Audit 5193

FY End

2023-06-30

Total Expended

$7.93M

Findings

4

Programs

2

Organization: Reading Partners (CA)

Year: 2023 Accepted: 2023-12-04

Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
3172	2023-001	Material Weakness	-	I
3173	2023-002	Material Weakness	-	B
579614	2023-001	Material Weakness	-	I
579615	2023-002	Material Weakness	-	B

ALN	Program	Spent	Major	Findings
84.411	Investing in Innovation (i3) Fund	$943,147	Yes	2
94.006	Americorps	$29,082	Yes	0

Contacts

Name	Title	Type
EFBDBYZ4AAS7	Rosa Gutierrez	Auditee
9177165577	Kevin O'Connell	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Assistance listing numbers and pass-through entity identification numbers are presented where available De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Reading Partners under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), 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 Reading Partners, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Reading Partners.

Finding Details

Finding 2023-001

Condition: During the audit, we noted that a procurement policy meeting the minimum requirements under 2 CFR 200.320 was not in place at the Organization. Criteria: The Organization should have and use documented procurement procedures, consistent with the standards for any method of procurement used for the acquisition of property or services required under a Federal or sub-award. Cause: The Organization received a new grant in 2021 and was therefore required to have a procurement policy in place meeting the minimum standards under 2 CFR 200.320. The Organization was unaware of the requirement and did not implement a policy. Effect: Due to the condition above noted, the Organization did not follow procurement standards under 2 CFR 200.320 when acquiring services. However, most costs associated with the major program did not require the acquisition of outside services. Recommendation: The Organization should implement a procurement policy that meets the standards requirement under CFR 200.320 and ensure that all relevant personnel are aware of and follow the requirements in place.

Finding 2023-002

Condition: During the audit, we noted that there was no documentation of approval of the percentage of payroll costs that was being allocated to the federal grant. Cause: The Organization received a new grant in 2021 and was therefore required to have physical sign off for the approval of timecards that allocated time to the grant. Criteria: The Organization have a documented process of review and approval of timecards to ensure that the payroll charged to the federal grant is accurate. Effect: Due to the condition noted above, the Organization charged payroll costs to the grant at or below the approved budget. While cost principles allow for budgeted payroll costs to be charged to grants at interim reporting periods, actual payroll costs incurred must be charged to close out a grant. The Organization does not have sufficient controls in place to document the review and approval of actual payroll costs charged to the program. Recommendation: The Organization should implement a process to document the review and approval of actual payroll costs charged to its federal grants.

Finding 2023-001

Condition: During the audit, we noted that a procurement policy meeting the minimum requirements under 2 CFR 200.320 was not in place at the Organization. Criteria: The Organization should have and use documented procurement procedures, consistent with the standards for any method of procurement used for the acquisition of property or services required under a Federal or sub-award. Cause: The Organization received a new grant in 2021 and was therefore required to have a procurement policy in place meeting the minimum standards under 2 CFR 200.320. The Organization was unaware of the requirement and did not implement a policy. Effect: Due to the condition above noted, the Organization did not follow procurement standards under 2 CFR 200.320 when acquiring services. However, most costs associated with the major program did not require the acquisition of outside services. Recommendation: The Organization should implement a procurement policy that meets the standards requirement under CFR 200.320 and ensure that all relevant personnel are aware of and follow the requirements in place.

Finding 2023-002

Condition: During the audit, we noted that there was no documentation of approval of the percentage of payroll costs that was being allocated to the federal grant. Cause: The Organization received a new grant in 2021 and was therefore required to have physical sign off for the approval of timecards that allocated time to the grant. Criteria: The Organization have a documented process of review and approval of timecards to ensure that the payroll charged to the federal grant is accurate. Effect: Due to the condition noted above, the Organization charged payroll costs to the grant at or below the approved budget. While cost principles allow for budgeted payroll costs to be charged to grants at interim reporting periods, actual payroll costs incurred must be charged to close out a grant. The Organization does not have sufficient controls in place to document the review and approval of actual payroll costs charged to the program. Recommendation: The Organization should implement a process to document the review and approval of actual payroll costs charged to its federal grants.