Finding Text
#2025-001 – Major Federal Award Finding – Period of Performance Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance This is a repeat of prior year finding #2024-004. Criteria/Condition: Federal regulations 2 CFR 200.1 provide that a non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance. Questioned Costs: $1,687 Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $21,000 was selected from a population of approximately $359,000 of non-payroll direct expenditures. An amount of $1,293 from one invoice that was charged to the Crime Victim Assistance program was related to the year ending September 30, 2024 and was inappropriately charged to the grant during 2025. Two additional invoices had service dates from both the years ending September 30, 2025 and September 30, 2024, and were inappropriately charged in their entirety to the grant during 2025. The portion relating to the year ending September 30, 2024 totaled approximately $394 from these invoices. Cause/Context: Controls were put in place to review invoices and assign them to the appropriate grant period; however, these controls were not operating as designed. One expenditure out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant was for services provided in the prior performance period and was initially billed to the grant during 2025. Two additional expenditures tested were for contracted monthly services that covered multiple performance periods but were billed in its entirety to the Crime Victim Assistance grant in 2025. Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year. Recommendation: We recommend procedures are consistently performed to review for proper grant period when recording transactions and creating monthly reimbursement requests. Views of Responsible Officials and Planned Corrective Actions: The YWCA has implemented (January 2025) the following changes in its accounting procedures: • The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice. • The CFO will review the month, and year noted by the Staff Accountant prior to entry into accounts payable.