Audit 49622

FY End
2022-09-30
Total Expended
$1.26M
Findings
20
Programs
5
Year: 2022 Accepted: 2023-04-05

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
60994 2022-003 - - G
60995 2022-004 Material Weakness - A
60996 2022-005 Significant Deficiency - A
60997 2022-003 - - G
60998 2022-004 Material Weakness - A
60999 2022-005 Significant Deficiency - A
61000 2022-004 Material Weakness - A
61001 2022-005 Significant Deficiency - A
61002 2022-004 Material Weakness - A
61003 2022-005 Significant Deficiency - A
637436 2022-003 - - G
637437 2022-004 Material Weakness - A
637438 2022-005 Significant Deficiency - A
637439 2022-003 - - G
637440 2022-004 Material Weakness - A
637441 2022-005 Significant Deficiency - A
637442 2022-004 Material Weakness - A
637443 2022-005 Significant Deficiency - A
637444 2022-004 Material Weakness - A
637445 2022-005 Significant Deficiency - A

Programs

Contacts

Name Title Type
Q14UJLVBLT98 Haji Adan Auditee
3152144480 Jennifer Kiblin, CPA Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients Accounting Policies: The information is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: Y Rate Explanation: The Organization used the 10% de minimis election. The Organization did not provide any funding to subrecipients during the year ended September 30, 2022.

