Audit 5897

Criteria: Employee payroll costs should be distributed equitably to federal programs and other activities, consistent with salary allocation and employee job descriptions and time and effort logs should be maintained to support allocation. Condition: Certain employees’ job descriptions are to work on more than one activity. Employees’ payroll costs were not distributed equitably or supported by time and effort logs. Cause: The source of allocating payroll costs by activity is the payroll report. The payroll system was not updated to properly reflect the correct allocation of payroll costs. Effect: The request for reimbursements for the federal programs noted above were not correct. Recommendation: We recommend that the payroll report is reviewed to ensure that payroll costs are allocated appropriately, consistent with contract allocation, based on the employee’s job description and supported by time and effort logs. Management Response: The Neighborhood House is undergoing an internal review of all payroll and payroll allocations. Adjustments and corrections to program allocations will be made accordingly. The payroll report will be reviewed annually for revisions.

Criteria: Level of services that are funded by AmeriCorps are required to be supplemented. This is satisfied by the aggregate expenditures for the program for the fiscal year must equal or exceed the aggregate expenditures for the program in the previous year, excluding federal assistance provided and any other amounts used to pay the remainder of program costs. Condition: Level of services funded by AmeriCorps were supplemented by the Neighborhood House but not to the extent that they equaled or exceeded the aggregate expenditures for the program in the previous year. Cause: The sources of supplementing the level of services funded by the federal program decreased during the current year due to the remaining effects COVID has had on the nation. Effect: Services provided by the federal program were underfunded, and therefore, were not able to assist as many individuals. Recommendation: We recommend that the funds needed to supplement the level of services funded by AmeriCorps be monitored so that the requirement for aggregate program expenditures in the current fiscal year equals or exceeds aggregate expenditures for the program in the previous year is satisfied. Management Response: The Neighborhood House, like many organizations, was impacted by the effects of COVID. The effects in the current year resulted in an inability to obtain in-kind contributions to the level necessary to meet AmeriCorps criteria. The Neighborhood House is investigating alternate sources of contributions and will monitor the requirement annually.

Criteria: Employee pay charged to the federal program should be approved and come from an identifiable source. Condition: Certain employees had additional pay charged to the program that was not included in their approved contracted pay for the year and the source of pay was unidentifiable. Cause: The payroll system was not updated to properly reflect the correct allocation of employee pay or benefits. Effect: The cost charged to the federal program was unable to be determined if it was allowable. Recommendation: We recommend that the payroll report is reviewed to ensure that pay is reconciled to annual salary contracts and support be maintained for any differences. Management Response: The Neighborhood House will conduct an internal review of all payroll and payroll allocations to make adjustments and corrections to program allocations. The payroll report will be reviewed annually for revisions. Staff will discuss a procedure to ensure that payroll and benefits are accurately allocated.

Criteria: Employee pay charged to the federal program should be approved and come from an identifiable source. Condition: Certain employees had additional pay charged to the program that was not included in their approved contracted pay for the year and the source of pay was unidentifiable. Cause: The payroll system was not updated to properly reflect the correct allocation of employee pay or benefits. Effect: The cost charged to the federal program was unable to be determined if it was allowable. Recommendation: We recommend that the payroll report is reviewed to ensure that pay is reconciled to annual salary contracts and support be maintained for any differences. Management Response: The Neighborhood House will conduct an internal review of all payroll and payroll allocations to make adjustments and corrections to program allocations. The payroll report will be reviewed annually for revisions. Staff will discuss a procedure to ensure that payroll and benefits are accurately allocated.

Criteria: Employee pay charged to the federal program should be approved and come from an identifiable source. Condition: Certain employees had additional pay charged to the program that was not included in their approved contracted pay for the year and the source of pay was unidentifiable. Cause: The payroll system was not updated to properly reflect the correct allocation of employee pay or benefits. Effect: The cost charged to the federal program was unable to be determined if it was allowable. Recommendation: We recommend that the payroll report is reviewed to ensure that pay is reconciled to annual salary contracts and support be maintained for any differences. Management Response: The Neighborhood House will conduct an internal review of all payroll and payroll allocations to make adjustments and corrections to program allocations. The payroll report will be reviewed annually for revisions. Staff will discuss a procedure to ensure that payroll and benefits are accurately allocated.

