Audit 381373

Finding: 2022-002 – Allowable Costs, Period of Performance and Reporting – Material Weakness in Internal Control over Compliance Criteria: The Organization should have performed and documented their controls over allowable costs, period of performance and reporting. Further, the Organization should have a documented process of review and approval of timecards to ensure that the payroll charged to the federal grant is accurate Condition: During the audit, we noted that while in the testing of transactions for allowable costs, period of performance and reporting, the Organization did not have proper documentation of approvals. This includes no proper review or approval by the Finance Manager for allowable costs or period of performance expenditures prepared by the Grant Administrator that should have been reviewed by the Finance Manager. In addition, there was no proper review or approval by the Director of Operations after invoices were recorded. For the reporting requirements, the reports prepared by the Finance Manager were not reviewed nor approved before submission. With these lack of reviews and approvals, the Organization did not meet the minimum requirements of 2 CFR section 200.514. Cause: The Organization does not perform controls over allowable costs, period of performance or reporting. Effect: Due to the condition noted above, the Organization did not follow the requirements of 2 CFR section 200.514, which includes internal controls over reimbursements. The Organization does not have sufficient controls set in place to document the review and approval of the expenditures and reimbursements. Recommendation: The Organization should implement controls over allowable costs, period of performance and reporting requirements including review of expenditures and report submissions prior to recording or submitting. View of Responsible Officials and Planned Correction Action: Management agrees with the finding presented by the audit. Management has taken corrective actions to meet this standard.

Finding: 2022-003 – Procurement – Material Weakness in Internal Control over Compliance Criteria: The Organization should have and use documented procurement procedures, consistent with the standards for any method of procurement used for the acquisition of property or services required under a Federal or sub-award. Condition: During the audit, we noted that a procurement policy meeting the minimum requirements under 2 CFR 200.320 was not in place at the Organization. Cause: The Organization received a new grant in 2022 and was therefore required to have a procurement policy in place meeting the minimum standards under 2 CFR 200.320. The Organization was unaware of the requirement and did not implement a policy. Effect: Due to the condition above noted, the Organization did not follow procurement standards under 2 CFR 200.320 when acquiring services. Recommendation: The Organization should implement a procurement policy that meets the standards requirement under CFR 200.320 and ensure that all relevant personnel are aware of and follow the requirements in place View of Responsible Officials and Planned Correction Action: Management agrees with the finding presented by the audit. Management has taken corrective actions to meet this standard.