--Type of Finding: Material weakness in internal control over compliance --Federal Program: All federal programs --Questioned Costs: None --Criteria: Title 2, CFR Part 200, Subpart F, § 200.510(b) requires the auditee to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with § 200.502. --Condition: While performing audit procedures on the schedule of expenditures of federal awards (SEFA), we identified federal awards that the organization did not identify for inclusion in the SEFA. The SEFA was materially misstated due to the exclusion of two federal awards with expenditures totaling $169,960 during the year, and discrepancies in relevant information expenditure amounts listed for certain other federal awards totaling $92,083. --Cause: There is a deficiency in the design and implementation of internal controls in place to identify federal awards and expenditures for inclusion on the SEFA, and to properly review the SEFA. --Effect: Failure to accurately identify federal awards could cause the SEFA to be materially misstated and the performance of an insufficient major federal award programs audit. --Recommendation: To ensure an accurate and complete presentation of the SEFA, we recommend management develop a system whereby all federal assistance is identified at both the program level and in the accounting department. We recommend identifying whether grants or other forms of assistance include federal funding at the time grants are signed or received. We further recommend that one individual be made responsible for tracking this information and that the information be provided to and reviewed by an individual in the accounting department on an ongoing basis. --Views of Responsible Officials: Management agrees with auditor’s finding. See attached corrective action plan.
--Type of Finding: Material weakness in internal control over compliance --Federal Program: All federal programs --Questioned Costs: None --Criteria: Title 2, CFR Part 200, Subpart F, § 200.510(b) requires the auditee to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with § 200.502. --Condition: While performing audit procedures on the schedule of expenditures of federal awards (SEFA), we identified federal awards that the organization did not identify for inclusion in the SEFA. The SEFA was materially misstated due to the exclusion of two federal awards with expenditures totaling $169,960 during the year, and discrepancies in relevant information expenditure amounts listed for certain other federal awards totaling $92,083. --Cause: There is a deficiency in the design and implementation of internal controls in place to identify federal awards and expenditures for inclusion on the SEFA, and to properly review the SEFA. --Effect: Failure to accurately identify federal awards could cause the SEFA to be materially misstated and the performance of an insufficient major federal award programs audit. --Recommendation: To ensure an accurate and complete presentation of the SEFA, we recommend management develop a system whereby all federal assistance is identified at both the program level and in the accounting department. We recommend identifying whether grants or other forms of assistance include federal funding at the time grants are signed or received. We further recommend that one individual be made responsible for tracking this information and that the information be provided to and reviewed by an individual in the accounting department on an ongoing basis. --Views of Responsible Officials: Management agrees with auditor’s finding. See attached corrective action plan.
Assistance Listing Numbers: 20.500 Capital Investment Grants (Fixed Guideway Capital Investment Grants), 20.507 Federal Transit – Formula Grants (Urbanized Area Formula), 20.525 State of Good Repair Grants, 20.505 Metropolitan Transportation Planning Grants, and 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities Federal Agency – Department of Transportation Finding Type: Significant Deficiency and Non-Compliance Condition During the audit, it was found that the auditee incorrectly classified the following: • Assistance Listing Number 20.500 Capital Investment Grants (Fixed Guideway Capital Investment Grants) – Management reported $2,455,795 as federal awards expended instead of $1,589,748, which were the amounts validated by the auditors. • Assistance Listing Number 20.507 Federal Transit – Formula Grants (Urbanized Area Formula) – Management reported $25,222,452 as federal awards expended instead of $21,372,923, which were the amounts validated by the auditors. • Assistance Listing Number 20.525 State of Good Repair Grants – Management did not report federal awards expended instead of $4,715,576, which was the amount validated by the auditors. • Assistance Listing Number 20.505 Metropolitan Transportation Planning Grants – Management reported $2,279,469 as federal awards expended instead of $2,210,082, which were the amounts validated by the auditors. • Assistance Listing Number 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities – Management reported $15,848.93 as federal awards expended instead of $14,912.93, which were the amounts validated by the auditors. Criteria Under 2 CFR 200.510(b), auditees are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) and must include accurate information about expenditures for each federal program, including the correct Assistance Listing number. In addition, the auditee must provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. Cause The misclassification appears to have resulted from a misunderstanding of the program guidelines and a lack of adequate internal controls to ensure the accurate reporting of federal expenditures. Effect This misclassification could result in noncompliance with federal regulations and may impact the federal agency's ability to accurately monitor and allocate funding. Furthermore, it may lead to incorrect conclusions about the auditee's compliance with specific program requirements. Questioned Costs None Recommendation It is recommended that the auditee: • Review and revise its procedures for classifying federal expenditures to ensure accurate alignment with assistance listing numbers. • Implement additional training for staff responsible for preparing the SEFA. • Conduct a thorough review of all federal program expenditures for the current and previous years to identify and correct any similar misclassifications.
Assistance Listing Numbers: 20.500 Capital Investment Grants (Fixed Guideway Capital Investment Grants), 20.507 Federal Transit – Formula Grants (Urbanized Area Formula), 20.525 State of Good Repair Grants, 20.505 Metropolitan Transportation Planning Grants, and 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities Federal Agency – Department of Transportation Finding Type: Significant Deficiency and Non-Compliance Condition During the audit, it was found that the auditee incorrectly classified the following: • Assistance Listing Number 20.500 Capital Investment Grants (Fixed Guideway Capital Investment Grants) – Management reported $2,455,795 as federal awards expended instead of $1,589,748, which were the amounts validated by the auditors. • Assistance Listing Number 20.507 Federal Transit – Formula Grants (Urbanized Area Formula) – Management reported $25,222,452 as federal awards expended instead of $21,372,923, which were the amounts validated by the auditors. • Assistance Listing Number 20.525 State of Good Repair Grants – Management did not report federal awards expended instead of $4,715,576, which was the amount validated by the auditors. • Assistance Listing Number 20.505 Metropolitan Transportation Planning Grants – Management reported $2,279,469 as federal awards expended instead of $2,210,082, which were the amounts validated by the auditors. • Assistance Listing Number 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities – Management reported $15,848.93 as federal awards expended instead of $14,912.93, which were the amounts validated by the auditors. Criteria Under 2 CFR 200.510(b), auditees are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) and must include accurate information about expenditures for each federal program, including the correct Assistance Listing number. In addition, the auditee must provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. Cause The misclassification appears to have resulted from a misunderstanding of the program guidelines and a lack of adequate internal controls to ensure the accurate reporting of federal expenditures. Effect This misclassification could result in noncompliance with federal regulations and may impact the federal agency's ability to accurately monitor and allocate funding. Furthermore, it may lead to incorrect conclusions about the auditee's compliance with specific program requirements. Questioned Costs None Recommendation It is recommended that the auditee: • Review and revise its procedures for classifying federal expenditures to ensure accurate alignment with assistance listing numbers. • Implement additional training for staff responsible for preparing the SEFA. • Conduct a thorough review of all federal program expenditures for the current and previous years to identify and correct any similar misclassifications.
Assistance Listing Numbers: 20.500 Capital Investment Grants (Fixed Guideway Capital Investment Grants), 20.507 Federal Transit – Formula Grants (Urbanized Area Formula), 20.525 State of Good Repair Grants, 20.505 Metropolitan Transportation Planning Grants, and 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities Federal Agency – Department of Transportation Finding Type: Significant Deficiency and Non-Compliance Condition During the audit, it was found that the auditee incorrectly classified the following: • Assistance Listing Number 20.500 Capital Investment Grants (Fixed Guideway Capital Investment Grants) – Management reported $2,455,795 as federal awards expended instead of $1,589,748, which were the amounts validated by the auditors. • Assistance Listing Number 20.507 Federal Transit – Formula Grants (Urbanized Area Formula) – Management reported $25,222,452 as federal awards expended instead of $21,372,923, which were the amounts validated by the auditors. • Assistance Listing Number 20.525 State of Good Repair Grants – Management did not report federal awards expended instead of $4,715,576, which was the amount validated by the auditors. • Assistance Listing Number 20.505 Metropolitan Transportation Planning Grants – Management reported $2,279,469 as federal awards expended instead of $2,210,082, which were the amounts validated by the auditors. • Assistance Listing Number 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities – Management reported $15,848.93 as federal awards expended instead of $14,912.93, which were the amounts validated by the auditors. Criteria Under 2 CFR 200.510(b), auditees are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) and must include accurate information about expenditures for each federal program, including the correct Assistance Listing number. In addition, the auditee must provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. Cause The misclassification appears to have resulted from a misunderstanding of the program guidelines and a lack of adequate internal controls to ensure the accurate reporting of federal expenditures. Effect This misclassification could result in noncompliance with federal regulations and may impact the federal agency's ability to accurately monitor and allocate funding. Furthermore, it may lead to incorrect conclusions about the auditee's compliance with specific program requirements. Questioned Costs None Recommendation It is recommended that the auditee: • Review and revise its procedures for classifying federal expenditures to ensure accurate alignment with assistance listing numbers. • Implement additional training for staff responsible for preparing the SEFA. • Conduct a thorough review of all federal program expenditures for the current and previous years to identify and correct any similar misclassifications.
