FAC Explorer

Audit 721

FY End
2021-09-30
Total Expended
$2.19M
Findings
4
Programs
5
Organization: Western Kentucky Refugee Mutual Assistance Society, Inc. (KY)
Year: 2021 Accepted: 2023-10-17
Auditor: Shelton CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
350 2021-003 Material Weakness - A
351 2021-004 Material Weakness - A
576792 2021-003 Material Weakness - A
576793 2021-004 Material Weakness - A

Programs

ALN Program Spent Major Findings
19.510 U.s. Refugee Admissions Program $840,701 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $801,215 Yes 2
93.567 Refugee and Entrant Assistance_voluntary Agency Programs $430,686 - 0
93.583 Refugee and Entrant Assistance_wilson/fish Program $98,228 - 0
93.576 Refugee and Entrant Assistance_discretionary Grants $19,165 - 0

Contacts

Name Title Type
ZYHRWCJHMMZ6 Albert Mbanfu Auditee
2707818336 Stephanie Lutterman Auditor
No contacts on file

Notes to SEFA

Title: Basis of Accounting Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Any negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Western Kentucky Refugee Mutual Assistance Society, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of the WKRMAS, Inc. under programs of the federal government for the year ended September 30, 2021 and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, 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 Western Kentucky Refugee Mutual Assistance Society, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Western Kentucky Refugee Mutual Assistance Society, Inc.

Finding Details

Finding 2021-003
2021-003 Internal Control Criteria: Internal control is an integral component of an organization’s management that provides reasonable assurance that an objective of reliable financial reporting is being achieved. Organizations should implement procedures to ensure this objective is achieved. Condition: The entity does not have sufficient controls designed or in place to detect that payroll charged to grants can be substantiated by proper documentation. Effect: Because this control was not in place, noncompliance with the terms of grant agreements has occurred. Cause: The agency did not meet the requirements of its grant agreements. Recommendation: Design and implement a control that can ensure the payroll amounts charged to grants can be substantiated by proper documentation. Response: We agree with the findings and plan to implement steps to remedy the issue.
Finding 2021-004
2021-004 Refugee and Entrant Assistance State/Replacement Designee Administered Programs (Assistance Listing Number 93.566) Criteria: 2 CFR Part 200, Section 430, (i)(1)(vii) states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed and those records must support the distribution of the employee’s salary or wages among specific activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: There is inadequate documentation to support salaries and wages charged to the grant. Salaries charged to the grant in the amount of $12,709 did not have documentation that verified that the grant could be charged. Effect: These costs not substantiated by proper records may be disallowed. Population and Sample Size: The entire population was reviewed. Our testing combined with a monitoring report from the pass-through agency determined this amount. Recommendation: Implement and enforce a policy that employees must complete adequate time sheets that list duties and grant that should be charged for time. Response: We agree with the findings and plan to implement steps to remedy the issue.
Finding 2021-003
2021-003 Internal Control Criteria: Internal control is an integral component of an organization’s management that provides reasonable assurance that an objective of reliable financial reporting is being achieved. Organizations should implement procedures to ensure this objective is achieved. Condition: The entity does not have sufficient controls designed or in place to detect that payroll charged to grants can be substantiated by proper documentation. Effect: Because this control was not in place, noncompliance with the terms of grant agreements has occurred. Cause: The agency did not meet the requirements of its grant agreements. Recommendation: Design and implement a control that can ensure the payroll amounts charged to grants can be substantiated by proper documentation. Response: We agree with the findings and plan to implement steps to remedy the issue.
Finding 2021-004
2021-004 Refugee and Entrant Assistance State/Replacement Designee Administered Programs (Assistance Listing Number 93.566) Criteria: 2 CFR Part 200, Section 430, (i)(1)(vii) states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed and those records must support the distribution of the employee’s salary or wages among specific activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: There is inadequate documentation to support salaries and wages charged to the grant. Salaries charged to the grant in the amount of $12,709 did not have documentation that verified that the grant could be charged. Effect: These costs not substantiated by proper records may be disallowed. Population and Sample Size: The entire population was reviewed. Our testing combined with a monitoring report from the pass-through agency determined this amount. Recommendation: Implement and enforce a policy that employees must complete adequate time sheets that list duties and grant that should be charged for time. Response: We agree with the findings and plan to implement steps to remedy the issue.