Finding 1177736 (2024-002)

Criteria: Refugee Support Services must abide by the percentage allocations for compensation and other expenses in the budget approved by the North Carolina Cabinet of Health and Human Services Department of Social Services. Questioned Costs: $87,400. Effect: Refugee Support Services was not in compliance with Uniform Guidance due to incorrect allocation percentages used in payroll and expense reimbursements. Cause: Refugee Support Services had a significant amount of turnover during the year, including multiple Executive Directors. This led to inadequate review of approved budgets in relation to reimbursement reports to ensure that allocations for payroll and expenses were properly calculated. Recommendation: Management should review all reimbursement reports prior to submission for reimbursement to ensure that payroll allocations agree to the approved budget and that expenses agree to the allocation based on the participants served for the month of reimbursement. Views of Responsible Officials and Planned Corrective Action: Refugee Support Services of the Carolinas Inc. agrees with this finding and will adhere to the corrective action plan as referenced in the accompanying table of contents in this audit report.