Audit 49210

FY End
2022-06-30
Total Expended
$3.73M
Findings
10
Programs
19
Organization: Community Chest, Inc. (NV)
Year: 2022 Accepted: 2023-02-16
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
44555 2022-005 Material Weakness - G
44556 2022-006 Significant Deficiency - B
44557 2022-006 Significant Deficiency - B
44558 2022-006 Significant Deficiency - B
44559 2022-006 Significant Deficiency - B
620997 2022-005 Material Weakness - G
620998 2022-006 Significant Deficiency - B
620999 2022-006 Significant Deficiency - B
621000 2022-006 Significant Deficiency - B
621001 2022-006 Significant Deficiency - B

Contacts

Name Title Type
ZKA1WLQ2YDX9 Erik Schoen Auditee
7758479311 Beth Farley Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting, except for subrecipient expenditures, which are recorded on the cash basis. Such expenditures 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Community Chest, Inc. (Organization) under programs of the federal government for the period ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Community Chest, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Community Chest, Inc.

Finding Details

2022-005: U.S. Department of Justice, State of Nevada Division of Child and Family Services 16.575 Crime Victim Assistance Matching, Level of Effort and Earmarking and Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance Grant Award Number: 16575-19-010 Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Matching, Level of Effort and Earmarking, and Audit Requirements for Federal Awards (Uniform Guidance) provides that amounts for matching but be verifiable, allowed under general cost principles, determined in accordance with generally accepted accounting principles and reported on the grant reports. Condition: Amounts for match was not properly reported on the financial report, in addition supporting documentation was not retained for all match and certain match recorded in accordance with generally accepted accounting principles Cause: Community Chest, Inc. (the Organization) did not have adequate internal controls to ensure that the report included match, was documented and recorded correctly. Effect: The Organization could not meet match requirements. Questioned Costs: $20,000 of in-kind rent was incorrectly included in the supporting documentation provided to the grantor for match. However, there was unreported inkind rent at other locations, which was not included and was in excess of the $20,000 included. As a result, there are no questioned costs for match. Context/sampling: A nonstatistical sample was not utilized, total match was compared to the grant report for the period July 1, 2020 to June 30, 2021 and each match item was tested. Report Finding from Prior Year(s): No. Recommendation: We recommend Community Chest, Inc. enhance the internal controls over reporting, documenting and recording match. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.
2022-006: U.S. Department of Labor, Nevadaworks, WIOA Cluster: 17.259 WIA Youth Activities, 17.278 WIOA Dislocated Worker Formula Grants and 17.258 WIA Adult Program Grants U.S. Department of Justice, State of Nevada Division of Child and Family Services 16.575 Crime Victim Assistance Allowable Costs/Costs Principles Significant Deficiency in Internal Control Over Compliance Grant Award Number: Affects all grants awards included under the WIOA cluster including CFDA 17.259, 17.278 and 17.258 and Crime Victim Assistance CFDA 16.575. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) provides that amounts charged to Federal programs must be for allowable costs. To be allowable under Federal awards, costs must be adequately documented and supported. Condition: Community Chest, Inc. does have an internal control system to properly differentiate between federal and non-federal expenditures, however certain immaterial amounts were not properly classified within the system in accordance with their internal control system. Cause: Community Chest, Inc. did not have adequate internal controls to ensure each federal grant was properly closed out within the accounting system. Effect: The Organization could incorrectly report federal expenditures on the schedule of federal expenditures. Questioned Costs: None reported. Context/sampling: A nonstatistical sample was not utilized, the federal expenditures reimbursed were compared to total expenditures classified to the grant within the accounting system. Report Finding from Prior Year(s): No. Recommendation: We recommend Community Chest, Inc. enhance the internal controls over grant close out within the accounting system. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.
2022-006: U.S. Department of Labor, Nevadaworks, WIOA Cluster: 17.259 WIA Youth Activities, 17.278 WIOA Dislocated Worker Formula Grants and 17.258 WIA Adult Program Grants U.S. Department of Justice, State of Nevada Division of Child and Family Services 16.575 Crime Victim Assistance Allowable Costs/Costs Principles Significant Deficiency in Internal Control Over Compliance Grant Award Number: Affects all grants awards included under the WIOA cluster including CFDA 17.259, 17.278 and 17.258 and Crime Victim Assistance CFDA 16.575. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) provides that amounts charged to Federal programs must be for allowable costs. To be allowable under Federal awards, costs must be adequately documented and supported. Condition: Community Chest, Inc. does have an internal control system to properly differentiate between federal and non-federal expenditures, however certain immaterial amounts were not properly classified within the system in accordance with their internal control system. Cause: Community Chest, Inc. did not have adequate internal controls to ensure each federal grant was properly closed out within the accounting system. Effect: The Organization could incorrectly report federal expenditures on the schedule of federal expenditures. Questioned Costs: None reported. Context/sampling: A nonstatistical sample was not utilized, the federal expenditures reimbursed were compared to total expenditures classified to the grant within the accounting system. Report Finding from Prior Year(s): No. Recommendation: We recommend Community Chest, Inc. enhance the internal controls over grant close out within the accounting system. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.
