Audit 48064

FY End
2022-06-30
Total Expended
$7.04M
Findings
6
Programs
9
Year: 2022 Accepted: 2023-03-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
51054 2022-101 Significant Deficiency - A
51055 2022-102 Significant Deficiency - A
51056 2022-103 Significant Deficiency - L
627496 2022-101 Significant Deficiency - A
627497 2022-102 Significant Deficiency - A
627498 2022-103 Significant Deficiency - L

Contacts

Name Title Type
C14AEEQJDN26 Bill Bridgeman Auditee
6022545611 Robert N Snyder Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal grantactivity of Greater Phoenix Urban League, Inc. (the Organization). The information in thisschedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance).NOTE 2 Summary of Significant Accounting PoliciesExpenditures reported on the schedule are reported on the accrual basis of accounting. Suchexpenditures 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.Therefore, some amounts presented in this schedule may differ from amounts presented in,or used in the preparation of, the financial statements.NOTE 3 Federal Assistance Listing NumbersThe program titles and Assistance Listing numbers were obtained from the federal or passthroughgrantor or the 2022 Federal Assistance Listings.NOTE 4 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 72609; July 1, 2021 through June 30, 2022 Pass-through grantor: City of Phoenix Compliance Requirements: Allowable Costs/Cost Principles Questioned Costs: $82,225 Criteria: The Pass-through Grantor, the City of Phoenix, requires that the Organization provide a 20% match of the federal funding. Condition: During fiscal year 2022, the total federal amounts reported for the Head Start program was $6,788,623, which would require a $1,357,725 match based on 20%. Greater Phoenix Urban League was able to document a match of $1,275,500, a shortfall of $82,225. Cause and Effect: Greater Phoenix Urban League did not adequately monitor the required match during the year, resulting in a reported match that was less than the required amount. Auditors? Recommendations: Each quarterly report submitted to the granting agency should be analyzed to determine if the organization is meeting the required match.
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 72609; July 1, 2021 through June 30, 2022 Pass-through grantor: City of Phoenix Compliance Requirements: Allowable Costs/Cost Principles Questioned Costs: $46,107 Criteria: The Uniform Guidance requires that for charges benefiting more than one function, such as finance consultants, systems and controls should be established to help ensure that only actual costs are allocated to the Head Start program. Condition: During fiscal year 2022 the organization incurred $69,980 of consultant costs relating to the outsourced CFO. Of this total, $46,107 was billed to the Head Start program based on allocations indicated on the consultant?s invoices. However, since the outsourced consultant functions similarly to an employee, costs allocated to Head Start should be supported by detailed time reports. During a financial review performed by the grantor it was also determined that Greater Phoenix Urban League did not have proper procurement documentation relating to the sole source procurement of the outsourced CFO. Cause and Effect: Greater Phoenix Urban League determined subsequent to fiscal year end that the costs should not have been charged to the Head Start program and reimbursed the grantor $46,107 in March 2023. Auditors? Recommendations: Administrative costs charged directly to the program should be specifically allowed by the grantor and supported by detailed time reports before allocating costs to the federal program.
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 72609; July 1, 2021 through June 30, 2022 Pass-through grantor: City of Phoenix Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The quarterly reports submitted to the City of Phoenix should agree to the expenditures charged and billed during the reporting period. Condition: The 4th Quarter report of expenditures submitted to the City of Phoenix indicated total Head Start expenditures of $6,650,659. Total costs charged to the Head Start program for which reimbursement requests were made during fiscal year 2022 was $$6,788,623. Cause and Effect: The quarterly reports submitted to the City of Phoenix are City provided work sheets that are difficult to modify to correct for adjustments during the year. As a result, the sum of the quarterly reports included in the 4th quarter report did not agree to the final billed expenditures. Auditors? Recommendations: Greater Phoenix Urban League should work with the City of Phoenix to develop a method for making corrections and appropriately updating quarterly reports.
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 72609; July 1, 2021 through June 30, 2022 Pass-through grantor: City of Phoenix Compliance Requirements: Allowable Costs/Cost Principles Questioned Costs: $82,225 Criteria: The Pass-through Grantor, the City of Phoenix, requires that the Organization provide a 20% match of the federal funding. Condition: During fiscal year 2022, the total federal amounts reported for the Head Start program was $6,788,623, which would require a $1,357,725 match based on 20%. Greater Phoenix Urban League was able to document a match of $1,275,500, a shortfall of $82,225. Cause and Effect: Greater Phoenix Urban League did not adequately monitor the required match during the year, resulting in a reported match that was less than the required amount. Auditors? Recommendations: Each quarterly report submitted to the granting agency should be analyzed to determine if the organization is meeting the required match.
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 72609; July 1, 2021 through June 30, 2022 Pass-through grantor: City of Phoenix Compliance Requirements: Allowable Costs/Cost Principles Questioned Costs: $46,107 Criteria: The Uniform Guidance requires that for charges benefiting more than one function, such as finance consultants, systems and controls should be established to help ensure that only actual costs are allocated to the Head Start program. Condition: During fiscal year 2022 the organization incurred $69,980 of consultant costs relating to the outsourced CFO. Of this total, $46,107 was billed to the Head Start program based on allocations indicated on the consultant?s invoices. However, since the outsourced consultant functions similarly to an employee, costs allocated to Head Start should be supported by detailed time reports. During a financial review performed by the grantor it was also determined that Greater Phoenix Urban League did not have proper procurement documentation relating to the sole source procurement of the outsourced CFO. Cause and Effect: Greater Phoenix Urban League determined subsequent to fiscal year end that the costs should not have been charged to the Head Start program and reimbursed the grantor $46,107 in March 2023. Auditors? Recommendations: Administrative costs charged directly to the program should be specifically allowed by the grantor and supported by detailed time reports before allocating costs to the federal program.
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 72609; July 1, 2021 through June 30, 2022 Pass-through grantor: City of Phoenix Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The quarterly reports submitted to the City of Phoenix should agree to the expenditures charged and billed during the reporting period. Condition: The 4th Quarter report of expenditures submitted to the City of Phoenix indicated total Head Start expenditures of $6,650,659. Total costs charged to the Head Start program for which reimbursement requests were made during fiscal year 2022 was $$6,788,623. Cause and Effect: The quarterly reports submitted to the City of Phoenix are City provided work sheets that are difficult to modify to correct for adjustments during the year. As a result, the sum of the quarterly reports included in the 4th quarter report did not agree to the final billed expenditures. Auditors? Recommendations: Greater Phoenix Urban League should work with the City of Phoenix to develop a method for making corrections and appropriately updating quarterly reports.