Assistance Listing Numbers: 20.500 Capital Investment Grants (Fixed Guideway Capital Investment Grants), 20.507 Federal Transit – Formula Grants (Urbanized Area Formula), 20.525 State of Good Repair Grants, 20.505 Metropolitan Transportation Planning Grants, and 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities Federal Agency – Department of Transportation Finding Type: Significant Deficiency and Non-Compliance Condition During the audit, it was found that the auditee incorrectly classified the following: • Assistance Listing Number 20.500 Capital Investment Grants (Fixed Guideway Capital Investment Grants) – Management reported $2,455,795 as federal awards expended instead of $1,589,748, which were the amounts validated by the auditors. • Assistance Listing Number 20.507 Federal Transit – Formula Grants (Urbanized Area Formula) – Management reported $25,222,452 as federal awards expended instead of $21,372,923, which were the amounts validated by the auditors. • Assistance Listing Number 20.525 State of Good Repair Grants – Management did not report federal awards expended instead of $4,715,576, which was the amount validated by the auditors. • Assistance Listing Number 20.505 Metropolitan Transportation Planning Grants – Management reported $2,279,469 as federal awards expended instead of $2,210,082, which were the amounts validated by the auditors. • Assistance Listing Number 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities – Management reported $15,848.93 as federal awards expended instead of $14,912.93, which were the amounts validated by the auditors. Criteria Under 2 CFR 200.510(b), auditees are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) and must include accurate information about expenditures for each federal program, including the correct Assistance Listing number. In addition, the auditee must provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. Cause The misclassification appears to have resulted from a misunderstanding of the program guidelines and a lack of adequate internal controls to ensure the accurate reporting of federal expenditures. Effect This misclassification could result in noncompliance with federal regulations and may impact the federal agency's ability to accurately monitor and allocate funding. Furthermore, it may lead to incorrect conclusions about the auditee's compliance with specific program requirements. Questioned Costs None Recommendation It is recommended that the auditee: • Review and revise its procedures for classifying federal expenditures to ensure accurate alignment with assistance listing numbers. • Implement additional training for staff responsible for preparing the SEFA. • Conduct a thorough review of all federal program expenditures for the current and previous years to identify and correct any similar misclassifications.
Assistance Listing Numbers: 20.500 Capital Investment Grants (Fixed Guideway Capital Investment Grants), 20.507 Federal Transit – Formula Grants (Urbanized Area Formula), 20.525 State of Good Repair Grants, 20.505 Metropolitan Transportation Planning Grants, and 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities Federal Agency – Department of Transportation Finding Type: Significant Deficiency and Non-Compliance Condition During the audit, it was found that the auditee incorrectly classified the following: • Assistance Listing Number 20.500 Capital Investment Grants (Fixed Guideway Capital Investment Grants) – Management reported $2,455,795 as federal awards expended instead of $1,589,748, which were the amounts validated by the auditors. • Assistance Listing Number 20.507 Federal Transit – Formula Grants (Urbanized Area Formula) – Management reported $25,222,452 as federal awards expended instead of $21,372,923, which were the amounts validated by the auditors. • Assistance Listing Number 20.525 State of Good Repair Grants – Management did not report federal awards expended instead of $4,715,576, which was the amount validated by the auditors. • Assistance Listing Number 20.505 Metropolitan Transportation Planning Grants – Management reported $2,279,469 as federal awards expended instead of $2,210,082, which were the amounts validated by the auditors. • Assistance Listing Number 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities – Management reported $15,848.93 as federal awards expended instead of $14,912.93, which were the amounts validated by the auditors. Criteria Under 2 CFR 200.510(b), auditees are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) and must include accurate information about expenditures for each federal program, including the correct Assistance Listing number. In addition, the auditee must provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. Cause The misclassification appears to have resulted from a misunderstanding of the program guidelines and a lack of adequate internal controls to ensure the accurate reporting of federal expenditures. Effect This misclassification could result in noncompliance with federal regulations and may impact the federal agency's ability to accurately monitor and allocate funding. Furthermore, it may lead to incorrect conclusions about the auditee's compliance with specific program requirements. Questioned Costs None Recommendation It is recommended that the auditee: • Review and revise its procedures for classifying federal expenditures to ensure accurate alignment with assistance listing numbers. • Implement additional training for staff responsible for preparing the SEFA. • Conduct a thorough review of all federal program expenditures for the current and previous years to identify and correct any similar misclassifications.
Finding 2023-001: Accuracy of expenditures on the Schedule of Expenditures of Federal Awards and submission of special reports for the Head Start Program Cluster Name: Head Start Federal Awarding Agency: Department of Health and Human Services Award Name: Head Start and Early Head Start, COVID (P.L. 116-260) Award Number: 09CH010228-05-05, 09CH011831-02-03, 09HE000328-01-00 Award Years: 2019-2021, 2021-2022, 2021-2023 Assistance Listing Title: Head Start Assistance Listing Number: 93.600 Pass-through entities: Not applicable Criteria 2 CFR 200.510 Financial statements requires auditees to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records and other federal guidance. 2 CFR Part 200 Appendix XI Part 3-L-1 Performance and Special Reporting notes that non-federal entities may be required to submit performance reports at least annually but not more frequently than quarterly, except in unusual circumstances, using a form or format authorized by OMB (2 CFR section 200.329). They also may be required to submit special reports as required by the terms and conditions of the federal award. Condition The following errors were identified related to funding that was improperly included in the fiscal year 2023 SEFA and have subsequently been corrected in the fiscal year 2023 SEFA by the University, as a result of our audit procedures: • In fiscal year 2023, $283 thousand in budgeted capital expenditures were charged to and drawn down on Head Start awards before actual expenditures were incurred by the University. Management identified the error in the subsequent year and credited the fiscal year 2024 SEFA for this amount. Additionally, management refunded the federal agency $159 thousand of the amount in November 2023 and is in the process of refunding the remaining balance plus imputed interest. • In fiscal year 2023, $67 thousand in actual expenditures were charged to a Head Start award after liquidation extensions associated with the award had expired. Management identified the error in the subsequent year but had not yet credited the amount in the SEFA. None of the funds were drawn down from the federal agency, and thus, a refund to the federal agency was not required. Of the three required federal reports selected for testing, two were not submitted until selected for testing and one has not yet been submitted. Cause The University has limited federal awards that are utilized to fund capital expenditures. As a result, management was not aware that budgeted capital expenditures were being charged to the Head Start program in advance of being incurred by the University’s Facilities Management Services Department. Additionally, while the University’s IT system prevents the draw down of funding from federal agencies for awards that have expired, it does not prevent expenditures from being charged to expired awards. Management’s manual expenditure reconciliation process for the Head Start program failed to identify that expenditures were charged to the award after the expiration date in a timely manner. Management lacks a formalized process for identifying and tracking submission of required reports under the Head Start program. Effect A SEFA that is not accurate could impact the scoping of an entity’s major programs and result in inaccurate information being provided to the federal government. Not submitting required federal reports results in the federal government not having the information it needs to inform improvements in program outcomes and productivity. Questioned Costs None noted. Recommendation We recommend that management reinforce its existing policies regarding the charging of expenditures to the Head Start program with all departments involved in administering federal awards. Additionally, we recommend that management more timely reconcile expenditures charged to the Head Start program so that any necessary adjustments are reflected in the appropriate fiscal year. We recommend management implement a formal process to identify and track submission of required reports under the Head Start program. Management’s Corrective Action Plan Management’s response is reported on “Management’s Views and Corrective Action Plan” at the end of this report.
Condition:We noted that some Federal expenditures for certain listed programs did not agree to the underlying financial records. The underlying financial records are prepared in accordance to requirements in 2 CFR 200.502 and thus the expenditures per program should agree with the underlying financial records. Certain accruals of expenses were made in the financial records that were not reflected on the SEFA. Criteria:The Code of Federal Regulations requires that auditees prepare the Schedule of Expenditures of Federal Awards (SEFA) (2 CFR 200.510(b)) and display all Federal expenditures per Federal program (2 CFR 200.510(b)(3)) in accordance with the expenditure guidelines at 2 CFR 200.502. Expenditures should be based, generally, on when the activity occurred. In general, this means that the SEFA will agree to the underlying financial records. Cause:This was due to a misunderstanding of how the accruals should relate to the SEFA. Effect:The SEFA was overstated for the current year before correction. Context:This issue does not appear pervasive. While the misstatement was material, the accruals were unusual and not a pervasive mistake. Recommendation:We recommend fully agreeing the SEFA to the underlying financial statements. The reconciliation process was completed with the exception of these accruals. We recommend including the accruals in most cases since Federal expenditures are generally calculated in accordance with GAAP accrual accounting. Deviations from GAAP can be found at 2 CFR 200.502. Views of Responsible Officials:Management agrees with the finding.
Condition:We noted that some Federal expenditures for certain listed programs did not agree to the underlying financial records. The underlying financial records are prepared in accordance to requirements in 2 CFR 200.502 and thus the expenditures per program should agree with the underlying financial records. Certain accruals of expenses were made in the financial records that were not reflected on the SEFA. Criteria:The Code of Federal Regulations requires that auditees prepare the Schedule of Expenditures of Federal Awards (SEFA) (2 CFR 200.510(b)) and display all Federal expenditures per Federal program (2 CFR 200.510(b)(3)) in accordance with the expenditure guidelines at 2 CFR 200.502. Expenditures should be based, generally, on when the activity occurred. In general, this means that the SEFA will agree to the underlying financial records. Cause:This was due to a misunderstanding of how the accruals should relate to the SEFA. Effect:The SEFA was overstated for the current year before correction. Context:This issue does not appear pervasive. While the misstatement was material, the accruals were unusual and not a pervasive mistake. Recommendation:We recommend fully agreeing the SEFA to the underlying financial statements. The reconciliation process was completed with the exception of these accruals. We recommend including the accruals in most cases since Federal expenditures are generally calculated in accordance with GAAP accrual accounting. Deviations from GAAP can be found at 2 CFR 200.502. Views of Responsible Officials:Management agrees with the finding.
