Audit 40097

FY End
2022-09-30
Total Expended
$774,110
Findings
16
Programs
4
Year: 2022 Accepted: 2023-06-29
Auditor: One River CPAS

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
43448 2022-001 Material Weakness - B
43449 2022-002 - - H
43450 2022-001 Material Weakness - B
43451 2022-002 - - H
43452 2022-001 Material Weakness - B
43453 2022-002 - - H
43454 2022-001 Material Weakness - B
43455 2022-002 - - H
619890 2022-001 Material Weakness - B
619891 2022-002 - - H
619892 2022-001 Material Weakness - B
619893 2022-002 - - H
619894 2022-001 Material Weakness - B
619895 2022-002 - - H
619896 2022-001 Material Weakness - B
619897 2022-002 - - H

Contacts

Name Title Type
GHMEJX6CR6K8 Megan Hannan Auditee
2076453764 Matt Walker, CPA Auditor
No contacts on file

Notes to SEFA

Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Maine Community Action Association (the Association) under programs of the federal government for the year ended September 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 Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Association. SIGNIFICANT 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. INDIRECT COST RATE The Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. DONATED PERSONAL PROTECTIVE EQUIPMENT The Association did not receive any donated Personal Protective Equipment purchased with federal funding during the year ended September 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

2022-001 Noncompliance and Internal Controls over Compliance with Cost Principles ? Compensation ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.430(i)(1)(viii) states budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity's written policies) are identified and entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition and Context ? Audit procedures revealed that there was a lack of clear documentation to support the actual hours that were allocated or expensed to each agreement. Cause ? The Association?s internal policy states all time entries are to reflect the time actually spent performing assigned duties on each job. In practice, the Association records payroll expenses by award based on an estimate with a set number of hours allocated per week to each award. Actual payroll hours expensed to the grant were not tracked. Effect ? The Association was not in compliance with financial management standards for maintaining payroll expenditure supporting documentation. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over payroll recording and documentation to ensure compliance with Uniform Administrative Requirements, as well as their own time entry policies. Views of Responsible Officials and Planned Corrective Actions ? Senior management has reviewed the Association?s policies for payroll time with the full management team. The Association will continue to use an estimate for payroll hours expensed to awards, but will also record or track actual hours and consider the need for a subsequent adjustment.
2022-002 Noncompliance with Period of Performance and Internal Controls Over Compliance ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.308, 200.309, and 200.403(h). An entity may charge to the federal award only allowable costs incurred during the approved budget period of a federal award?s period of performance. Condition and Context ? Single audit procedures noted one expenditure that included FY2022 and FY2023 amounts. The expenditure included amounts related to October 2022, which is after the federal award period of performance, but was expensed in full to the award as of September 30, 2022. Cause ? Oversight on reviewing the cutoff of direct expenditures prior to the end of the award?s period of performance. Effect ? An expenditure below compliance materiality that was incurred after the award?s period of performance was expensed. Management posted an adjustment to remove the amounts applicable to FY2023. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over direct federal award expenditures and ensure compliance with Uniform Administrative Requirements. In addition, management should seek appropriate training for financial department staff to ensure proper cutoff of program expenditures. Views of Responsible Officials and Planned Corrective Actions ? The Association has emphasized the period of performance for all programs. Management has agreed to strengthen controls and provide training for program expenditure cutoff.
2022-001 Noncompliance and Internal Controls over Compliance with Cost Principles ? Compensation ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.430(i)(1)(viii) states budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity's written policies) are identified and entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition and Context ? Audit procedures revealed that there was a lack of clear documentation to support the actual hours that were allocated or expensed to each agreement. Cause ? The Association?s internal policy states all time entries are to reflect the time actually spent performing assigned duties on each job. In practice, the Association records payroll expenses by award based on an estimate with a set number of hours allocated per week to each award. Actual payroll hours expensed to the grant were not tracked. Effect ? The Association was not in compliance with financial management standards for maintaining payroll expenditure supporting documentation. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over payroll recording and documentation to ensure compliance with Uniform Administrative Requirements, as well as their own time entry policies. Views of Responsible Officials and Planned Corrective Actions ? Senior management has reviewed the Association?s policies for payroll time with the full management team. The Association will continue to use an estimate for payroll hours expensed to awards, but will also record or track actual hours and consider the need for a subsequent adjustment.
