Finding 2023-02 - Activities Allowed or Unallowed Significant Deficiency in Internal Controls over Compliance Identification of the federal program(s): Assistance Listings program titles and numbers: 93.591 Family Violence Prevention and Services Act 14.228 Community Block Development Grant (CBDG-CV) Federal award identification number: 93.591: Ohio Domestic Violence Network (2021-CM-004-479CM), Ohio Office of Criminal Justice Services (2021-SA-RCC-459SA, 2021-AR-003-459AR, 2021-CM-003-459CM, 2023-VP-003-4194) 14.228: Ohio Department of Development (B-D-22-1AE-4) Name of the federal agencies: 93.591 Department of Health and Human Services 14.228 Department of Housing and Urban Development Name of the applicable pass-through entities: 93.591: Ohio Domestic Violence Network, Office of Criminal Justice Services 14.228: Ohio Department of Development Criteria or specific requirement (including statutory, regulatory, or other citation): The 2 CFR section 200.303 of the Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: During the audit, it was noted that 48 out of 50 non-payroll charges for both programs lacked invoice approvals, as approvals were not required for the actual transactions. Instead, approvals are only obtained during the submission of budgets and related modifications. Cause: Failure to adhere to their established process led to the absence of approvals for the actual transactions. Effect or potential effect: Without adequate internal controls to ensure that all charges to the federal program are properly reviewed for allowability, SAOP could be noncompliant with the allowability requirement and might request funds for unallowed costs. Questioned costs: None Context: There are no invoice approvals for non-payroll charges in both programs Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend that SAOP secure approvals for charges related to the federal programs. Views of responsible officials: Management agrees with the finding and recommendation.
Finding 2023-03 - Allowable Costs Requirement Significant Deficiency in Internal Controls over Compliance and Compliance Identification of the federal program(s): Assistance Listings program titles and numbers: 14.228 Community Block Development Grant (CBDG-CV) Federal award identification number: 14.228: Ohio Department of Development (B-D-22-1AE-4) Name of the federal agencies: 14.228 Department of Housing and Urban Development Name of the applicable pass-through entities: 14.228: Ohio Department of Development Criteria or specific requirement (including statutory, regulatory, or other citation): The 2 CFR section 200.303 of the Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: During the audit, it was noted that SAOP was unable to provide payment support documentation for 11 non-payroll transactions. Cause: The related payment support is missing due to the mishandling by previous personnels. Effect or potential effect: Without adequate internal controls to ensure that all charges to the federal program are properly reviewed for allowability, SAOP could be noncompliant with the allowability requirement and might request funds for unallowed costs. Questioned costs: $3,692 Context: Payment supports for non-payroll charges were not provided. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend that SAOP establish a procedure to securely store paymentsupports, ensuring all transactions are supported by proper documentation. Views of responsible officials: Management agrees with the finding and recommendation.
Finding 2023-04 - Allowable Costs Requirement Significant Deficiency in Internal Controls over Compliance and Compliance Identification of the federal program(s): Assistance Listings program titles and numbers: 93.591 Family Violence Prevention and Services Act 14.228 Community Block Development Grant (CBDG-CV) Federal award identification number: 93.591: Ohio Domestic Violence Network (2021-CM-004-479CM), Ohio Office of Criminal Justice Services (2021-SA-RCC-459SA, 2021-AR-003-459AR, 2021-CM-003-459CM, 2023-VP-003-4194) 14.228: Ohio Department of Development (B-D-22-1AE-4) Name of the federal agencies: 93.591 Department of Health and Human Services 14.228 Department of Housing and Urban Development Name of the applicable pass-through entities: 93.591: Ohio Domestic Violence Network, Office of Criminal Justice Services 14.228: Ohio Department of Development Criteria or specific requirement (including statutory, regulatory, or other citation): The 2 CFR section 200.303 of the Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: During the audit, it was noted that payroll charges to federal awards did not align with the actual timesheet allocations. This discrepancy led to inaccurate payroll expenses being reported for the respective programs. Cause: Because of mishandling by previous personnel, the supporting documentation and basis for the payroll amounts charged to the program are not properly documented. Effect or potential effect: Without adequate internal controls to ensure that all charges to the federal program are properly reviewed for allowability, SAOP could be noncompliant with the allowability requirement and might request funds for unallowed costs. Questioned costs: $4,408 Context: Payroll charges not in line with the actual hours worked in the timesheet. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend that SAOP enhance their internal controls over the payroll allocation process by conducting regular reviews and reconciliations to ensure the accuracy of payroll allocations. Views of responsible officials: Management agrees with the finding and recommendation.
