Audit 393148

Condition – Although the Organization incurred allowable costs under these federal awards, adequate documentation supporting the allocation of payroll costs was not maintained. Instead of relying on time and attendance records to substantiate actual time spent on each program, management estimated the amounts charged to federal awards. Criteria – Documentation of actual time and effort devoted to each federal program is required to comply with the provisions of federal grant agreements and to support the accuracy of payroll charges. Effect – Payroll expenditures reported throughout the fiscal year may be inaccurate. *This is a repeated finding from the prior year. The prior year finding number was 2022-001. Recommendation – We recommend that the accounting department implement controls and procedures requiring staff to submit time and attendance records that clearly identify the federal programs to which their time incurred relates. Management's Response - See management's corrective action plan on page 14-15.

Condition – The Organization did not complete the audit of its major federal award programs within the required timeframe and did not submit the Data Collection Form to the Federal Audit Clearinghouse by the required deadline for the year ended December 31, 2023. Criteria – Entities that expend more than $750,000 in federal awards during a fiscal year must have a Single Audit performed and submit the associated reporting package to the Federal Audit Clearinghouse within nine months after fiscal year end (September 30, 2024). Effect – The Organization was not in compliance with federal Single Audit reporting requirements. *This is a repeated finding from the prior year. The prior year finding number was 2022-002 Recommendation – We recommend that the Organization establish and implement policies and procedures to ensure timely preparation of records and timely engagement of an audit firm so that the Single Audit can be completed and the associated reporting package submitted to the Federal Audit Clearing House within the required federal deadlines each year. Management's Response - See management's corrective action plan on page 14-15.

Condition – During our testing of federally funded disbursements, supporting documentation was found to be incomplete. Required invoices, rental reasonableness calculation forms, and evidence of management approval were not retained in the accounting records for several federally funding disbursements at the time of audit completion. In addition, documentation supporting non-financial expenditures was incomplete, and copies of certain contracts were not maintained. Criteria – Uniform Administrative Requirements require non-Federal entities to retain financial records and supporting documentation sufficient to permit the preparation of financial statements and to substantiate costs charged to federal awards. Effect – Although no unallowable costs were identified for the transactions tested, incomplete documentation increases the risk that unallowable or unsupported costs could be charged to Federal programs. Recommendation – Management should strengthen documentation retention procedures to ensure that all federally funded expenditures are supported by complete and appropriate source documentation prior to payment, that copies of significant contracts are maintained, and that records of non financial expenditures are properly retained. Management's Response – See management's corrective action plan on page 14-15.