 200.512 (a), the auditee is responsible for submitting the data collection form and the reporting package, including the auditors’ reports, within the earlier of 30 days after receipt of the auditors’ report or nine months after the end of the audit period to the federal audit clearinghouse. Condition: The audit package and data collection form were not submitted to the Federal Audit Clearinghouse for the reporting year September 30, 2019 within nine months after the end of the audit period. Citation: 2 CFR 200.512 (a) Cause: Account analyses were not performed in a timely manner throughout the year, and this led to delays in the start of the audit process. Effect: PAX is deficient in its submission of the required audit reporting package and data collection form. As such, PAX is noncompliant with the reporting requirements. Questioned Costs: None. Context: This was a universal matter that impacted the entity as a whole. Repeat Finding: Yes Recommendation: We recommend that PAX implement appropriate policies, procedures, and controls to ensure that future submissions of the Uniform Guidance reports are filed timely. View of Responsible Officials: See Corrective Action Plan attached.