Finding 2023-004: Federal Financial Reporting Requirements (Significant Deficiency) Federal Program: Assistance Listing Number 14.267 Criterion or Specific Requirements: Code of Federal Regulations (CFR) Section 200.303(b) requires non-Federal entities to establish and maintain effective internal control over Federal awards that provide reasonable assurance that the non-Federal entity is managing Federal awards in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. CFR Section 200.502(a) states that the determination of when a Federal award is expended should be based on when the activity related to the Federal award occurs. CFR Section 200.510 states that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with CFR Section 200.502. Condition: The schedule of expenditures of Federal awards (SEFA) for the year ended June 30, 2023, was not supported by general ledger detail at the start of our audit in October 2023. Management had not originally allocated costs in the general ledger such that it supported the amounts on the SEFA. The allocation of costs in the general ledger was completed in January 2024. Questioned Costs: None Cause: IW originally prepared the SEFA without fully allocating all Federal award related costs in the general ledger. Effect or Potential Effect: The exclusion of certain allocated costs from the general ledger created variances when the SEFA was reconciled to the general ledger at the start of the audit in October 2023. Without remedy, this situation could have caused an inaccurate selection of audit samples for single audit testing. Recommendation: IW should implement a process for preparing the SEFA that includes fully allocating costs in the general ledger so as to support all amounts reported in the SEFA.
Finding 2023-004: Federal Financial Reporting Requirements (Significant Deficiency) Federal Program: Assistance Listing Number 14.267 Criterion or Specific Requirements: Code of Federal Regulations (CFR) Section 200.303(b) requires non-Federal entities to establish and maintain effective internal control over Federal awards that provide reasonable assurance that the non-Federal entity is managing Federal awards in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. CFR Section 200.502(a) states that the determination of when a Federal award is expended should be based on when the activity related to the Federal award occurs. CFR Section 200.510 states that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with CFR Section 200.502. Condition: The schedule of expenditures of Federal awards (SEFA) for the year ended June 30, 2023, was not supported by general ledger detail at the start of our audit in October 2023. Management had not originally allocated costs in the general ledger such that it supported the amounts on the SEFA. The allocation of costs in the general ledger was completed in January 2024. Questioned Costs: None Cause: IW originally prepared the SEFA without fully allocating all Federal award related costs in the general ledger. Effect or Potential Effect: The exclusion of certain allocated costs from the general ledger created variances when the SEFA was reconciled to the general ledger at the start of the audit in October 2023. Without remedy, this situation could have caused an inaccurate selection of audit samples for single audit testing. Recommendation: IW should implement a process for preparing the SEFA that includes fully allocating costs in the general ledger so as to support all amounts reported in the SEFA.
Assistance Listing, Federal Agency, and Program Name - 93.354 U.S. Department of Health and Human Services, Research & Development (R&D) Cluster, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response Federal Award Identification Number and Year - PH-2-533 Pass through Entity - Clemson University Finding Type - Significant deficiency Repeat Finding - No Criteria Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with § 200.502. Condition - The schedule of expenditures of federal awards (SEFA) was not complete. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Several versions of the SEFA were provided during the audit period and in the final review, the College identified a missing grant to be reported in the R&D cluster, which resulted in additional audit testing. For the R&D Cluster, ALN 93.354 (Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response), expenditures reported on the SEFA were understated by $229,506. Cause and Effect - Controls in place did not ensure the SEFA was completed in a timely manner and that it was complete and accurate. For the R&D Cluster, ALN 93.354 (Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response), expenditures reported on the SEFA were understated by $229,506. This error has has been corrected on the SEFA as of June 30, 2023. Recommendation - The College should implement process to ensure that the SEFA is prepared timely and that it is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The College will ensure that the schedule of federal awards (SEFA) is reviewed for completeness. Going forward, the SEFA will compared with the prior year SEFA and a separate schedule of new awards for the current fiscal period. The results of this comparison will be reviewed by the grants office, the controller’s office and the Vice President’s office. This will increase the level of reviews to a three tiered process which should address issues of completeness of the SEFA.
2023-01 - Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: The Code of Federal Regulation (CFR) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity’s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal agency provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance. Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets.Condition: During management’s preparation of the Schedule of Expenditures of Federal Awards (SEFA), the finance team of the Organization used a combination of cost center reports that identify Federal dollars spent throughout the year, reporting done by program management, and invoices billed to Federal agencies. The SEFA preparation and review process did not appropriately reflect total Federal Expenditures for the period covered. During our major program grant population completeness procedures, we identified expenditures of federal awards that had been excluded from the SEFA prepared by management. The SEFA, as presented in these financial statements has been adjusted to include an additional $13,012 of expenditures incurred for AL 93.391 versus what had been previously presented. Cause: Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain program management positions with the responsibility for submission and preparation of data for completion of the schedule of expenditures of federal awards (SEFA). As a result of these changes in staffing, management was unable to fully execute on its documented internal control policies regarding SEFA preparation. Accordingly, internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to personnel changes in the programmatic areas, responsible for submission of costs incurred for the SEFA. Effect: The SEFA provided for the audit was inaccurate for the reasons outlined in the condition section above. Failure to accurately report expenditures and programs on the SEFA result in audit adjustments. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above. Repeat Finding: This is a repeat finding. Recommendation: We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed, and that policies and procedures are followed on a consistent basis. This will ensure that Federal funds are reported accurately on the SEFA.Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action. The Organization’s corrective action plan is described in Management’s Corrective Action Plan included at page __ of this reporting package.
2023-01 - Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: The Code of Federal Regulation (CFR) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity’s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal agency provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance. Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets.Condition: During management’s preparation of the Schedule of Expenditures of Federal Awards (SEFA), the finance team of the Organization used a combination of cost center reports that identify Federal dollars spent throughout the year, reporting done by program management, and invoices billed to Federal agencies. The SEFA preparation and review process did not appropriately reflect total Federal Expenditures for the period covered. During our major program grant population completeness procedures, we identified expenditures of federal awards that had been excluded from the SEFA prepared by management. The SEFA, as presented in these financial statements has been adjusted to include an additional $13,012 of expenditures incurred for AL 93.391 versus what had been previously presented. Cause: Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain program management positions with the responsibility for submission and preparation of data for completion of the schedule of expenditures of federal awards (SEFA). As a result of these changes in staffing, management was unable to fully execute on its documented internal control policies regarding SEFA preparation. Accordingly, internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to personnel changes in the programmatic areas, responsible for submission of costs incurred for the SEFA. Effect: The SEFA provided for the audit was inaccurate for the reasons outlined in the condition section above. Failure to accurately report expenditures and programs on the SEFA result in audit adjustments. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above. Repeat Finding: This is a repeat finding. Recommendation: We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed, and that policies and procedures are followed on a consistent basis. This will ensure that Federal funds are reported accurately on the SEFA.Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action. The Organization’s corrective action plan is described in Management’s Corrective Action Plan included at page __ of this reporting package.
2023-01 - Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: The Code of Federal Regulation (CFR) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity’s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal agency provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance. Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets.Condition: During management’s preparation of the Schedule of Expenditures of Federal Awards (SEFA), the finance team of the Organization used a combination of cost center reports that identify Federal dollars spent throughout the year, reporting done by program management, and invoices billed to Federal agencies. The SEFA preparation and review process did not appropriately reflect total Federal Expenditures for the period covered. During our major program grant population completeness procedures, we identified expenditures of federal awards that had been excluded from the SEFA prepared by management. The SEFA, as presented in these financial statements has been adjusted to include an additional $13,012 of expenditures incurred for AL 93.391 versus what had been previously presented. Cause: Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain program management positions with the responsibility for submission and preparation of data for completion of the schedule of expenditures of federal awards (SEFA). As a result of these changes in staffing, management was unable to fully execute on its documented internal control policies regarding SEFA preparation. Accordingly, internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to personnel changes in the programmatic areas, responsible for submission of costs incurred for the SEFA. Effect: The SEFA provided for the audit was inaccurate for the reasons outlined in the condition section above. Failure to accurately report expenditures and programs on the SEFA result in audit adjustments. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above. Repeat Finding: This is a repeat finding. Recommendation: We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed, and that policies and procedures are followed on a consistent basis. This will ensure that Federal funds are reported accurately on the SEFA.Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action. The Organization’s corrective action plan is described in Management’s Corrective Action Plan included at page __ of this reporting package.
2023-01 - Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: The Code of Federal Regulation (CFR) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity’s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal agency provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance. Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets.Condition: During management’s preparation of the Schedule of Expenditures of Federal Awards (SEFA), the finance team of the Organization used a combination of cost center reports that identify Federal dollars spent throughout the year, reporting done by program management, and invoices billed to Federal agencies. The SEFA preparation and review process did not appropriately reflect total Federal Expenditures for the period covered. During our major program grant population completeness procedures, we identified expenditures of federal awards that had been excluded from the SEFA prepared by management. The SEFA, as presented in these financial statements has been adjusted to include an additional $13,012 of expenditures incurred for AL 93.391 versus what had been previously presented. Cause: Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain program management positions with the responsibility for submission and preparation of data for completion of the schedule of expenditures of federal awards (SEFA). As a result of these changes in staffing, management was unable to fully execute on its documented internal control policies regarding SEFA preparation. Accordingly, internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to personnel changes in the programmatic areas, responsible for submission of costs incurred for the SEFA. Effect: The SEFA provided for the audit was inaccurate for the reasons outlined in the condition section above. Failure to accurately report expenditures and programs on the SEFA result in audit adjustments. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above. Repeat Finding: This is a repeat finding. Recommendation: We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed, and that policies and procedures are followed on a consistent basis. This will ensure that Federal funds are reported accurately on the SEFA.Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action. The Organization’s corrective action plan is described in Management’s Corrective Action Plan included at page __ of this reporting package.
