Audit 394037

Criteria: The Center for Women and Families, Inc. is required to file the monthly or quarterly reimbursement reports within a specified time period to the appropriate agency to ensure compliance with federal regulations and to maintain accountability for federal funds. Statement of Condition: The required reimbursement reports were not filed within the required time frame as specified in the corresponding contract. Cause of Condition: There was significant turnover in the finance department causing miscommunication and delays in obtaining the required documentation and support to file the reports in a timely manner. While The Center for Women and Families, Inc. has implemented processes and procedures to gather the support and complete and file the reimbursement reports in a timely manner, the new procedures were implemented late in the fiscal year. Effect of Condition: The effect is that the compliance requirement to file timely reimbursement reports with the appropriate agency was not met. Recommendation: The newly implemented processes and procedures to gather the support and complete and file the reimbursement reports in a timely manner should be reviewed to ensure that the processes are being effective and reports are being filed timely. Identification of Repeat Finding: The finding is a repeat of the finding noted in the audit for June 30, 2024 as finding 2024-003. Views of Responsible Officials: Management understands and accepts the recommendation as outlined in the Corrective Action Plan.

Criteria: The Center for Women and Families, Inc. is required to maintain accurate and adequate documentation to support the reimbursements requested under cost reimbursement grants to ensure compliance with federal regulations and to maintain accountability and support allowability of use of federal funds. Statement of Condition: There was lack of documentation for staff time that was allocated to specific grants. In several instances, Time Detail Reports and Time Effort Reporting reports from the payroll system were not able to be located or the reports did not support the time allocated to a specific grant. Manual changes were also noted on some of the reports indicating that the employee did not accurately report their time originally. For all instances noted in our sample of 66 transactions, 12 had wages allocated to the grants in amounts less than what was documented. Cause of Condition: There was significant turnover in the finance department causing miscommunication and lack of procedures in maintaining proper documentation of time records to support the reports filed for reimbursement. Also, there was lack of staff training on the proper procedure and purpose of accurate reporting of time. Effect of Condition: The effect is that the compliance requirement to maintain documentation to support the payroll costs allocated to the grants was not met. However, none of the costs were unallowable under the grants. Recommendation: The Center for Women and Families, Inc. should implement processes and procedures and provide staff training in order to properly record time spent on program related grants and that time records should be maintained in manner to provide the requested support for any billings in a timely manner. Views of Responsible Officials: Management understands and accepts the recommendation as outlined in the Corrective Action Plan.