Audit 9019

FY End
2023-06-30
Total Expended
$1.31M
Findings
6
Programs
1
Organization: Close Up Foundation (VA)
Year: 2023 Accepted: 2024-01-02

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
7005 2023-001 Significant Deficiency - B
7006 2023-001 Significant Deficiency - B
7007 2023-001 Significant Deficiency - B
583447 2023-001 Significant Deficiency - B
583448 2023-001 Significant Deficiency - B
583449 2023-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
15.875 Economic, Social, and Political Development of the Territories $94,573 Yes 1

Contacts

Name Title Type
KSJ2KNS7TAC4 Stephanie Stargell Auditee
7037063443 Jennifer McCahill Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: 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. 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. The Foundation has elected not 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 Foundation under programs of the Federal Government for the year ended June 30, 2023. The information in the 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 the Foundation, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Foundation.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: 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. 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. The Foundation has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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. 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. The Foundation has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001: Timesheets Federal Program: CFDA 15.875 Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, paragraph 430 “Compensation – personal services” requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed, and that these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Additionally, these records must comply with established accounting policies and practices of the non-Federal entity. Condition: During our audit, we noted that timesheets did not track time charged to Federal programs and accordingly, an after the fact allocation adjustment needed to be made to appropriately reflect the level of effort on the Federal program. Cause: The Foundation did not effectively communicate the required practices on how to track time on timesheets throughout the year. Effect or Potential Effect: The Foundation could inadvertently fail to maintain records to support cost allocations. Questioned Costs: Indeterminable Context: The Foundation did not keep timesheet records to support the amounts charged to the general ledger, during the year. Our audit work in this area consisted of a random sample selection of payroll periods and employees. We consider our sample to be representative of the population, and thus, is a statistically valid sample. Identification as a Repeat Finding: Not applicable Recommendation: We recommend that management enforce its current payroll policies, ensure each employee completes a timesheet that pertains to each payroll period and of which documents the allocation of time worked on departments, projects and affiliates (per the policy). Furthermore, the finance department should prepare and maintain a reconciliation between the program allocations (as documented in the approved timesheets) and the general ledger in order to ensure a full and accurate audit trail of payroll expenditures.
Finding 2023-001: Timesheets Federal Program: CFDA 15.875 Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, paragraph 430 “Compensation – personal services” requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed, and that these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Additionally, these records must comply with established accounting policies and practices of the non-Federal entity. Condition: During our audit, we noted that timesheets did not track time charged to Federal programs and accordingly, an after the fact allocation adjustment needed to be made to appropriately reflect the level of effort on the Federal program. Cause: The Foundation did not effectively communicate the required practices on how to track time on timesheets throughout the year. Effect or Potential Effect: The Foundation could inadvertently fail to maintain records to support cost allocations. Questioned Costs: Indeterminable Context: The Foundation did not keep timesheet records to support the amounts charged to the general ledger, during the year. Our audit work in this area consisted of a random sample selection of payroll periods and employees. We consider our sample to be representative of the population, and thus, is a statistically valid sample. Identification as a Repeat Finding: Not applicable Recommendation: We recommend that management enforce its current payroll policies, ensure each employee completes a timesheet that pertains to each payroll period and of which documents the allocation of time worked on departments, projects and affiliates (per the policy). Furthermore, the finance department should prepare and maintain a reconciliation between the program allocations (as documented in the approved timesheets) and the general ledger in order to ensure a full and accurate audit trail of payroll expenditures.
Finding 2023-001: Timesheets Federal Program: CFDA 15.875 Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, paragraph 430 “Compensation – personal services” requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed, and that these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Additionally, these records must comply with established accounting policies and practices of the non-Federal entity. Condition: During our audit, we noted that timesheets did not track time charged to Federal programs and accordingly, an after the fact allocation adjustment needed to be made to appropriately reflect the level of effort on the Federal program. Cause: The Foundation did not effectively communicate the required practices on how to track time on timesheets throughout the year. Effect or Potential Effect: The Foundation could inadvertently fail to maintain records to support cost allocations. Questioned Costs: Indeterminable Context: The Foundation did not keep timesheet records to support the amounts charged to the general ledger, during the year. Our audit work in this area consisted of a random sample selection of payroll periods and employees. We consider our sample to be representative of the population, and thus, is a statistically valid sample. Identification as a Repeat Finding: Not applicable Recommendation: We recommend that management enforce its current payroll policies, ensure each employee completes a timesheet that pertains to each payroll period and of which documents the allocation of time worked on departments, projects and affiliates (per the policy). Furthermore, the finance department should prepare and maintain a reconciliation between the program allocations (as documented in the approved timesheets) and the general ledger in order to ensure a full and accurate audit trail of payroll expenditures.
