Audit 39313

FY End
2022-06-30
Total Expended
$1.90M
Findings
12
Programs
6
Year: 2022 Accepted: 2023-03-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
42583 2022-001 Material Weakness - AB
42584 2022-001 Material Weakness - AB
42585 2022-001 Material Weakness - AB
42586 2022-001 Material Weakness - AB
42587 2022-001 Material Weakness - AB
42588 2022-001 Material Weakness - AB
619025 2022-001 Material Weakness - AB
619026 2022-001 Material Weakness - AB
619027 2022-001 Material Weakness - AB
619028 2022-001 Material Weakness - AB
619029 2022-001 Material Weakness - AB
619030 2022-001 Material Weakness - AB

Contacts

Name Title Type
HS6ZG1MX4W15 Lisa Frazier Auditee
4349721712 P. Frank Berry Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of UNITED WAY OF GREATER CHARLOTTESVILLE AND SUBSIDIARY for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.

Finding Details

CRITERIA: The Organization is required to implement a system of internal controls which provides reasonable assurance that charges to federal awards for personnel expenses are accurate, allowable, and properly allocated. CONDITION: The Organization does not have adequate documentation to support payroll allocations. CONTEXT: During dual purpose tests of controls and compliance over payroll disbursements, we noted employees do not maintain time sheets to support their activities. Therefore, allocations to grants are based on estimates of time commitment instead of actual work performed. Additionally, we noted that salary and benefit amounts used in allocations did not agree to underlying payroll records; in some instances amounts were understated, and in other instances they were overstated. In a sample of six pay periods, errors were noted in all six pay periods. EFFECT: Payroll expenses based on actual work performed cannot be determined, and therefore, the accuracy and proper allocation of costs cannot be verified. CAUSE: The Organization received significant passthrough grants as a result of the COVID-19 pandemic, resulting in a substantial increase in federal funding expended within a short period of time. The Organization had limited capacity to implement all requirements included in Uniform Guidance. RECOMMENDATION: We recommend that management: require employees working on federal grants to track their time; allocate payroll expenses to federal grants based on actual time incurred; and establish a system of internal controls over payroll expenses to ensure that charges are accurate, allowable, and properly allocated. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement a system of internal controls which provides reasonable assurance that charges to federal awards for personnel expenses are accurate, allowable, and properly allocated. CONDITION: The Organization does not have adequate documentation to support payroll allocations. CONTEXT: During dual purpose tests of controls and compliance over payroll disbursements, we noted employees do not maintain time sheets to support their activities. Therefore, allocations to grants are based on estimates of time commitment instead of actual work performed. Additionally, we noted that salary and benefit amounts used in allocations did not agree to underlying payroll records; in some instances amounts were understated, and in other instances they were overstated. In a sample of six pay periods, errors were noted in all six pay periods. EFFECT: Payroll expenses based on actual work performed cannot be determined, and therefore, the accuracy and proper allocation of costs cannot be verified. CAUSE: The Organization received significant passthrough grants as a result of the COVID-19 pandemic, resulting in a substantial increase in federal funding expended within a short period of time. The Organization had limited capacity to implement all requirements included in Uniform Guidance. RECOMMENDATION: We recommend that management: require employees working on federal grants to track their time; allocate payroll expenses to federal grants based on actual time incurred; and establish a system of internal controls over payroll expenses to ensure that charges are accurate, allowable, and properly allocated. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement a system of internal controls which provides reasonable assurance that charges to federal awards for personnel expenses are accurate, allowable, and properly allocated. CONDITION: The Organization does not have adequate documentation to support payroll allocations. CONTEXT: During dual purpose tests of controls and compliance over payroll disbursements, we noted employees do not maintain time sheets to support their activities. Therefore, allocations to grants are based on estimates of time commitment instead of actual work performed. Additionally, we noted that salary and benefit amounts used in allocations did not agree to underlying payroll records; in some instances amounts were understated, and in other instances they were overstated. In a sample of six pay periods, errors were noted in all six pay periods. EFFECT: Payroll expenses based on actual work performed cannot be determined, and therefore, the accuracy and proper allocation of costs cannot be verified. CAUSE: The Organization received significant passthrough grants as a result of the COVID-19 pandemic, resulting in a substantial increase in federal funding expended within a short period of time. The Organization had limited capacity to implement all requirements included in Uniform Guidance. RECOMMENDATION: We recommend that management: require employees working on federal grants to track their time; allocate payroll expenses to federal grants based on actual time incurred; and establish a system of internal controls over payroll expenses to ensure that charges are accurate, allowable, and properly allocated. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement a system of internal controls which provides reasonable assurance that charges to federal awards for personnel expenses are accurate, allowable, and properly allocated. CONDITION: The Organization does not have adequate documentation to support payroll allocations. CONTEXT: During dual purpose tests of controls and compliance over payroll disbursements, we noted employees do not maintain time sheets to support their activities. Therefore, allocations to grants are based on estimates of time commitment instead of actual work performed. Additionally, we noted that salary and benefit amounts used in allocations did not agree to underlying payroll records; in some instances amounts were understated, and in other instances they were overstated. In a sample of six pay periods, errors were noted in all six pay periods. EFFECT: Payroll expenses based on actual work performed cannot be determined, and therefore, the accuracy and proper allocation of costs cannot be verified. CAUSE: The Organization received significant passthrough grants as a result of the COVID-19 pandemic, resulting in a substantial increase in federal funding expended within a short period of time. The Organization had limited capacity to implement all requirements included in Uniform Guidance. RECOMMENDATION: We recommend that management: require employees working on federal grants to track their time; allocate payroll expenses to federal grants based on actual time incurred; and establish a system of internal controls over payroll expenses to ensure that charges are accurate, allowable, and properly allocated. