Audit 54373

Finding: 2022-002 ALN and Title: 16.320 ? Services for Trafficking Victims Cluster Name: N/A Federal Agency: U.S Department of Justice FAIN: 2019-VT-BX-K030; 2020-VT-BX-0094 Passthrough Entity: N/A Type of Finding: Significant Deficiency Compliance Requirement: B. Allowable Costs/Cost Principles Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (?Uniform Guidance?) requires 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: Supporting documentation could not be provided for costs that were charged to the program to support the allowability of costs. Cause: The Organization had a change in upper-level management during the year under audit and the Organization did not have adequate internal controls to ensure that through transitions, documents were maintained in a central and contained location. Effect: Unable to discern whether the cost charged to the Federal program was allowable, as well as if the subsequent federal payment was either proper or improper as a result of insufficient or lack of documentation. Questioned Costs: N/A Context: A nonstatistical sample was utilized, the federal expenditures reimbursed were compared to total expenditures classified to the grant within the accounting system. Out of 25 transactions tested for this program, adequate supporting documentation could not be provided for 5 transactions. Recommendation: It is recommended that the Organization implement adequate controls to ensure all disbursements have appropriate supporting documentation and follow a formal authorization policy. Management should provide additional resources to monitor compliance with all policies and procedures. Views of Responsible Officials: Management agrees with this recommendation. See auditee prepared corrective action plan for details.

Finding: 2022-002 ALN and Title: 16.320 ? Services for Trafficking Victims Cluster Name: N/A Federal Agency: U.S Department of Justice FAIN: 2019-VT-BX-K030; 2020-VT-BX-0094 Passthrough Entity: N/A Type of Finding: Significant Deficiency Compliance Requirement: B. Allowable Costs/Cost Principles Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (?Uniform Guidance?) requires 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: Supporting documentation could not be provided for costs that were charged to the program to support the allowability of costs. Cause: The Organization had a change in upper-level management during the year under audit and the Organization did not have adequate internal controls to ensure that through transitions, documents were maintained in a central and contained location. Effect: Unable to discern whether the cost charged to the Federal program was allowable, as well as if the subsequent federal payment was either proper or improper as a result of insufficient or lack of documentation. Questioned Costs: N/A Context: A nonstatistical sample was utilized, the federal expenditures reimbursed were compared to total expenditures classified to the grant within the accounting system. Out of 25 transactions tested for this program, adequate supporting documentation could not be provided for 5 transactions. Recommendation: It is recommended that the Organization implement adequate controls to ensure all disbursements have appropriate supporting documentation and follow a formal authorization policy. Management should provide additional resources to monitor compliance with all policies and procedures. Views of Responsible Officials: Management agrees with this recommendation. See auditee prepared corrective action plan for details.