Finding Details

Criteria - The grant agreement contains a matching requirement for the Organization of $10,000. Condition - The Organization did not meet this requirement for the year ended September 30, 2022. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not in compliance with Uniform Guidance. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization tracks the matching requirement of this grant agreement to ensure they meet the requirement. Management?s Response - (a) Comments on the finding and recommendation: Duly noted. (b) Actions Taken: The finance team is working on the financial requirements of the grants and in addition to that we are adding monthly grant reports to the pipeline for the finance department. The reports are going to be designed in a way to show the approved budget for all the lines, their relevant expenditures up to the month ended and remaining balances, all included with required matches approved in the individual grant budgets. (c) Anticipated Completion Date: May 31, 2023.
Criteria - Internal controls require that the Organization must receive approval for purchases made. Condition - The Organization?s current internal control process does not include an approval process by the Board of Directors for purchases made by the Executive Director. The Executive Director made purchases with grant funding from both programs tested without an authorization procedure in place as is done for other employees. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization receive approval from the Board of Directors for any expenditures made by the Executive Director. Management?s Response - (a) Comments on the finding and recommendation: Approval process has been developed subsequent to September 30, 2022. (b) Actions Taken: We are working with an HR consultant to update our staff handbook, update payroll processing system, review, and update time management, and reassure all the HR procedures and guidelines are up to date and meet the state and federal requirements. We are also looking for some resources and non-profit financial management professionals to update our administrative and financial manuals and guidelines to put more controls in place to mitigate all financial risks. (c) Anticipated Completion Date: July 31, 2023.
Criteria - Internal controls require the Organization to make all its personnel service payments through the payroll system. Condition - Payments were made to employees for time worked and recorded but not entered in the payroll system. Short-term employees received payments outside of the payroll system for their contracted period of employment. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develops its internal control policies to pay all employees through the payroll system. The Organization should work to improve the review and approval process to properly differentiate between employees and subcontractors and to ensure all employees are paid through the payroll system. Management?s Response - (a) Comments on the finding and recommendation: Duly noted. (b) Actions Taken: As mentioned above for audit finding 2022-004, we are going to have some specific guidance regarding this process once the HR consultant completes his project. We have already started putting short term contractors in the ADP (payroll system). (c) Anticipated Completion Date: July 31, 2023.
Criteria - The grant agreement contains a matching requirement for the Organization of $10,000. Condition - The Organization did not meet this requirement for the year ended September 30, 2022. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not in compliance with Uniform Guidance. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization tracks the matching requirement of this grant agreement to ensure they meet the requirement. Management?s Response - (a) Comments on the finding and recommendation: Duly noted. (b) Actions Taken: The finance team is working on the financial requirements of the grants and in addition to that we are adding monthly grant reports to the pipeline for the finance department. The reports are going to be designed in a way to show the approved budget for all the lines, their relevant expenditures up to the month ended and remaining balances, all included with required matches approved in the individual grant budgets. (c) Anticipated Completion Date: May 31, 2023.
Criteria - Internal controls require that the Organization must receive approval for purchases made. Condition - The Organization?s current internal control process does not include an approval process by the Board of Directors for purchases made by the Executive Director. The Executive Director made purchases with grant funding from both programs tested without an authorization procedure in place as is done for other employees. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization receive approval from the Board of Directors for any expenditures made by the Executive Director. Management?s Response - (a) Comments on the finding and recommendation: Approval process has been developed subsequent to September 30, 2022. (b) Actions Taken: We are working with an HR consultant to update our staff handbook, update payroll processing system, review, and update time management, and reassure all the HR procedures and guidelines are up to date and meet the state and federal requirements. We are also looking for some resources and non-profit financial management professionals to update our administrative and financial manuals and guidelines to put more controls in place to mitigate all financial risks. (c) Anticipated Completion Date: July 31, 2023.
Criteria - Internal controls require the Organization to make all its personnel service payments through the payroll system. Condition - Payments were made to employees for time worked and recorded but not entered in the payroll system. Short-term employees received payments outside of the payroll system for their contracted period of employment. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develops its internal control policies to pay all employees through the payroll system. The Organization should work to improve the review and approval process to properly differentiate between employees and subcontractors and to ensure all employees are paid through the payroll system. Management?s Response - (a) Comments on the finding and recommendation: Duly noted. (b) Actions Taken: As mentioned above for audit finding 2022-004, we are going to have some specific guidance regarding this process once the HR consultant completes his project. We have already started putting short term contractors in the ADP (payroll system). (c) Anticipated Completion Date: July 31, 2023.
Criteria - Internal controls require that the Organization must receive approval for purchases made. Condition - The Organization?s current internal control process does not include an approval process by the Board of Directors for purchases made by the Executive Director. The Executive Director made purchases with grant funding from both programs tested without an authorization procedure in place as is done for other employees. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization receive approval from the Board of Directors for any expenditures made by the Executive Director. Management?s Response - (a) Comments on the finding and recommendation: Approval process has been developed subsequent to September 30, 2022. (b) Actions Taken: We are working with an HR consultant to update our staff handbook, update payroll processing system, review, and update time management, and reassure all the HR procedures and guidelines are up to date and meet the state and federal requirements. We are also looking for some resources and non-profit financial management professionals to update our administrative and financial manuals and guidelines to put more controls in place to mitigate all financial risks. (c) Anticipated Completion Date: July 31, 2023.
