Description: Review of Account Reconciliations and Financial Statements
Repeat Finding: No
Type of Finding: Significant deficiency in internal controls over the allowable costs and reporting compliance requirements
Questioned Costs: None
Major Program: AL # 64.033, VA Supportive Services for Veteran Families Program, #20-OR-430 and #20-OR-430-C3
Condition: During the year ended June 30, 2022, the Organization relied on its service provider to perform the accounting and financial reporting functions. Internal controls of the Organization are designed to ensure periodic, timely reviews by management of significant account reconciliations and interim financial statements. During the year, these timely reviews did not consistently occur. In addition, this deficiency contributed to delays in completing the audit which caused the audit package submission to the Federal Audit Clearinghouse to be late.
Criteria: Internal controls are effective if they are properly designed and implemented to prevent or detect misstatements in a timely manner.
Cause: The service provider was unable to provide the Organization with timely reconciliations or financial statements throughout the year. The Organization did not take timely action to ensure such information was provided in accordance with their contract with the service provider and designed internal controls.
Effect: As a result of the matter identified in the condition paragraph, a significant deficiency exists in the Organization’s internal controls over financial reporting.
Recommendation: We recommend the Organization implements procedures to ensure its service providers are meeting the requirements of the contract and to take timely action when, and if, it becomes apparent the required financial information is not provided on a timely basis.
View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.
Description: Review of Account Reconciliations and Financial Statements
Repeat Finding: No
Type of Finding: Significant deficiency in internal controls over the allowable costs and reporting compliance requirements
Questioned Costs: None
Major Program: AL # 64.033, VA Supportive Services for Veteran Families Program, #20-OR-430 and #20-OR-430-C3
Condition: During the audit, Wipfli LLP observed one employee whose gross payroll did not correspond to the approved wage rate authorization. The discrepancy was not material to the financial statements or to reported grant expenditures.
Criteria: Salaries paid to employees and expensed to the Organization’s funding sources need to be based on approved wage rate authorizations.
Cause: An updated wage rate authorization was not maintained by the Organization in this employee’s personnel files.
Effect: As a result of the matter identified in the condition paragraph, a significant deficiency exists in the Organization’s internal controls over payroll expense.
Recommendation: We recommend the Organization implements procedures to ensure the Organization properly approves and documents changes in pay rates when such changes occur and retain the documentation in the employees’ personnel files.
View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.
Description: Cash Management for Subrecipient Expenditures
Repeat Finding: No
Type of Finding: Material weakness in internal controls and material non-compliance with the cash management compliance requirement
Questioned Costs: None
Major Program: AL # 64.033, VA Supportive Services for Veteran Families Program, #20-OR-430 and #20-OR-430-C3.
Condition: During the year ended June 30, 2022, the Organization regularly drew down cash from the Payment Management System (PMS) for subrecipient expenditures but did not remit the related payments to the subrecipients in a timely manner. Review of supporting documentation submitted by subrecipients for their expenditures did not occur prior to drawing down the cash from PMS for the related expenditures.
Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity (2 CFR section 200.305(b)).
Cause: The Organization did not ensure its service provider was properly managing subrecipient cash requests and disbursements throughout the year and was not consistently reviewing subrecipient expenditure requests in a timely manner.
Effect: As a result of the matter identified in the condition paragraph, a material weakness in the Organization’s internal controls over compliance and a material non-compliance exist for the cash management compliance requirement.
Recommendation: We recommend the Organization implements procedures to ensure it is properly managing the timing of subrecipient cash requests and disbursements to comply with the cash management requirement.
View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.
Description: Review of Account Reconciliations and Financial Statements
Repeat Finding: No
Type of Finding: Significant deficiency in internal controls over the allowable costs and reporting compliance requirements
Questioned Costs: None
Major Program: AL # 64.033, VA Supportive Services for Veteran Families Program, #20-OR-430 and #20-OR-430-C3
Condition: During the year ended June 30, 2022, the Organization relied on its service provider to perform the accounting and financial reporting functions. Internal controls of the Organization are designed to ensure periodic, timely reviews by management of significant account reconciliations and interim financial statements. During the year, these timely reviews did not consistently occur. In addition, this deficiency contributed to delays in completing the audit which caused the audit package submission to the Federal Audit Clearinghouse to be late.
Criteria: Internal controls are effective if they are properly designed and implemented to prevent or detect misstatements in a timely manner.
Cause: The service provider was unable to provide the Organization with timely reconciliations or financial statements throughout the year. The Organization did not take timely action to ensure such information was provided in accordance with their contract with the service provider and designed internal controls.
Effect: As a result of the matter identified in the condition paragraph, a significant deficiency exists in the Organization’s internal controls over financial reporting.
Recommendation: We recommend the Organization implements procedures to ensure its service providers are meeting the requirements of the contract and to take timely action when, and if, it becomes apparent the required financial information is not provided on a timely basis.
View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.
Description: Review of Account Reconciliations and Financial Statements
Repeat Finding: No
Type of Finding: Significant deficiency in internal controls over the allowable costs and reporting compliance requirements
Questioned Costs: None
Major Program: AL # 64.033, VA Supportive Services for Veteran Families Program, #20-OR-430 and #20-OR-430-C3
Condition: During the audit, Wipfli LLP observed one employee whose gross payroll did not correspond to the approved wage rate authorization. The discrepancy was not material to the financial statements or to reported grant expenditures.
Criteria: Salaries paid to employees and expensed to the Organization’s funding sources need to be based on approved wage rate authorizations.
Cause: An updated wage rate authorization was not maintained by the Organization in this employee’s personnel files.
Effect: As a result of the matter identified in the condition paragraph, a significant deficiency exists in the Organization’s internal controls over payroll expense.
Recommendation: We recommend the Organization implements procedures to ensure the Organization properly approves and documents changes in pay rates when such changes occur and retain the documentation in the employees’ personnel files.
View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.
Description: Cash Management for Subrecipient Expenditures
Repeat Finding: No
Type of Finding: Material weakness in internal controls and material non-compliance with the cash management compliance requirement
Questioned Costs: None
Major Program: AL # 64.033, VA Supportive Services for Veteran Families Program, #20-OR-430 and #20-OR-430-C3.
Condition: During the year ended June 30, 2022, the Organization regularly drew down cash from the Payment Management System (PMS) for subrecipient expenditures but did not remit the related payments to the subrecipients in a timely manner. Review of supporting documentation submitted by subrecipients for their expenditures did not occur prior to drawing down the cash from PMS for the related expenditures.
Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity (2 CFR section 200.305(b)).
Cause: The Organization did not ensure its service provider was properly managing subrecipient cash requests and disbursements throughout the year and was not consistently reviewing subrecipient expenditure requests in a timely manner.
Effect: As a result of the matter identified in the condition paragraph, a material weakness in the Organization’s internal controls over compliance and a material non-compliance exist for the cash management compliance requirement.
Recommendation: We recommend the Organization implements procedures to ensure it is properly managing the timing of subrecipient cash requests and disbursements to comply with the cash management requirement.
View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.