2023-01 - Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: The Code of Federal Regulation (CFR) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity’s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal agency provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance. Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets.Condition: During management’s preparation of the Schedule of Expenditures of Federal Awards (SEFA), the finance team of the Organization used a combination of cost center reports that identify Federal dollars spent throughout the year, reporting done by program management, and invoices billed to Federal agencies. The SEFA preparation and review process did not appropriately reflect total Federal Expenditures for the period covered. During our major program grant population completeness procedures, we identified expenditures of federal awards that had been excluded from the SEFA prepared by management. The SEFA, as presented in these financial statements has been adjusted to include an additional $13,012 of expenditures incurred for AL 93.391 versus what had been previously presented. Cause: Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain program management positions with the responsibility for submission and preparation of data for completion of the schedule of expenditures of federal awards (SEFA). As a result of these changes in staffing, management was unable to fully execute on its documented internal control policies regarding SEFA preparation. Accordingly, internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to personnel changes in the programmatic areas, responsible for submission of costs incurred for the SEFA. Effect: The SEFA provided for the audit was inaccurate for the reasons outlined in the condition section above. Failure to accurately report expenditures and programs on the SEFA result in audit adjustments. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above. Repeat Finding: This is a repeat finding. Recommendation: We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed, and that policies and procedures are followed on a consistent basis. This will ensure that Federal funds are reported accurately on the SEFA.Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action. The Organization’s corrective action plan is described in Management’s Corrective Action Plan included at page __ of this reporting package.
2023-01 - Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: The Code of Federal Regulation (CFR) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity’s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal agency provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance. Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets.Condition: During management’s preparation of the Schedule of Expenditures of Federal Awards (SEFA), the finance team of the Organization used a combination of cost center reports that identify Federal dollars spent throughout the year, reporting done by program management, and invoices billed to Federal agencies. The SEFA preparation and review process did not appropriately reflect total Federal Expenditures for the period covered. During our major program grant population completeness procedures, we identified expenditures of federal awards that had been excluded from the SEFA prepared by management. The SEFA, as presented in these financial statements has been adjusted to include an additional $13,012 of expenditures incurred for AL 93.391 versus what had been previously presented. Cause: Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain program management positions with the responsibility for submission and preparation of data for completion of the schedule of expenditures of federal awards (SEFA). As a result of these changes in staffing, management was unable to fully execute on its documented internal control policies regarding SEFA preparation. Accordingly, internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to personnel changes in the programmatic areas, responsible for submission of costs incurred for the SEFA. Effect: The SEFA provided for the audit was inaccurate for the reasons outlined in the condition section above. Failure to accurately report expenditures and programs on the SEFA result in audit adjustments. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above. Repeat Finding: This is a repeat finding. Recommendation: We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed, and that policies and procedures are followed on a consistent basis. This will ensure that Federal funds are reported accurately on the SEFA.Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action. The Organization’s corrective action plan is described in Management’s Corrective Action Plan included at page __ of this reporting package.
2023-01 - Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: The Code of Federal Regulation (CFR) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity’s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal agency provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance. Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets.Condition: During management’s preparation of the Schedule of Expenditures of Federal Awards (SEFA), the finance team of the Organization used a combination of cost center reports that identify Federal dollars spent throughout the year, reporting done by program management, and invoices billed to Federal agencies. The SEFA preparation and review process did not appropriately reflect total Federal Expenditures for the period covered. During our major program grant population completeness procedures, we identified expenditures of federal awards that had been excluded from the SEFA prepared by management. The SEFA, as presented in these financial statements has been adjusted to include an additional $13,012 of expenditures incurred for AL 93.391 versus what had been previously presented. Cause: Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain program management positions with the responsibility for submission and preparation of data for completion of the schedule of expenditures of federal awards (SEFA). As a result of these changes in staffing, management was unable to fully execute on its documented internal control policies regarding SEFA preparation. Accordingly, internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to personnel changes in the programmatic areas, responsible for submission of costs incurred for the SEFA. Effect: The SEFA provided for the audit was inaccurate for the reasons outlined in the condition section above. Failure to accurately report expenditures and programs on the SEFA result in audit adjustments. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above. Repeat Finding: This is a repeat finding. Recommendation: We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed, and that policies and procedures are followed on a consistent basis. This will ensure that Federal funds are reported accurately on the SEFA.Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action. The Organization’s corrective action plan is described in Management’s Corrective Action Plan included at page __ of this reporting package.
2023-01 - Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: The Code of Federal Regulation (CFR) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity’s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal agency provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance. Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets.Condition: During management’s preparation of the Schedule of Expenditures of Federal Awards (SEFA), the finance team of the Organization used a combination of cost center reports that identify Federal dollars spent throughout the year, reporting done by program management, and invoices billed to Federal agencies. The SEFA preparation and review process did not appropriately reflect total Federal Expenditures for the period covered. During our major program grant population completeness procedures, we identified expenditures of federal awards that had been excluded from the SEFA prepared by management. The SEFA, as presented in these financial statements has been adjusted to include an additional $13,012 of expenditures incurred for AL 93.391 versus what had been previously presented. Cause: Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain program management positions with the responsibility for submission and preparation of data for completion of the schedule of expenditures of federal awards (SEFA). As a result of these changes in staffing, management was unable to fully execute on its documented internal control policies regarding SEFA preparation. Accordingly, internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to personnel changes in the programmatic areas, responsible for submission of costs incurred for the SEFA. Effect: The SEFA provided for the audit was inaccurate for the reasons outlined in the condition section above. Failure to accurately report expenditures and programs on the SEFA result in audit adjustments. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above. Repeat Finding: This is a repeat finding. Recommendation: We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed, and that policies and procedures are followed on a consistent basis. This will ensure that Federal funds are reported accurately on the SEFA.Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action. The Organization’s corrective action plan is described in Management’s Corrective Action Plan included at page __ of this reporting package.
2023-01 - Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: The Code of Federal Regulation (CFR) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity’s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal agency provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance. Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets.Condition: During management’s preparation of the Schedule of Expenditures of Federal Awards (SEFA), the finance team of the Organization used a combination of cost center reports that identify Federal dollars spent throughout the year, reporting done by program management, and invoices billed to Federal agencies. The SEFA preparation and review process did not appropriately reflect total Federal Expenditures for the period covered. During our major program grant population completeness procedures, we identified expenditures of federal awards that had been excluded from the SEFA prepared by management. The SEFA, as presented in these financial statements has been adjusted to include an additional $13,012 of expenditures incurred for AL 93.391 versus what had been previously presented. Cause: Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain program management positions with the responsibility for submission and preparation of data for completion of the schedule of expenditures of federal awards (SEFA). As a result of these changes in staffing, management was unable to fully execute on its documented internal control policies regarding SEFA preparation. Accordingly, internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to personnel changes in the programmatic areas, responsible for submission of costs incurred for the SEFA. Effect: The SEFA provided for the audit was inaccurate for the reasons outlined in the condition section above. Failure to accurately report expenditures and programs on the SEFA result in audit adjustments. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above. Repeat Finding: This is a repeat finding. Recommendation: We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed, and that policies and procedures are followed on a consistent basis. This will ensure that Federal funds are reported accurately on the SEFA.Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action. The Organization’s corrective action plan is described in Management’s Corrective Action Plan included at page __ of this reporting package.
2023-01 - Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: The Code of Federal Regulation (CFR) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity’s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal agency provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance. Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets.Condition: During management’s preparation of the Schedule of Expenditures of Federal Awards (SEFA), the finance team of the Organization used a combination of cost center reports that identify Federal dollars spent throughout the year, reporting done by program management, and invoices billed to Federal agencies. The SEFA preparation and review process did not appropriately reflect total Federal Expenditures for the period covered. During our major program grant population completeness procedures, we identified expenditures of federal awards that had been excluded from the SEFA prepared by management. The SEFA, as presented in these financial statements has been adjusted to include an additional $13,012 of expenditures incurred for AL 93.391 versus what had been previously presented. Cause: Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain program management positions with the responsibility for submission and preparation of data for completion of the schedule of expenditures of federal awards (SEFA). As a result of these changes in staffing, management was unable to fully execute on its documented internal control policies regarding SEFA preparation. Accordingly, internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to personnel changes in the programmatic areas, responsible for submission of costs incurred for the SEFA. Effect: The SEFA provided for the audit was inaccurate for the reasons outlined in the condition section above. Failure to accurately report expenditures and programs on the SEFA result in audit adjustments. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above. Repeat Finding: This is a repeat finding. Recommendation: We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed, and that policies and procedures are followed on a consistent basis. This will ensure that Federal funds are reported accurately on the SEFA.Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action. The Organization’s corrective action plan is described in Management’s Corrective Action Plan included at page __ of this reporting package.
2023-01 - Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: The Code of Federal Regulation (CFR) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity’s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal agency provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance. Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets.Condition: During management’s preparation of the Schedule of Expenditures of Federal Awards (SEFA), the finance team of the Organization used a combination of cost center reports that identify Federal dollars spent throughout the year, reporting done by program management, and invoices billed to Federal agencies. The SEFA preparation and review process did not appropriately reflect total Federal Expenditures for the period covered. During our major program grant population completeness procedures, we identified expenditures of federal awards that had been excluded from the SEFA prepared by management. The SEFA, as presented in these financial statements has been adjusted to include an additional $13,012 of expenditures incurred for AL 93.391 versus what had been previously presented. Cause: Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain program management positions with the responsibility for submission and preparation of data for completion of the schedule of expenditures of federal awards (SEFA). As a result of these changes in staffing, management was unable to fully execute on its documented internal control policies regarding SEFA preparation. Accordingly, internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to personnel changes in the programmatic areas, responsible for submission of costs incurred for the SEFA. Effect: The SEFA provided for the audit was inaccurate for the reasons outlined in the condition section above. Failure to accurately report expenditures and programs on the SEFA result in audit adjustments. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above. Repeat Finding: This is a repeat finding. Recommendation: We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed, and that policies and procedures are followed on a consistent basis. This will ensure that Federal funds are reported accurately on the SEFA.Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action. The Organization’s corrective action plan is described in Management’s Corrective Action Plan included at page __ of this reporting package.