Criteria - Internal controls require the Organization to make all its personnel service payments through the payroll system. Condition - Payments were made to employees for time worked and recorded but not entered in the payroll system. Short-term employees received payments outside of the payroll system for their contracted period of employment. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develops its internal control policies to pay all employees through the payroll system. The Organization should work to improve the review and approval process to properly differentiate between employees and subcontractors and to ensure all employees are paid through the payroll system. Management?s Response - (a) Comments on the finding and recommendation: Duly noted. (b) Actions Taken: As mentioned above for audit finding 2022-004, we are going to have some specific guidance regarding this process once the HR consultant completes his project. We have already started putting short term contractors in the ADP (payroll system). (c) Anticipated Completion Date: July 31, 2023.
Criteria - Internal controls require that the Organization must receive approval for purchases made. Condition - The Organization?s current internal control process does not include an approval process by the Board of Directors for purchases made by the Executive Director. The Executive Director made purchases with grant funding from both programs tested without an authorization procedure in place as is done for other employees. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization receive approval from the Board of Directors for any expenditures made by the Executive Director. Management?s Response - (a) Comments on the finding and recommendation: Approval process has been developed subsequent to September 30, 2022. (b) Actions Taken: We are working with an HR consultant to update our staff handbook, update payroll processing system, review, and update time management, and reassure all the HR procedures and guidelines are up to date and meet the state and federal requirements. We are also looking for some resources and non-profit financial management professionals to update our administrative and financial manuals and guidelines to put more controls in place to mitigate all financial risks. (c) Anticipated Completion Date: July 31, 2023.
Criteria - Internal controls require the Organization to make all its personnel service payments through the payroll system. Condition - Payments were made to employees for time worked and recorded but not entered in the payroll system. Short-term employees received payments outside of the payroll system for their contracted period of employment. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develops its internal control policies to pay all employees through the payroll system. The Organization should work to improve the review and approval process to properly differentiate between employees and subcontractors and to ensure all employees are paid through the payroll system. Management?s Response - (a) Comments on the finding and recommendation: Duly noted. (b) Actions Taken: As mentioned above for audit finding 2022-004, we are going to have some specific guidance regarding this process once the HR consultant completes his project. We have already started putting short term contractors in the ADP (payroll system). (c) Anticipated Completion Date: July 31, 2023.
Criteria - The grant agreement contains a matching requirement for the Organization of $10,000. Condition - The Organization did not meet this requirement for the year ended September 30, 2022. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not in compliance with Uniform Guidance. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization tracks the matching requirement of this grant agreement to ensure they meet the requirement. Management?s Response - (a) Comments on the finding and recommendation: Duly noted. (b) Actions Taken: The finance team is working on the financial requirements of the grants and in addition to that we are adding monthly grant reports to the pipeline for the finance department. The reports are going to be designed in a way to show the approved budget for all the lines, their relevant expenditures up to the month ended and remaining balances, all included with required matches approved in the individual grant budgets. (c) Anticipated Completion Date: May 31, 2023.
Criteria - Internal controls require that the Organization must receive approval for purchases made. Condition - The Organization?s current internal control process does not include an approval process by the Board of Directors for purchases made by the Executive Director. The Executive Director made purchases with grant funding from both programs tested without an authorization procedure in place as is done for other employees. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization receive approval from the Board of Directors for any expenditures made by the Executive Director. Management?s Response - (a) Comments on the finding and recommendation: Approval process has been developed subsequent to September 30, 2022. (b) Actions Taken: We are working with an HR consultant to update our staff handbook, update payroll processing system, review, and update time management, and reassure all the HR procedures and guidelines are up to date and meet the state and federal requirements. We are also looking for some resources and non-profit financial management professionals to update our administrative and financial manuals and guidelines to put more controls in place to mitigate all financial risks. (c) Anticipated Completion Date: July 31, 2023.
Criteria - Internal controls require the Organization to make all its personnel service payments through the payroll system. Condition - Payments were made to employees for time worked and recorded but not entered in the payroll system. Short-term employees received payments outside of the payroll system for their contracted period of employment. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develops its internal control policies to pay all employees through the payroll system. The Organization should work to improve the review and approval process to properly differentiate between employees and subcontractors and to ensure all employees are paid through the payroll system. Management?s Response - (a) Comments on the finding and recommendation: Duly noted. (b) Actions Taken: As mentioned above for audit finding 2022-004, we are going to have some specific guidance regarding this process once the HR consultant completes his project. We have already started putting short term contractors in the ADP (payroll system). (c) Anticipated Completion Date: July 31, 2023.