2022-006: U.S. Department of Labor, Nevadaworks, WIOA Cluster: 17.259 WIA Youth Activities, 17.278 WIOA Dislocated Worker Formula Grants and 17.258 WIA Adult Program Grants U.S. Department of Justice, State of Nevada Division of Child and Family Services 16.575 Crime Victim Assistance Allowable Costs/Costs Principles Significant Deficiency in Internal Control Over Compliance Grant Award Number: Affects all grants awards included under the WIOA cluster including CFDA 17.259, 17.278 and 17.258 and Crime Victim Assistance CFDA 16.575. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) provides that amounts charged to Federal programs must be for allowable costs. To be allowable under Federal awards, costs must be adequately documented and supported. Condition: Community Chest, Inc. does have an internal control system to properly differentiate between federal and non-federal expenditures, however certain immaterial amounts were not properly classified within the system in accordance with their internal control system. Cause: Community Chest, Inc. did not have adequate internal controls to ensure each federal grant was properly closed out within the accounting system. Effect: The Organization could incorrectly report federal expenditures on the schedule of federal expenditures. Questioned Costs: None reported. Context/sampling: A nonstatistical sample was not utilized, the federal expenditures reimbursed were compared to total expenditures classified to the grant within the accounting system. Report Finding from Prior Year(s): No. Recommendation: We recommend Community Chest, Inc. enhance the internal controls over grant close out within the accounting system. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.
2022-006: U.S. Department of Labor, Nevadaworks, WIOA Cluster: 17.259 WIA Youth Activities, 17.278 WIOA Dislocated Worker Formula Grants and 17.258 WIA Adult Program Grants U.S. Department of Justice, State of Nevada Division of Child and Family Services 16.575 Crime Victim Assistance Allowable Costs/Costs Principles Significant Deficiency in Internal Control Over Compliance Grant Award Number: Affects all grants awards included under the WIOA cluster including CFDA 17.259, 17.278 and 17.258 and Crime Victim Assistance CFDA 16.575. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) provides that amounts charged to Federal programs must be for allowable costs. To be allowable under Federal awards, costs must be adequately documented and supported. Condition: Community Chest, Inc. does have an internal control system to properly differentiate between federal and non-federal expenditures, however certain immaterial amounts were not properly classified within the system in accordance with their internal control system. Cause: Community Chest, Inc. did not have adequate internal controls to ensure each federal grant was properly closed out within the accounting system. Effect: The Organization could incorrectly report federal expenditures on the schedule of federal expenditures. Questioned Costs: None reported. Context/sampling: A nonstatistical sample was not utilized, the federal expenditures reimbursed were compared to total expenditures classified to the grant within the accounting system. Report Finding from Prior Year(s): No. Recommendation: We recommend Community Chest, Inc. enhance the internal controls over grant close out within the accounting system. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.
2022-005: U.S. Department of Justice, State of Nevada Division of Child and Family Services 16.575 Crime Victim Assistance Matching, Level of Effort and Earmarking and Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance Grant Award Number: 16575-19-010 Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Matching, Level of Effort and Earmarking, and Audit Requirements for Federal Awards (Uniform Guidance) provides that amounts for matching but be verifiable, allowed under general cost principles, determined in accordance with generally accepted accounting principles and reported on the grant reports. Condition: Amounts for match was not properly reported on the financial report, in addition supporting documentation was not retained for all match and certain match recorded in accordance with generally accepted accounting principles Cause: Community Chest, Inc. (the Organization) did not have adequate internal controls to ensure that the report included match, was documented and recorded correctly. Effect: The Organization could not meet match requirements. Questioned Costs: $20,000 of in-kind rent was incorrectly included in the supporting documentation provided to the grantor for match. However, there was unreported inkind rent at other locations, which was not included and was in excess of the $20,000 included. As a result, there are no questioned costs for match. Context/sampling: A nonstatistical sample was not utilized, total match was compared to the grant report for the period July 1, 2020 to June 30, 2021 and each match item was tested. Report Finding from Prior Year(s): No. Recommendation: We recommend Community Chest, Inc. enhance the internal controls over reporting, documenting and recording match. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.
