Audit 410386

Finding No. 2024-003: Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Payroll) –Significant Deficiency in Internal Control over Compliance Federal Program Name: All Pass-through Entity: All Federal Assistance Listing Number: All Criteria In accordance with 2 CFR §200.430(i), charges to federal awards for salaries and wages are required to be based on records that accurately reflect the work performed. These records must support the distribution of the employee’s salary or wages among specific activities or cost objectives. Condition The Coalition allocated employees’ payroll costs to grants based on estimates and did not maintain documentation to support allocations based on actual time and effort. Questioned Costs Unknown. Context The Coalition allocated payroll costs to multiple funding sources based on estimates during the audit period and did not maintain formal documentation to support how costs were distributed. Effect The employee time and payroll costs that are charged to the grant could differ from the actual time and payroll costs expended in support of the grant activities. Cause The Coalition does not have established procedures to ensure that salaries and wages charged to federal awards are supported by records that accurately reflect the work performed. Documentation of personnel expenses should support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one federal award; a federal award and non-federal award; an indirect cost activity and a direct cost activity; two or more indirect activities allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Repeat Finding No Recommendation We recommend that management strengthen processes over payroll cost allocations to ensure amounts charged to funding sources are supported by documented actual time and effort. This may include implementing a formal methodology for allocating payroll costs, establishing procedures for employees to track or otherwise document time spent by program or funding source, and performing periodic reviews and adjustments based on actual activity. In addition, management should ensure that sufficient documentation is maintained to support how payroll costs are allocated and that such processes are consistently applied. Management’s Response/View of Responsible Officials Management agrees with this finding, see the Corrective Action Plan.

Finding No. 2024-004: Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Cost Allocation Plan) – Significant Deficiency in Internal Control over Compliance Federal Program Name: All Pass-through Entity: All Federal Assistance Listing Number: All Criteria In accordance with 2 CFR §200.403 and §200.405, costs charged to federal awards must be adequately documented, allowable, and allocated to programs based on relative benefits received. Organizations allocating shared or indirect costs among multiple funding sources are required to maintain a reasonable, consistently applied, and current cost allocation methodology. Condition The Coalition has not established a formal cost allocation plan (“CAP”) to support the allocation of shared or indirect costs among multiple funding sources and programs. As a result, the Coalition could not demonstrate that costs charged to federal awards were consistently allocated in accordance with a current, formally approved methodology. Questioned Costs Unknown. Context The Coalition allocated shared costs among multiple funding sources during the audit period without a formally documented cost allocation plan. Effect Without a formal cost allocation plan, there is an increased risk that costs charged to federal awards may not be properly allocated, may not reflect relative benefits received, or may not be applied consistently. In addition, the absence of a documented methodology limits the ability to demonstrate that allocations are reasonable and compliant with federal requirements. Cause Procedures were not established to develop, document, and maintain a formal cost allocation methodology for allocating shared or indirect costs. Repeat Finding No Recommendation We recommend that the Coalition develop and formally document a CAP to support the allocation of shared and indirect costs among funding sources. The CAP should clearly define the methodology used to allocate costs, be consistently applied, and be based on relative benefits received. In addition, management should establish procedures for periodic review and update of the CAP to ensure it remains aligned with current operations and funding sources. The CAP should be formally approved by governance and retained as support for cost allocations. Management’s Response/View of Responsible Officials Management agrees with this finding, see the Corrective Action Plan.

Finding No. 2024-005: Reporting and Annual Audit Submission – Noncompliance Federal Program Name: All Pass-through Entity: All Federal Assistance Listing Number: All Criteria As set forth in 2 CFR §200.512 - Report Submission, the audit must be completed and the Data Collection Form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditors’ report, or nine months after the end of the audit period. The due date for the audit and reporting package submission was March 31, 2025. Condition The Coalition did not submit the audit, Data Collection Form, and reporting package by the required deadline of March 31, 2025. Questioned Costs None. Context The Data Collection Form and reporting package were required to be submitted by March 31, 2025. The audit was not completed and submitted by the required deadline due to delays in the preparation of financial reporting information and supporting schedules. Effect The Coalition was not in compliance with the reporting requirements of 2 CFR §200.512, as the audit, Data Collection Form, and reporting package were not submitted by the required deadline. Cause Significant delays in the audit process resulted in the late filing. Repeat Finding No Recommendation We recommend that the Coalition implement procedures to ensure that financial statements, supporting schedules, and Single Audit requirements are prepared and completed on a timely basis to support compliance with federal reporting deadlines. Management’s Response/View of Responsible Officials Management agrees with this finding, see the Corrective Action Plan.