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement a system of internal controls which provides reasonable assurance that charges to federal awards for personnel expenses are accurate, allowable, and properly allocated. CONDITION: The Organization does not have adequate documentation to support payroll allocations. CONTEXT: During dual purpose tests of controls and compliance over payroll disbursements, we noted employees do not maintain time sheets to support their activities. Therefore, allocations to grants are based on estimates of time commitment instead of actual work performed. Additionally, we noted that salary and benefit amounts used in allocations did not agree to underlying payroll records; in some instances amounts were understated, and in other instances they were overstated. In a sample of six pay periods, errors were noted in all six pay periods. EFFECT: Payroll expenses based on actual work performed cannot be determined, and therefore, the accuracy and proper allocation of costs cannot be verified. CAUSE: The Organization received significant passthrough grants as a result of the COVID-19 pandemic, resulting in a substantial increase in federal funding expended within a short period of time. The Organization had limited capacity to implement all requirements included in Uniform Guidance. RECOMMENDATION: We recommend that management: require employees working on federal grants to track their time; allocate payroll expenses to federal grants based on actual time incurred; and establish a system of internal controls over payroll expenses to ensure that charges are accurate, allowable, and properly allocated. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement a system of internal controls which provides reasonable assurance that charges to federal awards for personnel expenses are accurate, allowable, and properly allocated. CONDITION: The Organization does not have adequate documentation to support payroll allocations. CONTEXT: During dual purpose tests of controls and compliance over payroll disbursements, we noted employees do not maintain time sheets to support their activities. Therefore, allocations to grants are based on estimates of time commitment instead of actual work performed. Additionally, we noted that salary and benefit amounts used in allocations did not agree to underlying payroll records; in some instances amounts were understated, and in other instances they were overstated. In a sample of six pay periods, errors were noted in all six pay periods. EFFECT: Payroll expenses based on actual work performed cannot be determined, and therefore, the accuracy and proper allocation of costs cannot be verified. CAUSE: The Organization received significant passthrough grants as a result of the COVID-19 pandemic, resulting in a substantial increase in federal funding expended within a short period of time. The Organization had limited capacity to implement all requirements included in Uniform Guidance. RECOMMENDATION: We recommend that management: require employees working on federal grants to track their time; allocate payroll expenses to federal grants based on actual time incurred; and establish a system of internal controls over payroll expenses to ensure that charges are accurate, allowable, and properly allocated. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement a system of internal controls which provides reasonable assurance that charges to federal awards for personnel expenses are accurate, allowable, and properly allocated. CONDITION: The Organization does not have adequate documentation to support payroll allocations. CONTEXT: During dual purpose tests of controls and compliance over payroll disbursements, we noted employees do not maintain time sheets to support their activities. Therefore, allocations to grants are based on estimates of time commitment instead of actual work performed. Additionally, we noted that salary and benefit amounts used in allocations did not agree to underlying payroll records; in some instances amounts were understated, and in other instances they were overstated. In a sample of six pay periods, errors were noted in all six pay periods. EFFECT: Payroll expenses based on actual work performed cannot be determined, and therefore, the accuracy and proper allocation of costs cannot be verified. CAUSE: The Organization received significant passthrough grants as a result of the COVID-19 pandemic, resulting in a substantial increase in federal funding expended within a short period of time. The Organization had limited capacity to implement all requirements included in Uniform Guidance. RECOMMENDATION: We recommend that management: require employees working on federal grants to track their time; allocate payroll expenses to federal grants based on actual time incurred; and establish a system of internal controls over payroll expenses to ensure that charges are accurate, allowable, and properly allocated. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement a system of internal controls which provides reasonable assurance that charges to federal awards for personnel expenses are accurate, allowable, and properly allocated. CONDITION: The Organization does not have adequate documentation to support payroll allocations. CONTEXT: During dual purpose tests of controls and compliance over payroll disbursements, we noted employees do not maintain time sheets to support their activities. Therefore, allocations to grants are based on estimates of time commitment instead of actual work performed. Additionally, we noted that salary and benefit amounts used in allocations did not agree to underlying payroll records; in some instances amounts were understated, and in other instances they were overstated. In a sample of six pay periods, errors were noted in all six pay periods. EFFECT: Payroll expenses based on actual work performed cannot be determined, and therefore, the accuracy and proper allocation of costs cannot be verified. CAUSE: The Organization received significant passthrough grants as a result of the COVID-19 pandemic, resulting in a substantial increase in federal funding expended within a short period of time. The Organization had limited capacity to implement all requirements included in Uniform Guidance. RECOMMENDATION: We recommend that management: require employees working on federal grants to track their time; allocate payroll expenses to federal grants based on actual time incurred; and establish a system of internal controls over payroll expenses to ensure that charges are accurate, allowable, and properly allocated. