FAC Explorer

Finding 1163526 (2022-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2025-12-05
Audit: 373202
Organization: Knowledge, Education For Your Success, Inc (CA)
Auditor: COHNREZNICK LLP

AI Summary

  • Core Issue: Salary and wage charges to Federal awards must accurately reflect actual work performed.
  • Impacted Requirements: Must have a reliable internal control system, official records, and reflect total employee activity.
  • Recommended Follow-up: Review and strengthen internal controls to ensure compliance with 2 CFR, Part 200.430(i)(1).

Finding Text

According to 2 CFR, Part 200.430(i)(1) charges to Federal awards for salaries and wages must be based on records that accurately reflect the actual work performed, which must, among other things: (i) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) be incorporated into the official records of the non-Federal entity; (iii) and reasonably reflect the total activity for which the employee is compensated by the non-Federal entity.

Corrective Action Plan

Corrective Action Plan The documentation deficiencies identified were largely due to the absence of a dedicated internal Human Resources (HR) department and the absence of formalized HR procedures. During the audit period, HR services were outsourced to a third-party provider; however, the services provided were not comprehensive nor su􀆯iciently tailored to the agency’s operational and compliance needs. Additionally, the scope and deliverables under that contract were not clearly defined, resulting in incomplete documentation practices and potential risk exposure.

Categories

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

Other Findings in this Audit

  • 1163527 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $4.80M
64.033 VA Supportive Services for Veteran Families Program $1.17M
14.267 Continuum of Care Program $646,360
64.033 VA Supportive Services for Veteran Families Program- Shallow Subsidy $21,889
14.231 Emergency Solutions Grant Program $14,915