2022-006: U.S. Department of Labor, Nevadaworks, WIOA Cluster: 17.259 WIA Youth Activities, 17.278 WIOA Dislocated Worker Formula Grants and 17.258 WIA Adult Program Grants U.S. Department of Justice, State of Nevada Division of Child and Family Services 16.575 Crime Victim Assistance Allowable Costs/Costs Principles Significant Deficiency in Internal Control Over Compliance Grant Award Number: Affects all grants awards included under the WIOA cluster including CFDA 17.259, 17.278 and 17.258 and Crime Victim Assistance CFDA 16.575. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) provides that amounts charged to Federal programs must be for allowable costs. To be allowable under Federal awards, costs must be adequately documented and supported. Condition: Community Chest, Inc. does have an internal control system to properly differentiate between federal and non-federal expenditures, however certain immaterial amounts were not properly classified within the system in accordance with their internal control system. Cause: Community Chest, Inc. did not have adequate internal controls to ensure each federal grant was properly closed out within the accounting system. Effect: The Organization could incorrectly report federal expenditures on the schedule of federal expenditures. Questioned Costs: None reported. Context/sampling: A nonstatistical sample was not utilized, the federal expenditures reimbursed were compared to total expenditures classified to the grant within the accounting system. Report Finding from Prior Year(s): No. Recommendation: We recommend Community Chest, Inc. enhance the internal controls over grant close out within the accounting system. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.
2022-006: U.S. Department of Labor, Nevadaworks, WIOA Cluster: 17.259 WIA Youth Activities, 17.278 WIOA Dislocated Worker Formula Grants and 17.258 WIA Adult Program Grants U.S. Department of Justice, State of Nevada Division of Child and Family Services 16.575 Crime Victim Assistance Allowable Costs/Costs Principles Significant Deficiency in Internal Control Over Compliance Grant Award Number: Affects all grants awards included under the WIOA cluster including CFDA 17.259, 17.278 and 17.258 and Crime Victim Assistance CFDA 16.575. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) provides that amounts charged to Federal programs must be for allowable costs. To be allowable under Federal awards, costs must be adequately documented and supported. Condition: Community Chest, Inc. does have an internal control system to properly differentiate between federal and non-federal expenditures, however certain immaterial amounts were not properly classified within the system in accordance with their internal control system. Cause: Community Chest, Inc. did not have adequate internal controls to ensure each federal grant was properly closed out within the accounting system. Effect: The Organization could incorrectly report federal expenditures on the schedule of federal expenditures. Questioned Costs: None reported. Context/sampling: A nonstatistical sample was not utilized, the federal expenditures reimbursed were compared to total expenditures classified to the grant within the accounting system. Report Finding from Prior Year(s): No. Recommendation: We recommend Community Chest, Inc. enhance the internal controls over grant close out within the accounting system. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.
2022-006: U.S. Department of Labor, Nevadaworks, WIOA Cluster: 17.259 WIA Youth Activities, 17.278 WIOA Dislocated Worker Formula Grants and 17.258 WIA Adult Program Grants U.S. Department of Justice, State of Nevada Division of Child and Family Services 16.575 Crime Victim Assistance Allowable Costs/Costs Principles Significant Deficiency in Internal Control Over Compliance Grant Award Number: Affects all grants awards included under the WIOA cluster including CFDA 17.259, 17.278 and 17.258 and Crime Victim Assistance CFDA 16.575. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) provides that amounts charged to Federal programs must be for allowable costs. To be allowable under Federal awards, costs must be adequately documented and supported. Condition: Community Chest, Inc. does have an internal control system to properly differentiate between federal and non-federal expenditures, however certain immaterial amounts were not properly classified within the system in accordance with their internal control system. Cause: Community Chest, Inc. did not have adequate internal controls to ensure each federal grant was properly closed out within the accounting system. Effect: The Organization could incorrectly report federal expenditures on the schedule of federal expenditures. Questioned Costs: None reported. Context/sampling: A nonstatistical sample was not utilized, the federal expenditures reimbursed were compared to total expenditures classified to the grant within the accounting system. Report Finding from Prior Year(s): No. Recommendation: We recommend Community Chest, Inc. enhance the internal controls over grant close out within the accounting system. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.
2022-006: U.S. Department of Labor, Nevadaworks, WIOA Cluster: 17.259 WIA Youth Activities, 17.278 WIOA Dislocated Worker Formula Grants and 17.258 WIA Adult Program Grants U.S. Department of Justice, State of Nevada Division of Child and Family Services 16.575 Crime Victim Assistance Allowable Costs/Costs Principles Significant Deficiency in Internal Control Over Compliance Grant Award Number: Affects all grants awards included under the WIOA cluster including CFDA 17.259, 17.278 and 17.258 and Crime Victim Assistance CFDA 16.575. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) provides that amounts charged to Federal programs must be for allowable costs. To be allowable under Federal awards, costs must be adequately documented and supported. Condition: Community Chest, Inc. does have an internal control system to properly differentiate between federal and non-federal expenditures, however certain immaterial amounts were not properly classified within the system in accordance with their internal control system. Cause: Community Chest, Inc. did not have adequate internal controls to ensure each federal grant was properly closed out within the accounting system. Effect: The Organization could incorrectly report federal expenditures on the schedule of federal expenditures. Questioned Costs: None reported. Context/sampling: A nonstatistical sample was not utilized, the federal expenditures reimbursed were compared to total expenditures classified to the grant within the accounting system. Report Finding from Prior Year(s): No. Recommendation: We recommend Community Chest, Inc. enhance the internal controls over grant close out within the accounting system. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.