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement a system of internal controls which provides reasonable assurance that charges to federal awards for personnel expenses are accurate, allowable, and properly allocated. CONDITION: The Organization does not have adequate documentation to support payroll allocations. CONTEXT: During dual purpose tests of controls and compliance over payroll disbursements, we noted employees do not maintain time sheets to support their activities. Therefore, allocations to grants are based on estimates of time commitment instead of actual work performed. Additionally, we noted that salary and benefit amounts used in allocations did not agree to underlying payroll records; in some instances amounts were understated, and in other instances they were overstated. In a sample of six pay periods, errors were noted in all six pay periods. EFFECT: Payroll expenses based on actual work performed cannot be determined, and therefore, the accuracy and proper allocation of costs cannot be verified. CAUSE: The Organization received significant passthrough grants as a result of the COVID-19 pandemic, resulting in a substantial increase in federal funding expended within a short period of time. The Organization had limited capacity to implement all requirements included in Uniform Guidance. RECOMMENDATION: We recommend that management: require employees working on federal grants to track their time; allocate payroll expenses to federal grants based on actual time incurred; and establish a system of internal controls over payroll expenses to ensure that charges are accurate, allowable, and properly allocated. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement a system of internal controls which provides reasonable assurance that charges to federal awards for personnel expenses are accurate, allowable, and properly allocated. CONDITION: The Organization does not have adequate documentation to support payroll allocations. CONTEXT: During dual purpose tests of controls and compliance over payroll disbursements, we noted employees do not maintain time sheets to support their activities. Therefore, allocations to grants are based on estimates of time commitment instead of actual work performed. Additionally, we noted that salary and benefit amounts used in allocations did not agree to underlying payroll records; in some instances amounts were understated, and in other instances they were overstated. In a sample of six pay periods, errors were noted in all six pay periods. EFFECT: Payroll expenses based on actual work performed cannot be determined, and therefore, the accuracy and proper allocation of costs cannot be verified. CAUSE: The Organization received significant passthrough grants as a result of the COVID-19 pandemic, resulting in a substantial increase in federal funding expended within a short period of time. The Organization had limited capacity to implement all requirements included in Uniform Guidance. RECOMMENDATION: We recommend that management: require employees working on federal grants to track their time; allocate payroll expenses to federal grants based on actual time incurred; and establish a system of internal controls over payroll expenses to ensure that charges are accurate, allowable, and properly allocated. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement a system of internal controls which provides reasonable assurance that charges to federal awards for personnel expenses are accurate, allowable, and properly allocated. CONDITION: The Organization does not have adequate documentation to support payroll allocations. CONTEXT: During dual purpose tests of controls and compliance over payroll disbursements, we noted employees do not maintain time sheets to support their activities. Therefore, allocations to grants are based on estimates of time commitment instead of actual work performed. Additionally, we noted that salary and benefit amounts used in allocations did not agree to underlying payroll records; in some instances amounts were understated, and in other instances they were overstated. In a sample of six pay periods, errors were noted in all six pay periods. EFFECT: Payroll expenses based on actual work performed cannot be determined, and therefore, the accuracy and proper allocation of costs cannot be verified. CAUSE: The Organization received significant passthrough grants as a result of the COVID-19 pandemic, resulting in a substantial increase in federal funding expended within a short period of time. The Organization had limited capacity to implement all requirements included in Uniform Guidance. RECOMMENDATION: We recommend that management: require employees working on federal grants to track their time; allocate payroll expenses to federal grants based on actual time incurred; and establish a system of internal controls over payroll expenses to ensure that charges are accurate, allowable, and properly allocated. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement a system of internal controls which provides reasonable assurance that charges to federal awards for personnel expenses are accurate, allowable, and properly allocated. CONDITION: The Organization does not have adequate documentation to support payroll allocations. CONTEXT: During dual purpose tests of controls and compliance over payroll disbursements, we noted employees do not maintain time sheets to support their activities. Therefore, allocations to grants are based on estimates of time commitment instead of actual work performed. Additionally, we noted that salary and benefit amounts used in allocations did not agree to underlying payroll records; in some instances amounts were understated, and in other instances they were overstated. In a sample of six pay periods, errors were noted in all six pay periods. EFFECT: Payroll expenses based on actual work performed cannot be determined, and therefore, the accuracy and proper allocation of costs cannot be verified. CAUSE: The Organization received significant passthrough grants as a result of the COVID-19 pandemic, resulting in a substantial increase in federal funding expended within a short period of time. The Organization had limited capacity to implement all requirements included in Uniform Guidance. RECOMMENDATION: We recommend that management: require employees working on federal grants to track their time; allocate payroll expenses to federal grants based on actual time incurred; and establish a system of internal controls over payroll expenses to ensure that charges are accurate, allowable, and properly allocated. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.