2023-002 - Internal Control over Compliance and Compliance with Reporting Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: In accordance with CFR §200.303(a), Internal Controls, the 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)…”Additionally, in accordance with CFR §200.303(a), Monitoring and reporting program performance, the non-Federal entity is responsible for oversight of the operations of the Federal award supported activities. The non-Federal entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Monitoring by the non-Federal entity must cover each program, function or activity…”CFR Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance.Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets. United Way of Greater Cleveland is required to submit its Single Audit Report to the Federal Audit Clearinghouse within 30 calendar days after the receipt of the Auditor’s report, or within nine months after the close of the Auditee’s fiscal year, whichever is earlier. Condition: Therefore, the submission to the Federal Audit Clearing House is subsequent to both 30 days from the date of the receipt of the financial statements and nine months after year end and is therefore considered a late submission. Cause: During the year ended June 30, 2023, United way of Greater Cleveland migrated general ledger financial reporting systems, which caused delays in the closing and financial audit process. Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain programmatic staff, which further delayed certain procedures related to ensuring sufficiency and accuracy of the SEFA, thus causing delays in the audit process. Effect: There was no effect due to the late submission of the report. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above.Repeat Finding: his is not a repeat finding. Recommendation:We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed and on a timely basis to allow for prompt submission to the FAC. Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action.
2023-002 - Internal Control over Compliance and Compliance with Reporting Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: In accordance with CFR §200.303(a), Internal Controls, the 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)…”Additionally, in accordance with CFR §200.303(a), Monitoring and reporting program performance, the non-Federal entity is responsible for oversight of the operations of the Federal award supported activities. The non-Federal entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Monitoring by the non-Federal entity must cover each program, function or activity…”CFR Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance.Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets. United Way of Greater Cleveland is required to submit its Single Audit Report to the Federal Audit Clearinghouse within 30 calendar days after the receipt of the Auditor’s report, or within nine months after the close of the Auditee’s fiscal year, whichever is earlier. Condition: Therefore, the submission to the Federal Audit Clearing House is subsequent to both 30 days from the date of the receipt of the financial statements and nine months after year end and is therefore considered a late submission. Cause: During the year ended June 30, 2023, United way of Greater Cleveland migrated general ledger financial reporting systems, which caused delays in the closing and financial audit process. Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain programmatic staff, which further delayed certain procedures related to ensuring sufficiency and accuracy of the SEFA, thus causing delays in the audit process. Effect: There was no effect due to the late submission of the report. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above.Repeat Finding: his is not a repeat finding. Recommendation:We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed and on a timely basis to allow for prompt submission to the FAC. Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action.
2023-002 - Internal Control over Compliance and Compliance with Reporting Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: In accordance with CFR §200.303(a), Internal Controls, the 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)…”Additionally, in accordance with CFR §200.303(a), Monitoring and reporting program performance, the non-Federal entity is responsible for oversight of the operations of the Federal award supported activities. The non-Federal entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Monitoring by the non-Federal entity must cover each program, function or activity…”CFR Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance.Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets. United Way of Greater Cleveland is required to submit its Single Audit Report to the Federal Audit Clearinghouse within 30 calendar days after the receipt of the Auditor’s report, or within nine months after the close of the Auditee’s fiscal year, whichever is earlier. Condition: Therefore, the submission to the Federal Audit Clearing House is subsequent to both 30 days from the date of the receipt of the financial statements and nine months after year end and is therefore considered a late submission. Cause: During the year ended June 30, 2023, United way of Greater Cleveland migrated general ledger financial reporting systems, which caused delays in the closing and financial audit process. Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain programmatic staff, which further delayed certain procedures related to ensuring sufficiency and accuracy of the SEFA, thus causing delays in the audit process. Effect: There was no effect due to the late submission of the report. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above.Repeat Finding: his is not a repeat finding. Recommendation:We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed and on a timely basis to allow for prompt submission to the FAC. Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action.
2023-002 - Internal Control over Compliance and Compliance with Reporting Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: In accordance with CFR §200.303(a), Internal Controls, the 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)…”Additionally, in accordance with CFR §200.303(a), Monitoring and reporting program performance, the non-Federal entity is responsible for oversight of the operations of the Federal award supported activities. The non-Federal entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Monitoring by the non-Federal entity must cover each program, function or activity…”CFR Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance.Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets. United Way of Greater Cleveland is required to submit its Single Audit Report to the Federal Audit Clearinghouse within 30 calendar days after the receipt of the Auditor’s report, or within nine months after the close of the Auditee’s fiscal year, whichever is earlier. Condition: Therefore, the submission to the Federal Audit Clearing House is subsequent to both 30 days from the date of the receipt of the financial statements and nine months after year end and is therefore considered a late submission. Cause: During the year ended June 30, 2023, United way of Greater Cleveland migrated general ledger financial reporting systems, which caused delays in the closing and financial audit process. Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain programmatic staff, which further delayed certain procedures related to ensuring sufficiency and accuracy of the SEFA, thus causing delays in the audit process. Effect: There was no effect due to the late submission of the report. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above.Repeat Finding: his is not a repeat finding. Recommendation:We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed and on a timely basis to allow for prompt submission to the FAC. Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action.
2023-002 - Internal Control over Compliance and Compliance with Reporting Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: In accordance with CFR §200.303(a), Internal Controls, the 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)…”Additionally, in accordance with CFR §200.303(a), Monitoring and reporting program performance, the non-Federal entity is responsible for oversight of the operations of the Federal award supported activities. The non-Federal entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Monitoring by the non-Federal entity must cover each program, function or activity…”CFR Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance.Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets. United Way of Greater Cleveland is required to submit its Single Audit Report to the Federal Audit Clearinghouse within 30 calendar days after the receipt of the Auditor’s report, or within nine months after the close of the Auditee’s fiscal year, whichever is earlier. Condition: Therefore, the submission to the Federal Audit Clearing House is subsequent to both 30 days from the date of the receipt of the financial statements and nine months after year end and is therefore considered a late submission. Cause: During the year ended June 30, 2023, United way of Greater Cleveland migrated general ledger financial reporting systems, which caused delays in the closing and financial audit process. Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain programmatic staff, which further delayed certain procedures related to ensuring sufficiency and accuracy of the SEFA, thus causing delays in the audit process. Effect: There was no effect due to the late submission of the report. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above.Repeat Finding: his is not a repeat finding. Recommendation:We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed and on a timely basis to allow for prompt submission to the FAC. Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action.
2023-002 - Internal Control over Compliance and Compliance with Reporting Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: In accordance with CFR §200.303(a), Internal Controls, the 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)…”Additionally, in accordance with CFR §200.303(a), Monitoring and reporting program performance, the non-Federal entity is responsible for oversight of the operations of the Federal award supported activities. The non-Federal entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Monitoring by the non-Federal entity must cover each program, function or activity…”CFR Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance.Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets. United Way of Greater Cleveland is required to submit its Single Audit Report to the Federal Audit Clearinghouse within 30 calendar days after the receipt of the Auditor’s report, or within nine months after the close of the Auditee’s fiscal year, whichever is earlier. Condition: Therefore, the submission to the Federal Audit Clearing House is subsequent to both 30 days from the date of the receipt of the financial statements and nine months after year end and is therefore considered a late submission. Cause: During the year ended June 30, 2023, United way of Greater Cleveland migrated general ledger financial reporting systems, which caused delays in the closing and financial audit process. Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain programmatic staff, which further delayed certain procedures related to ensuring sufficiency and accuracy of the SEFA, thus causing delays in the audit process. Effect: There was no effect due to the late submission of the report. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above.Repeat Finding: his is not a repeat finding. Recommendation:We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed and on a timely basis to allow for prompt submission to the FAC. Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action.
2023-002 - Internal Control over Compliance and Compliance with Reporting Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: In accordance with CFR §200.303(a), Internal Controls, the 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)…”Additionally, in accordance with CFR §200.303(a), Monitoring and reporting program performance, the non-Federal entity is responsible for oversight of the operations of the Federal award supported activities. The non-Federal entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Monitoring by the non-Federal entity must cover each program, function or activity…”CFR Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance.Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets. United Way of Greater Cleveland is required to submit its Single Audit Report to the Federal Audit Clearinghouse within 30 calendar days after the receipt of the Auditor’s report, or within nine months after the close of the Auditee’s fiscal year, whichever is earlier. Condition: Therefore, the submission to the Federal Audit Clearing House is subsequent to both 30 days from the date of the receipt of the financial statements and nine months after year end and is therefore considered a late submission. Cause: During the year ended June 30, 2023, United way of Greater Cleveland migrated general ledger financial reporting systems, which caused delays in the closing and financial audit process. Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain programmatic staff, which further delayed certain procedures related to ensuring sufficiency and accuracy of the SEFA, thus causing delays in the audit process. Effect: There was no effect due to the late submission of the report. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above.Repeat Finding: his is not a repeat finding. Recommendation:We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed and on a timely basis to allow for prompt submission to the FAC. Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action.