Criteria - The grant agreement contains a matching requirement for the Organization of $10,000. Condition - The Organization did not meet this requirement for the year ended September 30, 2022. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not in compliance with Uniform Guidance. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization tracks the matching requirement of this grant agreement to ensure they meet the requirement. Management?s Response - (a) Comments on the finding and recommendation: Duly noted. (b) Actions Taken: The finance team is working on the financial requirements of the grants and in addition to that we are adding monthly grant reports to the pipeline for the finance department. The reports are going to be designed in a way to show the approved budget for all the lines, their relevant expenditures up to the month ended and remaining balances, all included with required matches approved in the individual grant budgets. (c) Anticipated Completion Date: May 31, 2023.
Criteria - Internal controls require that the Organization must receive approval for purchases made. Condition - The Organization?s current internal control process does not include an approval process by the Board of Directors for purchases made by the Executive Director. The Executive Director made purchases with grant funding from both programs tested without an authorization procedure in place as is done for other employees. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization receive approval from the Board of Directors for any expenditures made by the Executive Director. Management?s Response - (a) Comments on the finding and recommendation: Approval process has been developed subsequent to September 30, 2022. (b) Actions Taken: We are working with an HR consultant to update our staff handbook, update payroll processing system, review, and update time management, and reassure all the HR procedures and guidelines are up to date and meet the state and federal requirements. We are also looking for some resources and non-profit financial management professionals to update our administrative and financial manuals and guidelines to put more controls in place to mitigate all financial risks. (c) Anticipated Completion Date: July 31, 2023.
Criteria - Internal controls require the Organization to make all its personnel service payments through the payroll system. Condition - Payments were made to employees for time worked and recorded but not entered in the payroll system. Short-term employees received payments outside of the payroll system for their contracted period of employment. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develops its internal control policies to pay all employees through the payroll system. The Organization should work to improve the review and approval process to properly differentiate between employees and subcontractors and to ensure all employees are paid through the payroll system. Management?s Response - (a) Comments on the finding and recommendation: Duly noted. (b) Actions Taken: As mentioned above for audit finding 2022-004, we are going to have some specific guidance regarding this process once the HR consultant completes his project. We have already started putting short term contractors in the ADP (payroll system). (c) Anticipated Completion Date: July 31, 2023.
Criteria - Internal controls require that the Organization must receive approval for purchases made. Condition - The Organization?s current internal control process does not include an approval process by the Board of Directors for purchases made by the Executive Director. The Executive Director made purchases with grant funding from both programs tested without an authorization procedure in place as is done for other employees. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization receive approval from the Board of Directors for any expenditures made by the Executive Director. Management?s Response - (a) Comments on the finding and recommendation: Approval process has been developed subsequent to September 30, 2022. (b) Actions Taken: We are working with an HR consultant to update our staff handbook, update payroll processing system, review, and update time management, and reassure all the HR procedures and guidelines are up to date and meet the state and federal requirements. We are also looking for some resources and non-profit financial management professionals to update our administrative and financial manuals and guidelines to put more controls in place to mitigate all financial risks. (c) Anticipated Completion Date: July 31, 2023.
Criteria - Internal controls require the Organization to make all its personnel service payments through the payroll system. Condition - Payments were made to employees for time worked and recorded but not entered in the payroll system. Short-term employees received payments outside of the payroll system for their contracted period of employment. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develops its internal control policies to pay all employees through the payroll system. The Organization should work to improve the review and approval process to properly differentiate between employees and subcontractors and to ensure all employees are paid through the payroll system. Management?s Response - (a) Comments on the finding and recommendation: Duly noted. (b) Actions Taken: As mentioned above for audit finding 2022-004, we are going to have some specific guidance regarding this process once the HR consultant completes his project. We have already started putting short term contractors in the ADP (payroll system). (c) Anticipated Completion Date: July 31, 2023.
Criteria - Internal controls require that the Organization must receive approval for purchases made. Condition - The Organization?s current internal control process does not include an approval process by the Board of Directors for purchases made by the Executive Director. The Executive Director made purchases with grant funding from both programs tested without an authorization procedure in place as is done for other employees. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develop internal controls in order to ensure that the Organization receive approval from the Board of Directors for any expenditures made by the Executive Director. Management?s Response - (a) Comments on the finding and recommendation: Approval process has been developed subsequent to September 30, 2022. (b) Actions Taken: We are working with an HR consultant to update our staff handbook, update payroll processing system, review, and update time management, and reassure all the HR procedures and guidelines are up to date and meet the state and federal requirements. We are also looking for some resources and non-profit financial management professionals to update our administrative and financial manuals and guidelines to put more controls in place to mitigate all financial risks. (c) Anticipated Completion Date: July 31, 2023.
Criteria - Internal controls require the Organization to make all its personnel service payments through the payroll system. Condition - Payments were made to employees for time worked and recorded but not entered in the payroll system. Short-term employees received payments outside of the payroll system for their contracted period of employment. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develops its internal control policies to pay all employees through the payroll system. The Organization should work to improve the review and approval process to properly differentiate between employees and subcontractors and to ensure all employees are paid through the payroll system. Management?s Response - (a) Comments on the finding and recommendation: Duly noted. (b) Actions Taken: As mentioned above for audit finding 2022-004, we are going to have some specific guidance regarding this process once the HR consultant completes his project. We have already started putting short term contractors in the ADP (payroll system). (c) Anticipated Completion Date: July 31, 2023.