2022-002 Noncompliance with Period of Performance and Internal Controls Over Compliance ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.308, 200.309, and 200.403(h). An entity may charge to the federal award only allowable costs incurred during the approved budget period of a federal award?s period of performance. Condition and Context ? Single audit procedures noted one expenditure that included FY2022 and FY2023 amounts. The expenditure included amounts related to October 2022, which is after the federal award period of performance, but was expensed in full to the award as of September 30, 2022. Cause ? Oversight on reviewing the cutoff of direct expenditures prior to the end of the award?s period of performance. Effect ? An expenditure below compliance materiality that was incurred after the award?s period of performance was expensed. Management posted an adjustment to remove the amounts applicable to FY2023. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over direct federal award expenditures and ensure compliance with Uniform Administrative Requirements. In addition, management should seek appropriate training for financial department staff to ensure proper cutoff of program expenditures. Views of Responsible Officials and Planned Corrective Actions ? The Association has emphasized the period of performance for all programs. Management has agreed to strengthen controls and provide training for program expenditure cutoff.
2022-001 Noncompliance and Internal Controls over Compliance with Cost Principles ? Compensation ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.430(i)(1)(viii) states budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity's written policies) are identified and entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition and Context ? Audit procedures revealed that there was a lack of clear documentation to support the actual hours that were allocated or expensed to each agreement. Cause ? The Association?s internal policy states all time entries are to reflect the time actually spent performing assigned duties on each job. In practice, the Association records payroll expenses by award based on an estimate with a set number of hours allocated per week to each award. Actual payroll hours expensed to the grant were not tracked. Effect ? The Association was not in compliance with financial management standards for maintaining payroll expenditure supporting documentation. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over payroll recording and documentation to ensure compliance with Uniform Administrative Requirements, as well as their own time entry policies. Views of Responsible Officials and Planned Corrective Actions ? Senior management has reviewed the Association?s policies for payroll time with the full management team. The Association will continue to use an estimate for payroll hours expensed to awards, but will also record or track actual hours and consider the need for a subsequent adjustment.
2022-002 Noncompliance with Period of Performance and Internal Controls Over Compliance ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.308, 200.309, and 200.403(h). An entity may charge to the federal award only allowable costs incurred during the approved budget period of a federal award?s period of performance. Condition and Context ? Single audit procedures noted one expenditure that included FY2022 and FY2023 amounts. The expenditure included amounts related to October 2022, which is after the federal award period of performance, but was expensed in full to the award as of September 30, 2022. Cause ? Oversight on reviewing the cutoff of direct expenditures prior to the end of the award?s period of performance. Effect ? An expenditure below compliance materiality that was incurred after the award?s period of performance was expensed. Management posted an adjustment to remove the amounts applicable to FY2023. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over direct federal award expenditures and ensure compliance with Uniform Administrative Requirements. In addition, management should seek appropriate training for financial department staff to ensure proper cutoff of program expenditures. Views of Responsible Officials and Planned Corrective Actions ? The Association has emphasized the period of performance for all programs. Management has agreed to strengthen controls and provide training for program expenditure cutoff.
2022-001 Noncompliance and Internal Controls over Compliance with Cost Principles ? Compensation ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.430(i)(1)(viii) states budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity's written policies) are identified and entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition and Context ? Audit procedures revealed that there was a lack of clear documentation to support the actual hours that were allocated or expensed to each agreement. Cause ? The Association?s internal policy states all time entries are to reflect the time actually spent performing assigned duties on each job. In practice, the Association records payroll expenses by award based on an estimate with a set number of hours allocated per week to each award. Actual payroll hours expensed to the grant were not tracked. Effect ? The Association was not in compliance with financial management standards for maintaining payroll expenditure supporting documentation. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over payroll recording and documentation to ensure compliance with Uniform Administrative Requirements, as well as their own time entry policies. Views of Responsible Officials and Planned Corrective Actions ? Senior management has reviewed the Association?s policies for payroll time with the full management team. The Association will continue to use an estimate for payroll hours expensed to awards, but will also record or track actual hours and consider the need for a subsequent adjustment.
2022-002 Noncompliance with Period of Performance and Internal Controls Over Compliance ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.308, 200.309, and 200.403(h). An entity may charge to the federal award only allowable costs incurred during the approved budget period of a federal award?s period of performance. Condition and Context ? Single audit procedures noted one expenditure that included FY2022 and FY2023 amounts. The expenditure included amounts related to October 2022, which is after the federal award period of performance, but was expensed in full to the award as of September 30, 2022. Cause ? Oversight on reviewing the cutoff of direct expenditures prior to the end of the award?s period of performance. Effect ? An expenditure below compliance materiality that was incurred after the award?s period of performance was expensed. Management posted an adjustment to remove the amounts applicable to FY2023. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over direct federal award expenditures and ensure compliance with Uniform Administrative Requirements. In addition, management should seek appropriate training for financial department staff to ensure proper cutoff of program expenditures. Views of Responsible Officials and Planned Corrective Actions ? The Association has emphasized the period of performance for all programs. Management has agreed to strengthen controls and provide training for program expenditure cutoff.
