Finding 2022-002 Significant deficiency in internal control over compliance for special tests and provisions. Federal Agency: Corporation for National and Community Service Pass-Through: Office of Financial Management Assistance Listing Number: 94.006 Assistance Listing Name: AmeriCorps State and National Award Number: 19FXHWA0020005, Contract No. K3503 Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Subpart D - Post Federal Award Requirements, Section 200.303, Internal Controls, require that a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context The Organization?s internal controls require management of the program to keep ongoing records for each person enrolled in the program. Maximum stipend amounts are determined and set forth by the national Americorps program, and Americorps program staff update the member service agreements (MSAs) when updates are obtained. Of the 7 employees we tested for signed MSAs, 3 did not have MSAs on file and 2 had MSAs signed by the employees but not signed by the Organization?s management. Additionally, we noted 2 employees who were being paid higher living allowance stipends than their MSAs stated. Cause The Organization?s internal controls related to enrolling participants in the program and reviewing that signed MSAs were on file and agreeing amounts to the payroll records were not consistently applied. Effect or Potential Effect Deficiencies in internal controls related to living allowance stipends could result in material noncompliance. Questioned Costs None. Repeat Finding This is not a repeat finding. Recommendation We recommend the Organization enforce its policies for retention and review of records for each person enrolled in the program and strengthen review of payroll to the underlying records.Views of Responsible Officials and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2022-003 Significant deficiency in internal control over compliance related to reporting. Federal Agency: U.S. Department of the Treasury Pass-Through: City of Seattle, Human Services Department Assistance Listing Number: 21.023 Assistance Listing Name: COVID-19 Emergency Rental Assistance Program Award Number: ERA0208, Contract No. OH-2021-02 Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Subpart D - Post Federal Award Requirements, Section 200.303, Internal Controls, require that a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context The Organization?s internal controls require management to review reports to assure accuracy and completeness of data and information included in the reports. Of the 5 reports we tested, 2 did not have evidence of review. Cause The Organization?s internal controls over review of reports was not consistently applied. Effect Deficiencies in internal controls related to review of reports could result in inaccurate reporting. Questioned Costs None. Repeat Finding This is not a repeat finding. Recommendation We recommend the Organization enforce its policies and procedures over review of reports. Views of Responsible Officials and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2022-002 Significant deficiency in internal control over compliance for special tests and provisions. Federal Agency: Corporation for National and Community Service Pass-Through: Office of Financial Management Assistance Listing Number: 94.006 Assistance Listing Name: AmeriCorps State and National Award Number: 19FXHWA0020005, Contract No. K3503 Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Subpart D - Post Federal Award Requirements, Section 200.303, Internal Controls, require that a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context The Organization?s internal controls require management of the program to keep ongoing records for each person enrolled in the program. Maximum stipend amounts are determined and set forth by the national Americorps program, and Americorps program staff update the member service agreements (MSAs) when updates are obtained. Of the 7 employees we tested for signed MSAs, 3 did not have MSAs on file and 2 had MSAs signed by the employees but not signed by the Organization?s management. Additionally, we noted 2 employees who were being paid higher living allowance stipends than their MSAs stated. Cause The Organization?s internal controls related to enrolling participants in the program and reviewing that signed MSAs were on file and agreeing amounts to the payroll records were not consistently applied. Effect or Potential Effect Deficiencies in internal controls related to living allowance stipends could result in material noncompliance. Questioned Costs None. Repeat Finding This is not a repeat finding. Recommendation We recommend the Organization enforce its policies for retention and review of records for each person enrolled in the program and strengthen review of payroll to the underlying records.Views of Responsible Officials and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2022-003 Significant deficiency in internal control over compliance related to reporting. Federal Agency: U.S. Department of the Treasury Pass-Through: City of Seattle, Human Services Department Assistance Listing Number: 21.023 Assistance Listing Name: COVID-19 Emergency Rental Assistance Program Award Number: ERA0208, Contract No. OH-2021-02 Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Subpart D - Post Federal Award Requirements, Section 200.303, Internal Controls, require that a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context The Organization?s internal controls require management to review reports to assure accuracy and completeness of data and information included in the reports. Of the 5 reports we tested, 2 did not have evidence of review. Cause The Organization?s internal controls over review of reports was not consistently applied. Effect Deficiencies in internal controls related to review of reports could result in inaccurate reporting. Questioned Costs None. Repeat Finding This is not a repeat finding. Recommendation We recommend the Organization enforce its policies and procedures over review of reports. Views of Responsible Officials and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.