2023-002 - Internal Control over Compliance and Compliance with Reporting Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: In accordance with CFR §200.303(a), Internal Controls, the 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)…”Additionally, in accordance with CFR §200.303(a), Monitoring and reporting program performance, the non-Federal entity is responsible for oversight of the operations of the Federal award supported activities. The non-Federal entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Monitoring by the non-Federal entity must cover each program, function or activity…”CFR Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance.Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets. United Way of Greater Cleveland is required to submit its Single Audit Report to the Federal Audit Clearinghouse within 30 calendar days after the receipt of the Auditor’s report, or within nine months after the close of the Auditee’s fiscal year, whichever is earlier. Condition: Therefore, the submission to the Federal Audit Clearing House is subsequent to both 30 days from the date of the receipt of the financial statements and nine months after year end and is therefore considered a late submission. Cause: During the year ended June 30, 2023, United way of Greater Cleveland migrated general ledger financial reporting systems, which caused delays in the closing and financial audit process. Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain programmatic staff, which further delayed certain procedures related to ensuring sufficiency and accuracy of the SEFA, thus causing delays in the audit process. Effect: There was no effect due to the late submission of the report. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above.Repeat Finding: his is not a repeat finding. Recommendation:We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed and on a timely basis to allow for prompt submission to the FAC. Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action.
2023-002 - Internal Control over Compliance and Compliance with Reporting Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: In accordance with CFR §200.303(a), Internal Controls, the 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)…”Additionally, in accordance with CFR §200.303(a), Monitoring and reporting program performance, the non-Federal entity is responsible for oversight of the operations of the Federal award supported activities. The non-Federal entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Monitoring by the non-Federal entity must cover each program, function or activity…”CFR Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance.Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets. United Way of Greater Cleveland is required to submit its Single Audit Report to the Federal Audit Clearinghouse within 30 calendar days after the receipt of the Auditor’s report, or within nine months after the close of the Auditee’s fiscal year, whichever is earlier. Condition: Therefore, the submission to the Federal Audit Clearing House is subsequent to both 30 days from the date of the receipt of the financial statements and nine months after year end and is therefore considered a late submission. Cause: During the year ended June 30, 2023, United way of Greater Cleveland migrated general ledger financial reporting systems, which caused delays in the closing and financial audit process. Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain programmatic staff, which further delayed certain procedures related to ensuring sufficiency and accuracy of the SEFA, thus causing delays in the audit process. Effect: There was no effect due to the late submission of the report. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above.Repeat Finding: his is not a repeat finding. Recommendation:We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed and on a timely basis to allow for prompt submission to the FAC. Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action.
2023-002 - Internal Control over Compliance and Compliance with Reporting Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: In accordance with CFR §200.303(a), Internal Controls, the 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)…”Additionally, in accordance with CFR §200.303(a), Monitoring and reporting program performance, the non-Federal entity is responsible for oversight of the operations of the Federal award supported activities. The non-Federal entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Monitoring by the non-Federal entity must cover each program, function or activity…”CFR Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance.Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets. United Way of Greater Cleveland is required to submit its Single Audit Report to the Federal Audit Clearinghouse within 30 calendar days after the receipt of the Auditor’s report, or within nine months after the close of the Auditee’s fiscal year, whichever is earlier. Condition: Therefore, the submission to the Federal Audit Clearing House is subsequent to both 30 days from the date of the receipt of the financial statements and nine months after year end and is therefore considered a late submission. Cause: During the year ended June 30, 2023, United way of Greater Cleveland migrated general ledger financial reporting systems, which caused delays in the closing and financial audit process. Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain programmatic staff, which further delayed certain procedures related to ensuring sufficiency and accuracy of the SEFA, thus causing delays in the audit process. Effect: There was no effect due to the late submission of the report. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above.Repeat Finding: his is not a repeat finding. Recommendation:We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed and on a timely basis to allow for prompt submission to the FAC. Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action.
2023-002 - Internal Control over Compliance and Compliance with Reporting Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Numbers: 93.650 Accountable Health Communities 93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises 93.558 Temporary Assistance for Needy Families 93.667 Social Services Block Grant 93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support 93.268 Immunization Cooperative Agreements United States Department of Housing and Urban Development Assistance Listing Number: 14.218 Community Development Block Grants United States Department of Homeland Security Assistance Listing Number: 97.024 Emergency Food and Shelter Criteria: In accordance with CFR §200.303(a), Internal Controls, the 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)…”Additionally, in accordance with CFR §200.303(a), Monitoring and reporting program performance, the non-Federal entity is responsible for oversight of the operations of the Federal award supported activities. The non-Federal entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Monitoring by the non-Federal entity must cover each program, function or activity…”CFR Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with CFR §200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.328 Financial Reporting and §200.329 Monitoring and Reporting Program Performance.Records that identify adequately the source and application of funds for federally funded activities. Effective control over, and accountability for, all funds, property, and other assets. United Way of Greater Cleveland is required to submit its Single Audit Report to the Federal Audit Clearinghouse within 30 calendar days after the receipt of the Auditor’s report, or within nine months after the close of the Auditee’s fiscal year, whichever is earlier. Condition: Therefore, the submission to the Federal Audit Clearing House is subsequent to both 30 days from the date of the receipt of the financial statements and nine months after year end and is therefore considered a late submission. Cause: During the year ended June 30, 2023, United way of Greater Cleveland migrated general ledger financial reporting systems, which caused delays in the closing and financial audit process. Subsequent to June 30, 2023, United Way of Greater Cleveland experienced turnover in certain programmatic staff, which further delayed certain procedures related to ensuring sufficiency and accuracy of the SEFA, thus causing delays in the audit process. Effect: There was no effect due to the late submission of the report. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the United Way of Greater Cleveland’s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above.Repeat Finding: his is not a repeat finding. Recommendation:We recommend management address the staffing considerations to ensure the documented policies and procedures can be performed as prescribed and on a timely basis to allow for prompt submission to the FAC. Views of Responsible Officials: United Way of Greater Cleveland’s management agrees with the finding and recommendations set forth within and has developed a corrective action.
Finding 2023-001 Material Weakness: Schedule of Expenditures of Federal Awards (SEFA) – Control Finding Criteria Or Specific Requirement: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) provides guidance related to preparation and reporting of the SEFA. 2 CFR Section 200.100 identifies the required elements of the SEFA and 2 CFR Section 200.510 specifically requires that the SEFA include information on each federal award expended during the year. Southwest Organizing Project (the Project) is required to prepare a complete and accurate SEFA and to have a system of internal controls, the design and operation of which allows management or employees in the normal course of performing their assigned functions to prevent, or detect and correct, errors on a timely basis. Condition: The SEFA was incomplete and contained inaccurate assistance listing numbers. Additionally, federal programs were excluded from the SEFA in error and federal expenditures included unallowable amounts. As a result, while not material to the financial statements, the SFEA required material adjustments during the audit process. Cause: Management does not have an internal control process in place to ensure an accurate SEFA. Effect: The possibility exists that errors within the SEFA could become material to the financial statements or result in an incorrect major program determination. Questioned Costs: Not applicable Context: A sufficient review of the SEFA did not occur so errors were not detected by management. Identification As A Repeat Finding: N/A Recommendation: The Project should strengthen its internal controls by implementing additional training and oversight of personnel to ensure the SEFA accurately reflects federal expenditures for the fiscal year. Views Of Responsible Officials And Planned Corrective Action: An adequate system of internal controls will be put in place by the end of fiscal year 2024. To ensure SEFA will include accurate assisting listing numbers and accurate inclusion of all federal programs. Allowable and unallowable costs will be reviewed to ensure accurate federal expenditure reporting. Management will perform an exhaustive review of all grants to close out the fiscal year in preparation for the audit process. In addition to these, SWOP will work with a consultant to provide necessary training of finance personnel.
Finding 2023-001 Material Weakness: Schedule of Expenditures of Federal Awards (SEFA) – Control Finding Criteria Or Specific Requirement: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) provides guidance related to preparation and reporting of the SEFA. 2 CFR Section 200.100 identifies the required elements of the SEFA and 2 CFR Section 200.510 specifically requires that the SEFA include information on each federal award expended during the year. Southwest Organizing Project (the Project) is required to prepare a complete and accurate SEFA and to have a system of internal controls, the design and operation of which allows management or employees in the normal course of performing their assigned functions to prevent, or detect and correct, errors on a timely basis. Condition: The SEFA was incomplete and contained inaccurate assistance listing numbers. Additionally, federal programs were excluded from the SEFA in error and federal expenditures included unallowable amounts. As a result, while not material to the financial statements, the SFEA required material adjustments during the audit process. Cause: Management does not have an internal control process in place to ensure an accurate SEFA. Effect: The possibility exists that errors within the SEFA could become material to the financial statements or result in an incorrect major program determination. Questioned Costs: Not applicable Context: A sufficient review of the SEFA did not occur so errors were not detected by management. Identification As A Repeat Finding: N/A Recommendation: The Project should strengthen its internal controls by implementing additional training and oversight of personnel to ensure the SEFA accurately reflects federal expenditures for the fiscal year. Views Of Responsible Officials And Planned Corrective Action: An adequate system of internal controls will be put in place by the end of fiscal year 2024. To ensure SEFA will include accurate assisting listing numbers and accurate inclusion of all federal programs. Allowable and unallowable costs will be reviewed to ensure accurate federal expenditure reporting. Management will perform an exhaustive review of all grants to close out the fiscal year in preparation for the audit process. In addition to these, SWOP will work with a consultant to provide necessary training of finance personnel.