2022-001 Noncompliance and Internal Controls over Compliance with Cost Principles ? Compensation ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.430(i)(1)(viii) states budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity's written policies) are identified and entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition and Context ? Audit procedures revealed that there was a lack of clear documentation to support the actual hours that were allocated or expensed to each agreement. Cause ? The Association?s internal policy states all time entries are to reflect the time actually spent performing assigned duties on each job. In practice, the Association records payroll expenses by award based on an estimate with a set number of hours allocated per week to each award. Actual payroll hours expensed to the grant were not tracked. Effect ? The Association was not in compliance with financial management standards for maintaining payroll expenditure supporting documentation. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over payroll recording and documentation to ensure compliance with Uniform Administrative Requirements, as well as their own time entry policies. Views of Responsible Officials and Planned Corrective Actions ? Senior management has reviewed the Association?s policies for payroll time with the full management team. The Association will continue to use an estimate for payroll hours expensed to awards, but will also record or track actual hours and consider the need for a subsequent adjustment.
2022-002 Noncompliance with Period of Performance and Internal Controls Over Compliance ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.308, 200.309, and 200.403(h). An entity may charge to the federal award only allowable costs incurred during the approved budget period of a federal award?s period of performance. Condition and Context ? Single audit procedures noted one expenditure that included FY2022 and FY2023 amounts. The expenditure included amounts related to October 2022, which is after the federal award period of performance, but was expensed in full to the award as of September 30, 2022. Cause ? Oversight on reviewing the cutoff of direct expenditures prior to the end of the award?s period of performance. Effect ? An expenditure below compliance materiality that was incurred after the award?s period of performance was expensed. Management posted an adjustment to remove the amounts applicable to FY2023. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over direct federal award expenditures and ensure compliance with Uniform Administrative Requirements. In addition, management should seek appropriate training for financial department staff to ensure proper cutoff of program expenditures. Views of Responsible Officials and Planned Corrective Actions ? The Association has emphasized the period of performance for all programs. Management has agreed to strengthen controls and provide training for program expenditure cutoff.
2022-001 Noncompliance and Internal Controls over Compliance with Cost Principles ? Compensation ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.430(i)(1)(viii) states budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity's written policies) are identified and entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition and Context ? Audit procedures revealed that there was a lack of clear documentation to support the actual hours that were allocated or expensed to each agreement. Cause ? The Association?s internal policy states all time entries are to reflect the time actually spent performing assigned duties on each job. In practice, the Association records payroll expenses by award based on an estimate with a set number of hours allocated per week to each award. Actual payroll hours expensed to the grant were not tracked. Effect ? The Association was not in compliance with financial management standards for maintaining payroll expenditure supporting documentation. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over payroll recording and documentation to ensure compliance with Uniform Administrative Requirements, as well as their own time entry policies. Views of Responsible Officials and Planned Corrective Actions ? Senior management has reviewed the Association?s policies for payroll time with the full management team. The Association will continue to use an estimate for payroll hours expensed to awards, but will also record or track actual hours and consider the need for a subsequent adjustment.
2022-002 Noncompliance with Period of Performance and Internal Controls Over Compliance ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.308, 200.309, and 200.403(h). An entity may charge to the federal award only allowable costs incurred during the approved budget period of a federal award?s period of performance. Condition and Context ? Single audit procedures noted one expenditure that included FY2022 and FY2023 amounts. The expenditure included amounts related to October 2022, which is after the federal award period of performance, but was expensed in full to the award as of September 30, 2022. Cause ? Oversight on reviewing the cutoff of direct expenditures prior to the end of the award?s period of performance. Effect ? An expenditure below compliance materiality that was incurred after the award?s period of performance was expensed. Management posted an adjustment to remove the amounts applicable to FY2023. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over direct federal award expenditures and ensure compliance with Uniform Administrative Requirements. In addition, management should seek appropriate training for financial department staff to ensure proper cutoff of program expenditures. Views of Responsible Officials and Planned Corrective Actions ? The Association has emphasized the period of performance for all programs. Management has agreed to strengthen controls and provide training for program expenditure cutoff.