Finding 2023-005Period of Performance Significant Deficiency in Internal Controls over Compliance and Compliance Identification of the federal program(s): Assistance Listings program titles and numbers: 14.228 Community Block Development Grant (CBDG-CV) Federal award identification number: 14.228: Ohio Department of Development (B-D-22-1AE-4) Name of the federal agencies: 14.228 Department of Housing and Urban Development Name of the applicable pass-through entities: 14.228: Ohio Department of Development Criteria or specific requirement (including statutory, regulatory, or other citation): The 2 CFR 200.403 of the Uniform Guidance requires that costs must be incurred during the approved period of performance to be allowable under a federal award. Expenses incurred outside this period are not compliant with federal regulations and the terms of the award. Condition: During our audit, we noted six transactions with charges not within the fiscal year 2023. Cause: This error is due to the mishandling by previous personnel. Effect or potential effect: The absence of proper period of performance controls increases the risk of unallowable costs being charged to the federal award, which could result in potential disallowance of these expenses by federal award agencies. Questioned costs: $2,687 Context: SAOP’s policies and procedures do not require monitoring of the proper period of performance. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend that SAOP establish more robust internal controls to guarantee that all non-payroll charges are incurred within the authorized period of performance. This should involve consistent monitoring of grant periods, providing staff training on the period of performance requirements, and conducting periodic reviews of expenditure documentation. Views of responsible officials: Management agrees with the finding and recommendation.
Finding 2023-06 - Reporting Requirement Significant Deficiency in Internal Controls over Compliance and Compliance Identification of the federal program(s): Assistance Listings program titles and numbers: 93.591 Family Violence Prevention and Services Act 14.228 Community Block Development Grant (CBDG-CV) Federal award identification number: 93.591: Ohio Domestic Violence Network (2021-CM-004-479CM), Ohio Office of Criminal Justice Services (2021-SA-RCC-459SA, 2021-AR-003-459AR, 2021-CM-003-459CM, 2023-VP-003-4194) 14.228: Ohio Department of Development (B-D-22-1AE-4) Name of the federal agencies: 93.591 Department of Health and Human Services 14.228 Department of Housing and Urban Development Name of the applicable pass-through entities: 93.591: Ohio Domestic Violence Network, Office of Criminal Justice Services 14.228: Ohio Department of Development Criteria or specific requirement (including statutory, regulatory, or other citation): The 2 CFR section 200.303 of the Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: During the audit, it was noted that SAOP submitted the two required reports for ALN 93.591 after the due dates specified in the grant agreements. Additionally, it was noted that SAOP lacks an internal review process for the required reports for both major programs before they are submitted to the grantors. Cause: The delays were caused by mishandling from previous personnel. The lack of an internal review process is due to inadequate internal controls and oversight within the organization. There is no established procedure for verifying the accuracy and completeness of required reports before submission. Effect or potential effect: Without adequate internal controls in place to ensure that reports are submitted timely and are adequately reviewed, SAOP could be noncompliant with the reporting requirement. Context: Reports were not submitted on time. Questioned costs: None Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend that SAOP establish a procedure to track reporting due dates and implement a process for verifying the accuracy and completeness of required reports before submission. Views of responsible officials: Management agrees with the finding and recommendation.