Finding 1162817 (2024-002)

Material Weakness Repeat Finding
Requirement
H
Questioned Costs
$1
Year
2024
Accepted
2025-11-21

AI Summary

  • Core Issue: Funds were spent after the grant period ended, violating the grant agreement.
  • Impacted Requirements: All expenditures must occur within the authorized performance period.
  • Recommended Follow-Up: Ensure future grant funds are spent within the designated grant period to avoid questioned costs.

Finding Text

Criteria: According to the grant agreement, all funds must be expended within the authorized period of performance. Condition: Expenditures occurred subsequent to the term of the grant. Cause: Funds were received in advance of expenditures being incurred, and expenditures were incurred subsequent to the period of performance. Effect: Funds expended did not fall within the grant period. Questioned Costs: $35,658 Recommendations: We recommend that grant funds in future programs be spent within the grant period. Views of Responsible Officials: United Way utilized all funds under the grant to invest in the Salem community. As funds were received, it was the view of management that they had been received to be spent in a manner similar to other recipients, and as such, United Way spent those funds after the grant closeout. While the funds were spent after the term of the grant, as noted above, they were spent in service of the grant purpose to serve the Salem community.

Corrective Action Plan

Finding 2024-002 Contact Person responsible for corrective action: Kevin Couey The corrective action planned: Strengthen our processes to ensure all grant expenditures are made within the authorized period of performance. The anticipated completion date (or starting date if ongoing): We immediately put new processes into action effective October 1, 2025 and will be validated at next audit in May 2026.

Categories

Questioned Costs Period of Performance

Other Findings in this Audit

  • 1162816 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $574,546
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $340,750
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $34,999
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $17,670
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $14,800