Finding 1160029 (2022-002)

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

AI Summary

  • Core Issue: UHU lacks proper documentation for cash receipts, violating retention requirements under Title 2 CFR 200 Section 200.333.
  • Impacted Requirements: Failure to maintain supporting documents affects compliance with internal controls and federal record retention policies.
  • Recommended Follow-Up: UHU should establish an organized filing system to ensure all supporting documentation is easily accessible for audits.

Finding Text

Finding 2022-002: Missing Supporting Documentation (Receipts) 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. Condition: During our audit, we noted several instances where backup documentation supporting certain cash receipts were not available for inspection. 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 substantive testwork over UHU's revenue cycle. Cause: UHU did not maintain proper systems to ensure proper filing and maintenance of documentation supporting various receipts. Effect or Potential Effect: We were unable to determine the type of income received, verify any donor mandated restrictions, or confirm the source (payer/donor) of each amount in question for certain transactions. Question Cost: Indeterminable Identification as a Repeat Finding, if Applicable: Repeat of Finding 2021-002 Recommendation: We recommend UHU implement a filing system in which all supporting documentation is filed and maintain 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 based on fiscal year 2022, and not subsequent years, regarding missing supporting documentation for certain cash receipts. The organization understands the importance of maintaining complete and accurate records to ensure financial transparency, accountability, and compliance with applicable regulations. Us Helping Us has developed the proper systems to ensure proper filing and maintenance of documentation supporting various expenditures.Of note, Us Helping Us has developed a process to track income receipts from various sources, including donors, and will be able to verify any donor mandated restrictions, and that contributions conform to said donors/payees. The organization uses a cloud-based accounting system and donor software that allows for attaching documentation directly to transactions. Us Helping Us has made progress in implementing systems for documentation, and as with expenses, documentation will be maintained electronically on the organization’s server, in the financial software used and filed in the Fiscal Manager’s office. All relevant staff will be trained on proper documentation procedures and the importance of retaining records for audit and compliance purposes. Further, financial policies will be updated to include a checklist of required documentation for all cash receipts, procedures for handling and documenting missing receipts an retention schedule aligned with IRS and GAAP requirements (minimum of three years after filing Form 990). Us Helping Us is committed to maintaining accurate and complete financial records. The Executive Director and the Deputy Executive Director for Finance and Administration are responsible for any developing, implementing, and maintaining the Plan, which is currently in place and any enhancements will be effective immediately.

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
  • 1160028 2022-001
    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