Audit 371750

Late Filing of Data Collection Form – Significant Deficiency Federal Programs Affected All major federal programs as listed in Summary of Audit Results. Criteria Uniform Guidance 2 CFR 200.512(a) states: “The audit must be completed, and the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period.” Condition The Center did not submit its Data Collection Form to the Federal Audit Clearinghouse within nine months of its year-end. Cause The timing of the single audit was delayed due to issues in obtaining proper documentation; therefore, the Data Collection Form could not be filed timely. Effect The Center is not in compliance with the filing requirement deadline. Context Uniform Guidance 2 CFR 200.512(a) states: “The audit must be completed, and the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period.” Recommendation We recommend the Center comply with the Uniform Guidance 2 CFR 200.512(a) by submitting the Data Collection Form within the allowable time requirements. Views of Responsible Officials and Planned Corrective Action The Abused Adult Resource Center has contracted with a CPA to prepare the Statement of Expenditures of Federal Awards and to provide support for federal expenditures. Indication of Repeat Finding This is a new finding.

AL 16.575: Allowable Costs - Approval of Timesheets – Material Weakness Criteria A key control surrounding the payroll disbursement process is the presence of approved rates per employee contracts and personnel action forms. Condition During the year, it was also noted that personnel action forms for the year under audit were not available due to a change in staffing and improper paperwork filing. Cause Supporting documentation was not available for review during the audit. Effect Approved personnel action forms were not able to be provided due to staffing changes and improper paperwork filing. Questioned Costs $18,072 Context In 2024, there were changes in staff and programs holding payroll documents. The total amount paid for payroll disbursements chosen for sampling was $28,286. Out of this amount, we were able to substantiate $10,214 of payroll disbursements. Recommendation We recommend that all personnel action forms be maintained and properly filed. View of Responsible Officials and Planned Corrective Actions The Abused Adult Resource Center’s payroll allocations for grants will be documented on timesheets and approved and the hard copies will be filed or scanned onto a local drive kept by the Center. Indication of Repeat Finding This is a new finding.

AL 93.671: Allowable Costs - Allocation of Fringe Benefits– Material Weakness Criteria A key control surrounding payroll payments is the allocation of fringe benefits based on hours worked on each project or grant. Condition During the year, it was noted there was an error in allocation of fringe benefits. Cause Supporting payroll allocation spreadsheet contained errors in allocation formulas. Effect Fringe benefits were not properly allocated based on time and effort of employee. Questioned Costs N/A Context Outsourced accountants create spreadsheets to track allocations of payroll expenses and fringe benefits based on time and effort reports. This spreadsheet is used to post journal entries for payroll and allocated payroll expenses and fringe benefits to different grants. The total amount paid for payroll disbursements chosen for sampling was $88,215. Out of this amount, we were able to substantiate $88,204 of payroll disbursements. Recommendation We recommend spreadsheet formulas be reviewed prior to posting entries and allocating payroll and fringe benefits to grant programs. View of Responsible Officials and Planned Corrective Actions The Abused Adult Resource Center’s payroll allocations for grants will be documented and reviewed by outsourced CPA firm. Indication of Repeat Finding This is a new finding.

AL 93.671: Allowable Costs - Time and Effort Reporting – Material Weakness Criteria A key control surrounding the payroll disbursement process is the presence of timesheets noting time and effort of employees. Condition Payroll registers for a portion of the year could not be obtained to verify payroll allocations charged to grant due to a change in payroll processors. Cause Supporting documentation for payroll allocations was not available for review during the audit. Effect Payroll allocations were unable to be verified. Questioned Costs $50,883 Context In 2024, there were changes in staff and programs holding payroll documents. The total amount paid for payroll including items chosen for sampling was $88,215. Out of this amount, we were able to substantiate $37,332 of payroll expenses. Recommendation We recommend that all approved timesheets be kept on a local server and documenting the methodology for allocating payroll expenses that are reimbursed by grant funds. View of Responsible Officials and Planned Corrective Actions The Abused Adult Resource Center’s payroll allocations for grants will be documented on timesheets and the hard copies will be filed or scanned onto a local drive kept by the Center. Indication of Repeat Finding This is a repeat finding of finding 2023-002 from the prior year.

AL 93.671: Allowable Costs - Personnel Action Forms – Material Weakness Criteria A key control surrounding the payroll disbursement process is the presence of personnel action forms indicating approved pay rates. Condition During the year it was noted that personnel action forms stating approved pay rates could not be found. Cause Due to transition in staff and confusion with filing paperwork, personnel action forms were not found. Effect Personnel action forms were not able to be provided and as such, no approved pay rates were documented. Questioned Costs $79,668 Context In 2024, there were changes in staff and programs holding payroll documents. Approved pay rates were unable to be verified for 10 of the 39 payroll transactions chosen for testing. Recommendation We recommend that all personnel action forms be kept in employee files and that a process is created for filing to ensure that the Center’s staff are able to easily locate the personnel action forms. View of Responsible Officials and Planned Corrective Actions The Abused Adult Resource Center will form a process to ensure filing of personnel action forms is consistent and that hardcopies of personnel action forms are available. Indication of Repeat Finding This is a new finding.