Finding 1160028 (2022-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2025-10-06

AI Summary

  • Core Issue: UHU lacks a proper system for filing and maintaining supporting documentation for general expenditures, making it difficult to verify transactions.
  • Impacted Requirements: This finding relates to compliance with Title 2 CFR 200 Section 200.333, which mandates retention of financial records for Federal awards and internal controls for non-Federal activities.
  • Recommended Follow-Up: UHU should establish an organized filing system to ensure all supporting documents are easily accessible for audits and future reference.

Finding Text

Finding 2022-001: Missing Supporting Documentation (Expenses) Criteria or Specific Requirement: Title 2 CFR 200 Section 200.333 establishes requirements of retention of financial records, supporting documents, statistical records and all other non-Federal entity records as it relates to Federal awards. Although our exceptions did not disclose exceptions to Federal award documentation specifically, UHU is required to maintain a system of internal controls to comply with its own record retention policy for non-Federal activity. Condition: During the current year audit, we had significant difficulty in obtaining supporting documentation around general expenditures, particularly vendor invoices and contracts. Although our testwork did not disclose exceptions to Federal award documentation specifically, UHU is required to maintain a system of internal controls to comply with its own record retention policy for non-Federal activity. Context: Our audit procedures consisted of control testwork over UHU's cash disbursement cycle as well as substantive testing of Federal expenditures. Cause: UHU did not maintain proper systems to ensure proper filing and maintenance of documentation supporting various expenditures. Effect or Potential Effect: We were unable to verify certain expenditures recorded in the general ledger, verify payee of the funds, verify terms or contract, or confirm each amount in question for certain transactions. Question Cost: Undetermined Identification as a Repeat Finding, if Applicable: Repeat of Finding 2021-001 Recommendation: We recommend UHU implement a filing system in which all supporting documentation is filed and maintained so that it can be easily accessed for future reference.

Corrective Action Plan

Views of Responsible Officials and Corrective Action: Us Helping Us acknowledges the audit finding regarding missing supporting documentation for certain expenses, takes this matter seriously and is committed to ensuring full compliance with applicable accounting standards and Federal regulations. Noting that the findings are based on the 2022 fiscal year, since then the organization has developed the proper systems to ensure proper filing and maintenance of documentation supporting various expenditures. The organization has adopted several cloud-based accounting systems, specifically Quickbooks, Bill.com, and Google Drive, with integrated document management to ensure all expense records are stored and easily retrievable, in addition to maintaining physical files for applicable (non-online, virtual) expenses. In this regard, copies of contracts are maintained electronically on the organization’s server, in the financial software used and filed in the Fiscal Manager’s office.In addition, Us Helping Us maintains the appropriate internal controls to ensure that the appropriate documentation for general expenditures is maintained. Emphasis has been placed on strengthening current internal controls by requiring dual review of all expense submissions and enforcing a checklist for required documentation. All relevant staff undergo training on non-profit accounting standards, documentation protocols, and compliance requirements. Us Helping Us’ financial policies will include: Clear guidelines on acceptable documentation for expenses; Procedures for handling lost or missing records; and a retention schedule aligned with Federal requirements (e.g., Title 2 CFR § 200.333). Us Helping us is committed to maintaining transparency and accountability in all financial operations. The Executive Director and the Deputy Executive Director for Finance and Administration are responsible for developing, implementing, and maintaining the Plan, which has been implemented.

Categories

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1160007 2022-001
    Material Weakness Repeat
  • 1160008 2022-002
    Material Weakness Repeat
  • 1160009 2022-003
    Material Weakness Repeat
  • 1160010 2022-004
    Material Weakness Repeat
  • 1160011 2022-005
    Material Weakness Repeat
  • 1160012 2022-006
    Material Weakness Repeat
  • 1160013 2022-007
    Material Weakness Repeat
  • 1160014 2022-001
    Material Weakness Repeat
  • 1160015 2022-002
    Material Weakness Repeat
  • 1160016 2022-003
    Material Weakness Repeat
  • 1160017 2022-004
    Material Weakness Repeat
  • 1160018 2022-005
    Material Weakness Repeat
  • 1160019 2022-006
    Material Weakness Repeat
  • 1160020 2022-007
    Material Weakness Repeat
  • 1160021 2022-001
    Material Weakness Repeat
  • 1160022 2022-002
    Material Weakness Repeat
  • 1160023 2022-003
    Material Weakness Repeat
  • 1160024 2022-004
    Material Weakness Repeat
  • 1160025 2022-005
    Material Weakness Repeat
  • 1160026 2022-006
    Material Weakness Repeat
  • 1160027 2022-007
    Material Weakness Repeat
  • 1160029 2022-002
    Material Weakness Repeat
  • 1160030 2022-003
    Material Weakness Repeat
  • 1160031 2022-004
    Material Weakness Repeat
  • 1160032 2022-005
    Material Weakness Repeat
  • 1160033 2022-006
    Material Weakness Repeat
  • 1160034 2022-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.914 Hiv Emergency Relief Project Grants $805,140
93.136 Injury Prevention and Control Research and State and Community Based Programs $338,862
93.242 Mental Health Research Grants $206,233
19.029 Economic Injury Disaster Loan $150,000
93.917 Hiv Care Formula Grants $98,670
93.939 Hiv Prevention Activities Non-Governmental Organization Based $74,518
93.279 Drug Use and Addiction Research Programs $67,974
93.940 Hiv Prevention Activities Health Department Based $64,381
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $62,499