Finding 2023-001: Timesheets Federal Program: CFDA 15.875 Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, paragraph 430 “Compensation – personal services” requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed, and that these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Additionally, these records must comply with established accounting policies and practices of the non-Federal entity. Condition: During our audit, we noted that timesheets did not track time charged to Federal programs and accordingly, an after the fact allocation adjustment needed to be made to appropriately reflect the level of effort on the Federal program. Cause: The Foundation did not effectively communicate the required practices on how to track time on timesheets throughout the year. Effect or Potential Effect: The Foundation could inadvertently fail to maintain records to support cost allocations. Questioned Costs: Indeterminable Context: The Foundation did not keep timesheet records to support the amounts charged to the general ledger, during the year. Our audit work in this area consisted of a random sample selection of payroll periods and employees. We consider our sample to be representative of the population, and thus, is a statistically valid sample. Identification as a Repeat Finding: Not applicable Recommendation: We recommend that management enforce its current payroll policies, ensure each employee completes a timesheet that pertains to each payroll period and of which documents the allocation of time worked on departments, projects and affiliates (per the policy). Furthermore, the finance department should prepare and maintain a reconciliation between the program allocations (as documented in the approved timesheets) and the general ledger in order to ensure a full and accurate audit trail of payroll expenditures.
Finding 2023-001: Timesheets Federal Program: CFDA 15.875 Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, paragraph 430 “Compensation – personal services” requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed, and that these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Additionally, these records must comply with established accounting policies and practices of the non-Federal entity. Condition: During our audit, we noted that timesheets did not track time charged to Federal programs and accordingly, an after the fact allocation adjustment needed to be made to appropriately reflect the level of effort on the Federal program. Cause: The Foundation did not effectively communicate the required practices on how to track time on timesheets throughout the year. Effect or Potential Effect: The Foundation could inadvertently fail to maintain records to support cost allocations. Questioned Costs: Indeterminable Context: The Foundation did not keep timesheet records to support the amounts charged to the general ledger, during the year. Our audit work in this area consisted of a random sample selection of payroll periods and employees. We consider our sample to be representative of the population, and thus, is a statistically valid sample. Identification as a Repeat Finding: Not applicable Recommendation: We recommend that management enforce its current payroll policies, ensure each employee completes a timesheet that pertains to each payroll period and of which documents the allocation of time worked on departments, projects and affiliates (per the policy). Furthermore, the finance department should prepare and maintain a reconciliation between the program allocations (as documented in the approved timesheets) and the general ledger in order to ensure a full and accurate audit trail of payroll expenditures.
Finding 2023-001: Timesheets Federal Program: CFDA 15.875 Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, paragraph 430 “Compensation – personal services” requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed, and that these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Additionally, these records must comply with established accounting policies and practices of the non-Federal entity. Condition: During our audit, we noted that timesheets did not track time charged to Federal programs and accordingly, an after the fact allocation adjustment needed to be made to appropriately reflect the level of effort on the Federal program. Cause: The Foundation did not effectively communicate the required practices on how to track time on timesheets throughout the year. Effect or Potential Effect: The Foundation could inadvertently fail to maintain records to support cost allocations. Questioned Costs: Indeterminable Context: The Foundation did not keep timesheet records to support the amounts charged to the general ledger, during the year. Our audit work in this area consisted of a random sample selection of payroll periods and employees. We consider our sample to be representative of the population, and thus, is a statistically valid sample. Identification as a Repeat Finding: Not applicable Recommendation: We recommend that management enforce its current payroll policies, ensure each employee completes a timesheet that pertains to each payroll period and of which documents the allocation of time worked on departments, projects and affiliates (per the policy). Furthermore, the finance department should prepare and maintain a reconciliation between the program allocations (as documented in the approved timesheets) and the general ledger in order to ensure a full and accurate audit trail of payroll expenditures.