Finding 2023-001 Material Weakness: Schedule of Expenditures of Federal Awards (SEFA) – Control Finding Criteria Or Specific Requirement: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) provides guidance related to preparation and reporting of the SEFA. 2 CFR Section 200.100 identifies the required elements of the SEFA and 2 CFR Section 200.510 specifically requires that the SEFA include information on each federal award expended during the year. Southwest Organizing Project (the Project) is required to prepare a complete and accurate SEFA and to have a system of internal controls, the design and operation of which allows management or employees in the normal course of performing their assigned functions to prevent, or detect and correct, errors on a timely basis. Condition: The SEFA was incomplete and contained inaccurate assistance listing numbers. Additionally, federal programs were excluded from the SEFA in error and federal expenditures included unallowable amounts. As a result, while not material to the financial statements, the SFEA required material adjustments during the audit process. Cause: Management does not have an internal control process in place to ensure an accurate SEFA. Effect: The possibility exists that errors within the SEFA could become material to the financial statements or result in an incorrect major program determination. Questioned Costs: Not applicable Context: A sufficient review of the SEFA did not occur so errors were not detected by management. Identification As A Repeat Finding: N/A Recommendation: The Project should strengthen its internal controls by implementing additional training and oversight of personnel to ensure the SEFA accurately reflects federal expenditures for the fiscal year. Views Of Responsible Officials And Planned Corrective Action: An adequate system of internal controls will be put in place by the end of fiscal year 2024. To ensure SEFA will include accurate assisting listing numbers and accurate inclusion of all federal programs. Allowable and unallowable costs will be reviewed to ensure accurate federal expenditure reporting. Management will perform an exhaustive review of all grants to close out the fiscal year in preparation for the audit process. In addition to these, SWOP will work with a consultant to provide necessary training of finance personnel.
Finding 2023-001 Material Weakness: Schedule of Expenditures of Federal Awards (SEFA) – Control Finding Criteria Or Specific Requirement: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) provides guidance related to preparation and reporting of the SEFA. 2 CFR Section 200.100 identifies the required elements of the SEFA and 2 CFR Section 200.510 specifically requires that the SEFA include information on each federal award expended during the year. Southwest Organizing Project (the Project) is required to prepare a complete and accurate SEFA and to have a system of internal controls, the design and operation of which allows management or employees in the normal course of performing their assigned functions to prevent, or detect and correct, errors on a timely basis. Condition: The SEFA was incomplete and contained inaccurate assistance listing numbers. Additionally, federal programs were excluded from the SEFA in error and federal expenditures included unallowable amounts. As a result, while not material to the financial statements, the SFEA required material adjustments during the audit process. Cause: Management does not have an internal control process in place to ensure an accurate SEFA. Effect: The possibility exists that errors within the SEFA could become material to the financial statements or result in an incorrect major program determination. Questioned Costs: Not applicable Context: A sufficient review of the SEFA did not occur so errors were not detected by management. Identification As A Repeat Finding: N/A Recommendation: The Project should strengthen its internal controls by implementing additional training and oversight of personnel to ensure the SEFA accurately reflects federal expenditures for the fiscal year. Views Of Responsible Officials And Planned Corrective Action: An adequate system of internal controls will be put in place by the end of fiscal year 2024. To ensure SEFA will include accurate assisting listing numbers and accurate inclusion of all federal programs. Allowable and unallowable costs will be reviewed to ensure accurate federal expenditure reporting. Management will perform an exhaustive review of all grants to close out the fiscal year in preparation for the audit process. In addition to these, SWOP will work with a consultant to provide necessary training of finance personnel.
Finding 2023-001 Material Weakness: Schedule of Expenditures of Federal Awards (SEFA) – Control Finding Criteria Or Specific Requirement: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) provides guidance related to preparation and reporting of the SEFA. 2 CFR Section 200.100 identifies the required elements of the SEFA and 2 CFR Section 200.510 specifically requires that the SEFA include information on each federal award expended during the year. Southwest Organizing Project (the Project) is required to prepare a complete and accurate SEFA and to have a system of internal controls, the design and operation of which allows management or employees in the normal course of performing their assigned functions to prevent, or detect and correct, errors on a timely basis. Condition: The SEFA was incomplete and contained inaccurate assistance listing numbers. Additionally, federal programs were excluded from the SEFA in error and federal expenditures included unallowable amounts. As a result, while not material to the financial statements, the SFEA required material adjustments during the audit process. Cause: Management does not have an internal control process in place to ensure an accurate SEFA. Effect: The possibility exists that errors within the SEFA could become material to the financial statements or result in an incorrect major program determination. Questioned Costs: Not applicable Context: A sufficient review of the SEFA did not occur so errors were not detected by management. Identification As A Repeat Finding: N/A Recommendation: The Project should strengthen its internal controls by implementing additional training and oversight of personnel to ensure the SEFA accurately reflects federal expenditures for the fiscal year. Views Of Responsible Officials And Planned Corrective Action: An adequate system of internal controls will be put in place by the end of fiscal year 2024. To ensure SEFA will include accurate assisting listing numbers and accurate inclusion of all federal programs. Allowable and unallowable costs will be reviewed to ensure accurate federal expenditure reporting. Management will perform an exhaustive review of all grants to close out the fiscal year in preparation for the audit process. In addition to these, SWOP will work with a consultant to provide necessary training of finance personnel.
Finding 2023-001 Material Weakness: Schedule of Expenditures of Federal Awards (SEFA) – Control Finding Criteria Or Specific Requirement: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) provides guidance related to preparation and reporting of the SEFA. 2 CFR Section 200.100 identifies the required elements of the SEFA and 2 CFR Section 200.510 specifically requires that the SEFA include information on each federal award expended during the year. Southwest Organizing Project (the Project) is required to prepare a complete and accurate SEFA and to have a system of internal controls, the design and operation of which allows management or employees in the normal course of performing their assigned functions to prevent, or detect and correct, errors on a timely basis. Condition: The SEFA was incomplete and contained inaccurate assistance listing numbers. Additionally, federal programs were excluded from the SEFA in error and federal expenditures included unallowable amounts. As a result, while not material to the financial statements, the SFEA required material adjustments during the audit process. Cause: Management does not have an internal control process in place to ensure an accurate SEFA. Effect: The possibility exists that errors within the SEFA could become material to the financial statements or result in an incorrect major program determination. Questioned Costs: Not applicable Context: A sufficient review of the SEFA did not occur so errors were not detected by management. Identification As A Repeat Finding: N/A Recommendation: The Project should strengthen its internal controls by implementing additional training and oversight of personnel to ensure the SEFA accurately reflects federal expenditures for the fiscal year. Views Of Responsible Officials And Planned Corrective Action: An adequate system of internal controls will be put in place by the end of fiscal year 2024. To ensure SEFA will include accurate assisting listing numbers and accurate inclusion of all federal programs. Allowable and unallowable costs will be reviewed to ensure accurate federal expenditure reporting. Management will perform an exhaustive review of all grants to close out the fiscal year in preparation for the audit process. In addition to these, SWOP will work with a consultant to provide necessary training of finance personnel.
Criteria: 2 CFR 200.510(b) requires the auditee to prepare a schedule of federal awards (SEFA) that must contain federal awards expended during the period. Condition: On the original SEFA provided for the audit, the total federal expenditures reflected on the SEFA were inaccurate with excess amounts for some programs and the programs 21.027 and 10.561 were omitted on the initial SEFA report. This resulted in a restatement of the SEFA. Cause: Due to staff turnover, staff was unfamiliar with the specifics of the grant. Effect: SEFA was inaccurate. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.510(b) requires the auditee to prepare a schedule of federal awards (SEFA) that must contain federal awards expended during the period. Condition: On the original SEFA provided for the audit, the total federal expenditures reflected on the SEFA were inaccurate with excess amounts for some programs and the programs 21.027 and 10.561 were omitted on the initial SEFA report. This resulted in a restatement of the SEFA. Cause: Due to staff turnover, staff was unfamiliar with the specifics of the grant. Effect: SEFA was inaccurate. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.510(b) requires the auditee to prepare a schedule of federal awards (SEFA) that must contain federal awards expended during the period. Condition: On the original SEFA provided for the audit, the total federal expenditures reflected on the SEFA were inaccurate with excess amounts for some programs and the programs 21.027 and 10.561 were omitted on the initial SEFA report. This resulted in a restatement of the SEFA. Cause: Due to staff turnover, staff was unfamiliar with the specifics of the grant. Effect: SEFA was inaccurate. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.
Criteria: In accordance with the Uniform Guidance, 2 CFR 200.510(b), the auditee must prepare the schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements. Condition: The auditee did not finalize the schedule of expenditures of federal awards prior to signing the engagement letter and the start of the audit procedures for the fiscal year July 1, 2022 to June 30, 2023. Additionally, the prepared SEFA included totals representing contractor payments to Florence Crittenton (FCFS), which overstated SEFA total expenditures by $173,389. Context: Initially, the auditee stated that a single audit was not needed for fiscal year 2022-23, and that expenditures of federal awards was below $750,000. The audit engagement letter was prepared and signed, which excluded single audit language. During the course of the audit procedures, the SEFA was prepared by the auditee with the assistance of the auditor, and it was determined that the auditee incurred $816,420 in expenditures of federal awards in fiscal year covering July 1, 2022 to June 30, 2023. Upon the discovery that a single audit was needed for the testing period, the engagement letter was revised, and single audit procedures were completed. During the course of audit procedures for the Single Audit, it was discovered that the state of Montana considered Florence Crittenton to be a non-subrecipient for the stabilization grants under the Child Care and Development Block Grant. Effect: Non-compliance with the Uniform Guidance regarding SEFA preparation. Questioned Costs: There were no questioned costs identified. Cause: Florence Crittenton was not aware that federal expenditures for the fiscal year July 1, 2022 to June 30, 2023 were over $750,000 until the auditor requested documentation that federal expenditures were under $750,000. Recommendation: We recommend the organization review all contracts before the end of the fiscal year to ensure all funds received have the appropriate contracts from state and federal awarding entities, and that the organization begin SEFA preparation immediately following the end of the fiscal year to ensure it includes all federal funds expended and is completed prior to the start of audit procedures. Organization Response: Based on the way that the State of Montana has historically written their grant contracts, it has been difficult to decipher if the organization is a subrecipient or a contractor of the state. This was especially true for any contracts funded through Covid-19 CARES and ARPA funds. Additionally, FCFS was unclear if seed funds from the Innovation grant were considered expended or not. This confusion led to a mistake on the initial SEFA worksheet that indicated federal funds fell below $750,000. Upon further examination by all parties, it was determined that FCFS had in fact expended over $750,000 in federal funds. FCFS immediately signed an engagement letter for Douglas Wilson to complete the SEFA and has since complied with all testing requirements. To ensure this mistake does not happen again, FCFS designed a corrective action plan that will include confirming subrecipient or contractor status with all contracting agencies. This has already been completed with current contracts for FY24. FCFS has subsequently established additional measures to ensure complete review of all contracts and quarterly reporting of all grant spending, regardless of if it is a federal, state, or private grant.
