Audit 414029

Criteria or specific requirement: 2 CFR Section 200.329(b) requires the entity to submit performance reports with the applicable information no less than quarterly. Condition: 2 out of 2 quarterly reports sampled were not submitted. Questioned costs: None. Context: During our testing of reporting, 2 out of the 2 quarterly reports sampled were submitted. Cause: Policies and procedures are not in place to ensure reports are submitted. Effect: Required performance report not submitted. Repeat finding: Yes. Recommendation: We recommend the organization create and or update policies and procedures to ensure all required reports are submitted timely and accurately. Views of responsible officials: There is no disagreement with the audit finding.|

Criteria or specific requirement: CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.303 specifies that a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The Organization did not have policies and procedures in place to ensure all the requirements of subrecipient monitoring were being performed. Questioned costs: None. Context: None of the 5 subrecipients selected for testing (out of a population of 10) had proper monitoring in place. Cause: Policies and procedures were not in place to provide adequate subrecipient monitoring. Effect: The Organization could pass through federal funding to subrecipients who are not responsible or capable recipients of the funds. Funding could be used by the subrecipients in ways that are incompatible with program goals and compliance requirements. Repeat finding: Yes. Recommendation: We recommend that the Organization implements policies and procedures to perform subrecipient monitoring and that monitoring is formally documented and approved. Views of responsible officials: There is no disagreement with the audit finding.

Criteria or specific requirement: Uniform Guidance § 200.430(g) Standards for Documentation of Personal Expenses Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: 11 of the 26 payroll transactions samples were improperly calculated. CLA and the Organization could not recalculate the amount charged to the grant either due to error or lack of documentation. Questioned costs: Undeterminable. Context: 11 of the 26 payroll transactions samples were improperly calculated. CLA and the Organization could not recalculate the amount charged to the grant either due to error or lack of documentation. Cause: Policies and procedures were not in place to properly calculate allocation of wages and salaries charged to the grant. Effect: The failure to properly calculate allocation of wages and salaries charged to the grant may lead to unsupported personnel costs being charged to federal awards, potentially resulting in questioned costs, compliance findings, repayment of federal funds. Repeat finding: No. Recommendation: We recommend that the Organization implements policies and procedures to ensure appropriate allocation calculation is used and retains support for calculation. Views of responsible officials: There is no disagreement with the audit finding.

Criteria or specific requirement: Uniform Guidance § 200.430(g) Standards for Documentation of Personal Expenses: Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: 2 out of the 26 payroll transaction sampled did not have support for an employees pay rate. Questioned costs: $403. Context: 2 out of the 26 payroll transaction sampled did not have support for an employees pay rate. Cause: Policies and procedures were not in place to ensure all pay rate change letters were retained. Effect: The failure to retain pay rate change letters may lead to unsupported personnel costs being charged to federal awards, potentially resulting in questioned costs, compliance findings, repayment of federal funds. Repeat finding: No. Recommendation: We recommend that the Organization implement policies and procedures to ensure all pay rate change letters or forms are retained in personnel file. Views of responsible officials: There is no disagreement with the audit finding.

Criteria or specific requirement: 2 CFR Part 200, Appendix IV, Appendix IV to Part 200-Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Nonprofit Organizations requires compliance and proper calculation of indirect costs. Condition: 1 out of 5 samples was incorrectly calculated. Questioned costs: $1,800. Context: During our testing of indirect cost 1 out of 5 samples was incorrectly calculated. More specifically the amount on the subrecipient payments was incorrectly calculated. Cause: Policies and procedures are not in place to ensure proper calculation of indirect cost. Effect: Incorrect indirect cost charged to the grant. Repeat finding: Yes. Recommendation: We recommend the Organization create proper policies and procedures to ensure indirect cost is properly calculated and tracked. Views of responsible officials: There is no disagreement with the audit finding.