Audit 46231

2022-001 Allowability Finding Type Immaterial non compliance; significant deficiency in internal controls over compliance Program Names COVID Emergency Rental Assistance (A.L.N. #21.023) Criteria The Uniform Guidance requires the Organization to prepare and maintain documentation supporting the allocation of individual employee wages and benefits that are only partially charged to federal grants due to multiple duties of their multiple duties. Condition During audit testing, payroll charges to the COVID Emergency Rental Assistance (CERA) program were sampled and payroll charges were identified which were not supported by proper documentation. Cause The Organization indicated that time studies had not been performed for all employees partially allocated to the CERA grant. Additionally employee allocations to the programs were revised from the prepared time studies based on visual observations without documenting the reasons for the change or preparing a new time study. This is a repeat of finding #2021-001 from the September 30, 2021 compliance audit,. Effect Due to the lack of supporting documentation, it was not possible to determine if the payroll and related employee benefit expenses allocated to the program were reasonable based on the staff duties and responsibilities. Questioned Costs The sample identified wages and benefits of $28,072 that were not supported by time study documentation. When the sample results were extrapolated to the entire population, the total estimated questioned costs were $111,567 which is .56% of total grant expenses. Recommendation We recommend the Organization adopt policies and procedures to ensure that documentation supporting the allocation of wages expense to federal and state grant programs be maintained for a minimum of five years. We would also recommend that time studies and allocations be reexamined on a periodic basis to properly reflect the true cost of the program. View of Responsible Official "The corporation Board of Directors adopted and implemented the required policies to ensure documentation supporting the allocation of personnel costs to federal and state grant programs be maintained for a minimum of five years. The actual administrative and case management costs charged to the CERA program were within the allowed budget. To ensure an accurate reflection of the true cost of the CERA program, time studies and allocations will be prepared and reexamined at least biannually."

2022-001 Allowability Finding Type Immaterial non compliance; significant deficiency in internal controls over compliance Program Names COVID Emergency Rental Assistance (A.L.N. #21.023) Criteria The Uniform Guidance requires the Organization to prepare and maintain documentation supporting the allocation of individual employee wages and benefits that are only partially charged to federal grants due to multiple duties of their multiple duties. Condition During audit testing, payroll charges to the COVID Emergency Rental Assistance (CERA) program were sampled and payroll charges were identified which were not supported by proper documentation. Cause The Organization indicated that time studies had not been performed for all employees partially allocated to the CERA grant. Additionally employee allocations to the programs were revised from the prepared time studies based on visual observations without documenting the reasons for the change or preparing a new time study. This is a repeat of finding #2021-001 from the September 30, 2021 compliance audit,. Effect Due to the lack of supporting documentation, it was not possible to determine if the payroll and related employee benefit expenses allocated to the program were reasonable based on the staff duties and responsibilities. Questioned Costs The sample identified wages and benefits of $28,072 that were not supported by time study documentation. When the sample results were extrapolated to the entire population, the total estimated questioned costs were $111,567 which is .56% of total grant expenses. Recommendation We recommend the Organization adopt policies and procedures to ensure that documentation supporting the allocation of wages expense to federal and state grant programs be maintained for a minimum of five years. We would also recommend that time studies and allocations be reexamined on a periodic basis to properly reflect the true cost of the program. View of Responsible Official "The corporation Board of Directors adopted and implemented the required policies to ensure documentation supporting the allocation of personnel costs to federal and state grant programs be maintained for a minimum of five years. The actual administrative and case management costs charged to the CERA program were within the allowed budget. To ensure an accurate reflection of the true cost of the CERA program, time studies and allocations will be prepared and reexamined at least biannually."