Audit 406008

Criteria: Payroll expenses are required to be allowable and accurate per the grant agreement. Condition: Grant claims submitted and paid had various errors in shift differential payroll. Errors included an unallowable cost and incorrect calculations for grant claims. Cause: There is not an adequate internal control system in place to determine what is an allowable cost and ensure payroll calculations are accurate. Effect: Several errors were found including an unallowable cost and incorrect calculation of shift differential claimed. Questioned Costs: Unallowable cost of $83 was identified in the sample of ten employee payments reviewed. There were also incorrect calculations on five out of ten employee payments tested resulting in underclaimed amounts. Perspective Information: The shift differential findings are isolated to payroll samples tested but may be pervasive to other payrolls. Repeat Findings: Not a repeat finding. Context: Payroll testing was conducted on a sample of ten employees. One employee had an unallowable cost of $83 that was claimed and reimbursed by the grantor. Five out of ten employees tested had incorrect calculations resulting in underclaimed amounts. Recommendation: Procedures should be established to ensure only allowable costs are submitted to grantors and payroll calculations are accurate. Views of Responsible Officials and Planned Corrective Actions: YWCA acknowledges weaknesses in payroll allowability and calculation accuracy. • Update written payroll procedures for grant-funded employees that define allowable and unallowable pay elements (including shift differentials) and specify documentation requirements. • Configure payroll and accounting systems to properly classify VOCAfunded positions and apply standard shift differential calculations, with automated checks where possible. • Require a secondary review of payroll registers and allocations for VOCAfunded staff before costs are included in reimbursement requests, with sign-off by designated finance team member. • Provide training to HR, payroll, and finance staff on VOCA grant requirements, federal cost principles, and internal review procedures.

Criteria: Grant reimbursement summaries are required to be submitted on a monthly basis detailing expenses incurred that are allowable under the terms of the grant agreement. Reimbursement requirements, including allowable costs and submission timelines, are outlined in the individual grant agreements. These requirements ensure that only eligible expenditures are reimbursed in a timely manner. Condition: Reimbursement reporting was not completed accurately, as a reimbursement claim was submitted for an amount greater than the allowable and reimbursable expenses incurred. Cause: There is not an adequate internal control system in place to review and reconcile reimbursement claims to underlying supporting documentation to ensure amounts submitted are accurate and reflect allowable costs incurred. Effect: Reimbursement claims cannot be accurately relied upon to demonstrate the Organization has properly reconciled and reported allowable expenses in accordance with the grant agreement. As this relates to reporting metrics, there are no questioned costs identified. Questioned Costs: $3,696 – See “Context” section below. Perspective Information: This issue is not considered to be prevalent as no other issues were noted in the items tested. Repeat Findings: This finding is not a repeat finding. Context: Testing was completed on a sample of five out of twenty-four reports submitted for the calendar year for the above VOCA grant. 20% of the reports had deviations between submitted claims and funds received. Claims were over reported as compared to funds received by $3,696. Recommendation: Internal controls and procedures should be established and documentation maintained to ensure reimbursement claims are reviewed and reconciled to supporting documentation prior to submission, and that only allowable costs in accordance with grant agreements are included. Views of Responsible Officials and Planned Corrective Actions: YWCA acknowledges deficiencies in reconciliation of reimbursement claims.• Implement a standardized reimbursement reconciliation worksheet that ties each grant claim to the general ledger, payroll reports, and underlying invoices prior to submission. • Require documented review and approval of each claim by the designated finance team member, confirming that claimed amounts are allowable, supported, and within the grant period. • Provide staff training on claim preparation, reconciliation, and documentation retention expectations.