2022-001 Noncompliance and Internal Controls over Compliance with Cost Principles ? Compensation ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.430(i)(1)(viii) states budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity's written policies) are identified and entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition and Context ? Audit procedures revealed that there was a lack of clear documentation to support the actual hours that were allocated or expensed to each agreement. Cause ? The Association?s internal policy states all time entries are to reflect the time actually spent performing assigned duties on each job. In practice, the Association records payroll expenses by award based on an estimate with a set number of hours allocated per week to each award. Actual payroll hours expensed to the grant were not tracked. Effect ? The Association was not in compliance with financial management standards for maintaining payroll expenditure supporting documentation. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over payroll recording and documentation to ensure compliance with Uniform Administrative Requirements, as well as their own time entry policies. Views of Responsible Officials and Planned Corrective Actions ? Senior management has reviewed the Association?s policies for payroll time with the full management team. The Association will continue to use an estimate for payroll hours expensed to awards, but will also record or track actual hours and consider the need for a subsequent adjustment.
2022-002 Noncompliance with Period of Performance and Internal Controls Over Compliance ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.308, 200.309, and 200.403(h). An entity may charge to the federal award only allowable costs incurred during the approved budget period of a federal award?s period of performance. Condition and Context ? Single audit procedures noted one expenditure that included FY2022 and FY2023 amounts. The expenditure included amounts related to October 2022, which is after the federal award period of performance, but was expensed in full to the award as of September 30, 2022. Cause ? Oversight on reviewing the cutoff of direct expenditures prior to the end of the award?s period of performance. Effect ? An expenditure below compliance materiality that was incurred after the award?s period of performance was expensed. Management posted an adjustment to remove the amounts applicable to FY2023. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over direct federal award expenditures and ensure compliance with Uniform Administrative Requirements. In addition, management should seek appropriate training for financial department staff to ensure proper cutoff of program expenditures. Views of Responsible Officials and Planned Corrective Actions ? The Association has emphasized the period of performance for all programs. Management has agreed to strengthen controls and provide training for program expenditure cutoff.
2022-001 Noncompliance and Internal Controls over Compliance with Cost Principles ? Compensation ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.430(i)(1)(viii) states budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity's written policies) are identified and entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition and Context ? Audit procedures revealed that there was a lack of clear documentation to support the actual hours that were allocated or expensed to each agreement. Cause ? The Association?s internal policy states all time entries are to reflect the time actually spent performing assigned duties on each job. In practice, the Association records payroll expenses by award based on an estimate with a set number of hours allocated per week to each award. Actual payroll hours expensed to the grant were not tracked. Effect ? The Association was not in compliance with financial management standards for maintaining payroll expenditure supporting documentation. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over payroll recording and documentation to ensure compliance with Uniform Administrative Requirements, as well as their own time entry policies. Views of Responsible Officials and Planned Corrective Actions ? Senior management has reviewed the Association?s policies for payroll time with the full management team. The Association will continue to use an estimate for payroll hours expensed to awards, but will also record or track actual hours and consider the need for a subsequent adjustment.
2022-002 Noncompliance with Period of Performance and Internal Controls Over Compliance ? 93.569 Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.308, 200.309, and 200.403(h). An entity may charge to the federal award only allowable costs incurred during the approved budget period of a federal award?s period of performance. Condition and Context ? Single audit procedures noted one expenditure that included FY2022 and FY2023 amounts. The expenditure included amounts related to October 2022, which is after the federal award period of performance, but was expensed in full to the award as of September 30, 2022. Cause ? Oversight on reviewing the cutoff of direct expenditures prior to the end of the award?s period of performance. Effect ? An expenditure below compliance materiality that was incurred after the award?s period of performance was expensed. Management posted an adjustment to remove the amounts applicable to FY2023. Questioned Costs ? None Recommendations ? Management should strengthen their processes, controls, and review over direct federal award expenditures and ensure compliance with Uniform Administrative Requirements. In addition, management should seek appropriate training for financial department staff to ensure proper cutoff of program expenditures. Views of Responsible Officials and Planned Corrective Actions ? The Association has emphasized the period of performance for all programs. Management has agreed to strengthen controls and provide training for program expenditure cutoff.