FAC Explorer

Audit 55329

FY End
2022-12-31
Total Expended
$978,451
Findings
4
Programs
3
Organization: Akron Community Service Center & Urban League, Inc. (OH)
Year: 2022 Accepted: 2023-09-17
Auditor: Sikich LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59907 2022-003 Significant Deficiency - AB
59908 2022-004 Significant Deficiency - L
636349 2022-003 Significant Deficiency - AB
636350 2022-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.558 Temporary Assistance for Needy Families $675,236 Yes 2
93.667 Social Services Block Grant $71,523 - 0
14.218 Community Development Block Grants/entitlement Grants $21,096 - 0

Contacts

Name Title Type
P5N5D81C9PV5 John Baranek Auditee
2345424149 Lisa Denholm Auditor
No contacts on file

Notes to SEFA

Title: SUBRECIPIENTS Accounting Policies: Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Akron Community Service Center and Urban League, Inc. (the Organization) under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of Akron Community Service Center and Urban League, Inc., it is not intended to be and does not present the financial position, changes in net assets, or cash flows of Akron Community Service Center and Urban League, Inc.Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization did not provide federal awards to subrecipients during the year ended December 31, 2022.
Title: NON-CASH ASSISTANCE, LOANS OUTSTANDING, AND INSURANCE Accounting Policies: Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Akron Community Service Center and Urban League, Inc. (the Organization) under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of Akron Community Service Center and Urban League, Inc., it is not intended to be and does not present the financial position, changes in net assets, or cash flows of Akron Community Service Center and Urban League, Inc.Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization did not receive any federal non-cash assistance, federal loans or federal insurance for the year ended December 31, 2022.

Finding Details

Finding 2022-003
Condition: During our review of internal controls over allowable activities and allowable costs/cost principles compliance requirement for the major federal program above, we noted several instances which personnel activity reports used to generate the request for reimbursement were not signed as approved by the employees? direct supervisor. Criteria: Effective internal controls should be established to prevent or detect noncompliance with required compliance requirements over federal awards, including payroll expenditures charged to federal awards. Cause: Procedures are not being consistently applied to review personnel activity reports before preparation of monthly request for reimbursement and submission to grantor. Effect: As a result of the deficiency noted, internal controls over personnel charges to federal programs were deemed to be ineffective to prevent or detect noncompliance with compliance requirements over federal awards. Recommendation: Management should review procedures over approval of personnel activity reports and ensure procedures are being consistently followed including review of all reports by employees? direct supervisor.
Finding 2022-004
Condition: During our audit procedures over compliance requirements, reports submitted to the grantor were not reviewed by an employee separate from the preparer before being submitted. Criteria: Effective internal controls should be established to prevent or detect noncompliance with required compliance requirements over federal awards. Cause: Procedures are not currently in place to require an employee, separate from the report preparer, to review required grant reports prior to submission to the grantor. Effect: As a result of the deficiency noted, our audit procedures identified several reports submitted to the grantor during 2022 that were revised after initial submission due to the grantor?s review identifying certain items that required correction. Recommendations: We recommend internal control procedures be reviewed by management and a secondary review of all submitted reports be performed by an employee, separate from the preparer and knowledgeable of compliance requirements, for completeness and accuracy, including comparing to source documentation and any reconciliations between source data and final reporting.
Finding 2022-003
Condition: During our review of internal controls over allowable activities and allowable costs/cost principles compliance requirement for the major federal program above, we noted several instances which personnel activity reports used to generate the request for reimbursement were not signed as approved by the employees? direct supervisor. Criteria: Effective internal controls should be established to prevent or detect noncompliance with required compliance requirements over federal awards, including payroll expenditures charged to federal awards. Cause: Procedures are not being consistently applied to review personnel activity reports before preparation of monthly request for reimbursement and submission to grantor. Effect: As a result of the deficiency noted, internal controls over personnel charges to federal programs were deemed to be ineffective to prevent or detect noncompliance with compliance requirements over federal awards. Recommendation: Management should review procedures over approval of personnel activity reports and ensure procedures are being consistently followed including review of all reports by employees? direct supervisor.
Finding 2022-004
Condition: During our audit procedures over compliance requirements, reports submitted to the grantor were not reviewed by an employee separate from the preparer before being submitted. Criteria: Effective internal controls should be established to prevent or detect noncompliance with required compliance requirements over federal awards. Cause: Procedures are not currently in place to require an employee, separate from the report preparer, to review required grant reports prior to submission to the grantor. Effect: As a result of the deficiency noted, our audit procedures identified several reports submitted to the grantor during 2022 that were revised after initial submission due to the grantor?s review identifying certain items that required correction. Recommendations: We recommend internal control procedures be reviewed by management and a secondary review of all submitted reports be performed by an employee, separate from the preparer and knowledgeable of compliance requirements, for completeness and accuracy, including comparing to source documentation and any reconciliations between source data and final reporting.