Criteria: Performance reports must be submitted monthly detailing the progress of performance based on metrics identified by the Office of Victims of Crime (OVC) (VOCA grants). The metrics are detailed in the individual grant agreement. These metrics relate to the number of people served through the program and other nonfinancial objectives. Condition: Reporting for these metrics were not completed accurately. Cause: There is not adequate internal control system to compare and maintain source data established to ensure source data mirrors metrics reported. Effect: Performance reports cannot be accurately relied upon to demonstrate the Organization has met the grant objectives. As these reports deal with performance metrics, there are no questioned costs identified. Questioned Costs: N/A Perspective Information: This issue is not considered to be prevalent as no other issues were noted in the items tested. Repeat Findings: This finding is a repeat finding from the 2023 audit. Finding number was 2023-003. Context: Testing was conducted on two out of twelve reports submitted for the calendar year for the above VOCA grant. 50% of the reports tested had deviations between the source documents and the submitted report metrics for the reporting period. Metrics were under and over reported as compared to source data. Recommendation: Internal controls and procedures should be established and documentation maintained to support all program metrics surrounding each grant reporting. Views of Responsible Officials and Planned Corrective Actions: YWCA acknowledges discrepancies in VOCA data metrics reported.  Utilize and document a consistent process and tools (such as Client Trackmanagement or database system) for effective tracking and reporting of all VOCA program metrics.  Establish a routine for random and planned internal audits of reported metrics, comparing reports to source data to verify accuracy and completeness.  Provide training on proper reporting procedures, best audit practices, and data entry accuracy for all staff involved in VOCA data collection and reporting. Tracking and Documentation:  Organize all VOCA program reports by grant name, month, and year, with reports and supporting source documents maintained together and two signatures (Program Manager and Department Director) to confirm the process.  Ensure all staff sign off on VOCA-related training topics, with documentation saved in their personnel folder.  Conduct internal audits of VOCA performance data on a routine basis (monthly & quarterly) to ensure ongoing compliance and accuracy.

Criteria: Per review of grant agreements, the employees are required to sign a nondiscrimination and drug free policy. Per Organization policy, employees are required to sign a confidentiality statement. Condition: One out of ten employee files tested lacked a signed nondiscrimination and drug policy. One employee also did not have a signed confidentiality statement on file. Cause: There is not an adequate internal control system over employee file documentation. Effect: The Organization is not in compliance with the grant policy requirements. Questioned Costs: N/A Perspective Information: The lack of documentation may be pervasive to other employee files not tested Repeat Findings: This finding is not a repeat finding. Context: Testing was conducted on ten employee files. One employee did not have a signed handbook which included the drug free policy and the nondiscrimination statement. The same employee also did not have a signed confidentiality statement. Recommendation: Procedures should be followed to ensure employee files have proper documentation per grant and Organization policy. Views of Responsible Officials and Planned Corrective Actions: YWCA acknowledges gaps in VOCA employee file documentation.  Implement a standardized checklist for VOCA and other grant-funded employees that includes required acknowledgements (nondiscrimination, drug-free workplace, confidentiality, and related forms).  Educate HR staff in auditing best practices, emphasizing complete and accurate employee files and the specific grant documentation required.  Schedule periodic reviews of VOCA-funded employee files (at least quarterly) to verify that all required documents are present and current, with results reported to management.

Criteria: The Organization is required to submit the Data Collection Form and thereporting package to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end of the year ended under audit. Condition: The Organization did not submit the 2023 Data Collection form within the required nine month timeframe. It was submitted in February 2025. Cause: The Organization did not have sufficient internal controls in place to ensure federal reporting deadlines are met. Effect: The Organization did not comply with federal reporting requirements. Questioned Costs: N/A Perspective Information: This finding was limited to the late submission of the Data Collection Form. The submission was ultimately made; however, it occurred after the required deadline due to accounting issues. Repeat Findings: This is not a repeat finding. Context: The Data Collection Form was late in 2023. Recommendation: The Organization should establish compliance controls to ensure timely submission of the Data Collection Form. This should include assignment of responsibility to a designated official and be monitored by management. Views of Responsible Officials and Planned Corrective Actions: YWCA acknowledges noncompliance with federal reporting timelines.  Create a compliance calendar listing all federal reporting deadlines, including the Data Collection Form due date and interim milestones for audit completion.  Designate outsourced finance team as the responsible official for preparing and submitting the Data Collection Form, with the CEO as backup, and require written confirmation of submission to management and the Finance Committee.  Incorporate a year-end compliance checklist into closing procedures to verify preparation and timely filing of the Data Collection Form.  Provide training to leadership and finance staff on federal reporting requirements and consequences of late submissions.