Criteria: In accordance with the Uniform Guidance, 2 CFR 200.510(b), the auditee must prepare the schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements. Condition: The auditee did not finalize the schedule of expenditures of federal awards prior to signing the engagement letter and the start of the audit procedures for the fiscal year July 1, 2022 to June 30, 2023. Additionally, the prepared SEFA included totals representing contractor payments to Florence Crittenton (FCFS), which overstated SEFA total expenditures by $173,389. Context: Initially, the auditee stated that a single audit was not needed for fiscal year 2022-23, and that expenditures of federal awards was below $750,000. The audit engagement letter was prepared and signed, which excluded single audit language. During the course of the audit procedures, the SEFA was prepared by the auditee with the assistance of the auditor, and it was determined that the auditee incurred $816,420 in expenditures of federal awards in fiscal year covering July 1, 2022 to June 30, 2023. Upon the discovery that a single audit was needed for the testing period, the engagement letter was revised, and single audit procedures were completed. During the course of audit procedures for the Single Audit, it was discovered that the state of Montana considered Florence Crittenton to be a non-subrecipient for the stabilization grants under the Child Care and Development Block Grant. Effect: Non-compliance with the Uniform Guidance regarding SEFA preparation. Questioned Costs: There were no questioned costs identified. Cause: Florence Crittenton was not aware that federal expenditures for the fiscal year July 1, 2022 to June 30, 2023 were over $750,000 until the auditor requested documentation that federal expenditures were under $750,000. Recommendation: We recommend the organization review all contracts before the end of the fiscal year to ensure all funds received have the appropriate contracts from state and federal awarding entities, and that the organization begin SEFA preparation immediately following the end of the fiscal year to ensure it includes all federal funds expended and is completed prior to the start of audit procedures. Organization Response: Based on the way that the State of Montana has historically written their grant contracts, it has been difficult to decipher if the organization is a subrecipient or a contractor of the state. This was especially true for any contracts funded through Covid-19 CARES and ARPA funds. Additionally, FCFS was unclear if seed funds from the Innovation grant were considered expended or not. This confusion led to a mistake on the initial SEFA worksheet that indicated federal funds fell below $750,000. Upon further examination by all parties, it was determined that FCFS had in fact expended over $750,000 in federal funds. FCFS immediately signed an engagement letter for Douglas Wilson to complete the SEFA and has since complied with all testing requirements. To ensure this mistake does not happen again, FCFS designed a corrective action plan that will include confirming subrecipient or contractor status with all contracting agencies. This has already been completed with current contracts for FY24. FCFS has subsequently established additional measures to ensure complete review of all contracts and quarterly reporting of all grant spending, regardless of if it is a federal, state, or private grant.
PREPARATION OF SCHEDULE OF EXPENDITURES AND FEDERAL AWARDS QUESTIONED COSTS: N/A Criteria: The Uniform Guidance Subpart F section 200.510 requires the preparation of the Schedule of Expenditures of Federal Awards (SEFA) that includes an accurate reporting of federal awards expended based on the terms and conditions of the grants along with the amount of funds disbursed to sub-recipients. In order for the SEFA to be prepared accurately and properly report the amounts expended for federal awards, a system of controls should be in existence that includes the identification of federal expenditures, timely and accurate preparation and review of the amounts reported on the SEFA. Condition: The initial SEFA prepared by the School Board’s did not accurately include or identify all the federal award expenditures. This finding is repeated from the prior year. See the Summary Schedule of Prior Year Findings and Questioned Cost item 2022-003. Universe/ Population: None Sample size: None Cause: The grant awards or agreements were not properly interpreted or reviewed to identify or determine the proper amount to be reported as expenditures or SEFA. The 2 CFR Part 200, Appendix XI, Compliance Supplement publishes and distributed by the President of the United States’ Office of Management and Budget includes requirements for SEFA reporting that were not complied with. Effect: The SEFA provided to us for audit did not contain all the federal programs or the correct amounts of federal expenditures based on the terms of the grant awards and requirements to reporting on some of the federal programs reported. Inaccuracies or excluding information on the SEFA causes delays in completing the single audit and risks filing a SEFA that is incomplete or inaccurate. In addition, auditors may not identify and test the correct major federal programs in accordance with the Uniform Guidance. Recommendation: The School Board should strengthen its controls including its review and approval processes over the identification of federal programs, and the information and balances that are accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal expenditures. View of Responsible Official: Management agrees with finding. Disaster Grants through FEMA are managed by rules and processes that are not easily accounted for in traditional accounting systems. Procedures will be strengthened to fully and accurately identify all federal program expenditures and record in the appropriate accounting funds.
Finding 2023-004: Inadequate Review of the Schedule of Expenditures of Federal Awards U.S. Department of Health and Human Services Federal Programs: Advanced Nursing Education Workforce Grant Program (ALN number 93.247) (Federal Award Year 2023), Family Planning Services (ALN number 93.217) (Federal Award Year 2023), and Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (ALN number 93.323) (Federal Award Year 2023) Repeat Finding: No Criteria: In accordance with 2 CFR 200.510, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During our testing, we identified errors in the Organization’s SEFA for the year ended June 30, 2023. The errors were as follows: • Total federal expenditures for Assistance Listing Number (ALN) 93.247, Advanced Nursing Education Workforce Grant Program, were understated by $516,141. • Total federal expenditures for ALN 93.217, Family Planning Services, were overstated by $125,252. • The federal grantor for amounts passed through the Illinois Department of Public Health for ALN 93.323, Epidemiology and Laboratory Capacity for Infectious Disease (ELC), was incorrectly reported as the U.S. Department of the Treasury and should have been reported as the U.S. Department of Health and Human Services. Cause: The Organization did not have adequate internal controls in place over the review of the SEFA to ensure the SEFA was complete and accurate. . Effect: The errors contained in the SEFA led to inaccurate major program determination. After correcting the errors, an additional major program was identified. The data collection form and reporting package were not received by the Federal Audit Clearinghouse by the prescribed due date. Recommendation: We recommend the Organization enhance its internal controls over the review of the completeness and accuracy of the SEFA. View of responsible officials of the auditee: Management agrees with the finding and recommendation.
Finding 2023-004: Inadequate Review of the Schedule of Expenditures of Federal Awards U.S. Department of Health and Human Services Federal Programs: Advanced Nursing Education Workforce Grant Program (ALN number 93.247) (Federal Award Year 2023), Family Planning Services (ALN number 93.217) (Federal Award Year 2023), and Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (ALN number 93.323) (Federal Award Year 2023) Repeat Finding: No Criteria: In accordance with 2 CFR 200.510, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During our testing, we identified errors in the Organization’s SEFA for the year ended June 30, 2023. The errors were as follows: • Total federal expenditures for Assistance Listing Number (ALN) 93.247, Advanced Nursing Education Workforce Grant Program, were understated by $516,141. • Total federal expenditures for ALN 93.217, Family Planning Services, were overstated by $125,252. • The federal grantor for amounts passed through the Illinois Department of Public Health for ALN 93.323, Epidemiology and Laboratory Capacity for Infectious Disease (ELC), was incorrectly reported as the U.S. Department of the Treasury and should have been reported as the U.S. Department of Health and Human Services. Cause: The Organization did not have adequate internal controls in place over the review of the SEFA to ensure the SEFA was complete and accurate. . Effect: The errors contained in the SEFA led to inaccurate major program determination. After correcting the errors, an additional major program was identified. The data collection form and reporting package were not received by the Federal Audit Clearinghouse by the prescribed due date. Recommendation: We recommend the Organization enhance its internal controls over the review of the completeness and accuracy of the SEFA. View of responsible officials of the auditee: Management agrees with the finding and recommendation.
Finding 2023-004: Inadequate Review of the Schedule of Expenditures of Federal Awards U.S. Department of Health and Human Services Federal Programs: Advanced Nursing Education Workforce Grant Program (ALN number 93.247) (Federal Award Year 2023), Family Planning Services (ALN number 93.217) (Federal Award Year 2023), and Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (ALN number 93.323) (Federal Award Year 2023) Repeat Finding: No Criteria: In accordance with 2 CFR 200.510, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During our testing, we identified errors in the Organization’s SEFA for the year ended June 30, 2023. The errors were as follows: • Total federal expenditures for Assistance Listing Number (ALN) 93.247, Advanced Nursing Education Workforce Grant Program, were understated by $516,141. • Total federal expenditures for ALN 93.217, Family Planning Services, were overstated by $125,252. • The federal grantor for amounts passed through the Illinois Department of Public Health for ALN 93.323, Epidemiology and Laboratory Capacity for Infectious Disease (ELC), was incorrectly reported as the U.S. Department of the Treasury and should have been reported as the U.S. Department of Health and Human Services. Cause: The Organization did not have adequate internal controls in place over the review of the SEFA to ensure the SEFA was complete and accurate. . Effect: The errors contained in the SEFA led to inaccurate major program determination. After correcting the errors, an additional major program was identified. The data collection form and reporting package were not received by the Federal Audit Clearinghouse by the prescribed due date. Recommendation: We recommend the Organization enhance its internal controls over the review of the completeness and accuracy of the SEFA. View of responsible officials of the auditee: Management agrees with the finding and recommendation.