Criteria: Employee payroll costs should be distributed equitably to federal programs and other activities, consistent with salary allocation and employee job descriptions and time and effort logs should be maintained to support allocation. Condition: Certain employees’ job descriptions are to work on more than one activity. Employees’ payroll costs were not distributed equitably or supported by time and effort logs. Cause: The source of allocating payroll costs by activity is the payroll report. The payroll system was not updated to properly reflect the correct allocation of payroll costs. Effect: The request for reimbursements for the federal programs noted above were not correct. Recommendation: We recommend that the payroll report is reviewed to ensure that payroll costs are allocated appropriately, consistent with contract allocation, based on the employee’s job description and supported by time and effort logs. Management Response: The Neighborhood House is undergoing an internal review of all payroll and payroll allocations. Adjustments and corrections to program allocations will be made accordingly. The payroll report will be reviewed annually for revisions.

Criteria: Level of services that are funded by AmeriCorps are required to be supplemented. This is satisfied by the aggregate expenditures for the program for the fiscal year must equal or exceed the aggregate expenditures for the program in the previous year, excluding federal assistance provided and any other amounts used to pay the remainder of program costs. Condition: Level of services funded by AmeriCorps were supplemented by the Neighborhood House but not to the extent that they equaled or exceeded the aggregate expenditures for the program in the previous year. Cause: The sources of supplementing the level of services funded by the federal program decreased during the current year due to the remaining effects COVID has had on the nation. Effect: Services provided by the federal program were underfunded, and therefore, were not able to assist as many individuals. Recommendation: We recommend that the funds needed to supplement the level of services funded by AmeriCorps be monitored so that the requirement for aggregate program expenditures in the current fiscal year equals or exceeds aggregate expenditures for the program in the previous year is satisfied. Management Response: The Neighborhood House, like many organizations, was impacted by the effects of COVID. The effects in the current year resulted in an inability to obtain in-kind contributions to the level necessary to meet AmeriCorps criteria. The Neighborhood House is investigating alternate sources of contributions and will monitor the requirement annually.

Criteria: Employee pay charged to the federal program should be approved and come from an identifiable source. Condition: Certain employees had additional pay charged to the program that was not included in their approved contracted pay for the year and the source of pay was unidentifiable. Cause: The payroll system was not updated to properly reflect the correct allocation of employee pay or benefits. Effect: The cost charged to the federal program was unable to be determined if it was allowable. Recommendation: We recommend that the payroll report is reviewed to ensure that pay is reconciled to annual salary contracts and support be maintained for any differences. Management Response: The Neighborhood House will conduct an internal review of all payroll and payroll allocations to make adjustments and corrections to program allocations. The payroll report will be reviewed annually for revisions. Staff will discuss a procedure to ensure that payroll and benefits are accurately allocated.

Criteria: Employee pay charged to the federal program should be approved and come from an identifiable source. Condition: Certain employees had additional pay charged to the program that was not included in their approved contracted pay for the year and the source of pay was unidentifiable. Cause: The payroll system was not updated to properly reflect the correct allocation of employee pay or benefits. Effect: The cost charged to the federal program was unable to be determined if it was allowable. Recommendation: We recommend that the payroll report is reviewed to ensure that pay is reconciled to annual salary contracts and support be maintained for any differences. Management Response: The Neighborhood House will conduct an internal review of all payroll and payroll allocations to make adjustments and corrections to program allocations. The payroll report will be reviewed annually for revisions. Staff will discuss a procedure to ensure that payroll and benefits are accurately allocated.

Criteria: Employee pay charged to the federal program should be approved and come from an identifiable source. Condition: Certain employees had additional pay charged to the program that was not included in their approved contracted pay for the year and the source of pay was unidentifiable. Cause: The payroll system was not updated to properly reflect the correct allocation of employee pay or benefits. Effect: The cost charged to the federal program was unable to be determined if it was allowable. Recommendation: We recommend that the payroll report is reviewed to ensure that pay is reconciled to annual salary contracts and support be maintained for any differences. Management Response: The Neighborhood House will conduct an internal review of all payroll and payroll allocations to make adjustments and corrections to program allocations. The payroll report will be reviewed annually for revisions. Staff will discuss a procedure to ensure that payroll and benefits are accurately allocated.