Finding 20991 (2022-003)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-08-06
Audit: 22884
Organization: Youth Emergency Services INC (NE)

AI Summary

  • Core Issue: Federal expenditures were not properly allocable and documented, leading to a materially misstated schedule of expenditures.
  • Impacted Requirements: Costs must be necessary, reasonable, and adequately documented under 2 CFR part 200, subpart E.
  • Recommended Follow-Up: Management should track and monitor federal expenditures separately from non-federal expenditures in their accounting system.

Finding Text

Criteria: Cost principles in 2 CFR part 200, subpart E (Cost Principles), prescribe general criteria costs follow to be considered allowable under federal awards. The criteria state costs must be necessary and reasonable for the performance of the federal award, be allocable, and be adequately documented. Condition: While all costs tested were determined to be necessary and reasonable for the performance of the federal award, federal expenditures were not allocable and adequately documented leading to a materially misstated schedule of expenditures of federal awards. Cause: Due to the lack of accounting expertise and transition in the accounting and finance roles during the year, there was a lack of accounting for federal awards leading to a materially misstated schedule of expenditures of federal awards being presented for audit. The schedule of expenditures of federal awards was corrected, but not until significantly after the close of the fiscal year. Effect: The lack of internal controls surrounding allocating costs could lead to potential funding issues in the future. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management separately track and monitor federal expenditures from non-federal expenditures in their accounting system. Organization Response: Management agrees with this finding.

Corrective Action Plan

Corrective Action Plan Contact Person: Randy Cates rcates@yesomaha.org 402.345-6704 FINDING 2022-003: Schedule of Expenditures of Federal Awards Regarding Schedule of Expenditures of Federal Awards?we have a system in place to timely and accurately track and record all expense submissions and related fund receipts. Our Director of Development will forward all grant related information to our Grant?s Manager, Director of Operations, CFO, and our CPA Firm. Process steps include: ? All parties mentioned above will meet to review the Grant. ? The Grant Manager will provide oversite of the grant and will: o Create a document that details the type of expenses (and % thereof) that are grant eligible. This document is shared with all parties mentioned above. o Review with Director of Operations and CFO all invoicing and payroll information relating to illegibility. o CFO will code all eligible expenses and share that information with CPA firm for tracking purposes. o CPA firm will compile expense submission reports per the grant schedule. o Grant Manager will review, approve, and submit grant reports to the granting agency. o Fund receipts will be processed by Development Team and the information will be shared with all parties mentioned above. o Development Team will deposit funds received. o CPA firm will track and record all fund receipts. o Grant?s Manager will maintain a file with all relevant information for each grant. Reasonable completion date: Process is place as of July 7, 2023 Responsible Party: Randy Cates, CFO

Categories

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 20992 2022-004
    Material Weakness
  • 20993 2022-005
    Material Weakness
  • 20994 2022-006
    Material Weakness
  • 20995 2022-003
    Material Weakness
  • 20996 2022-004
    Material Weakness
  • 20997 2022-005
    Material Weakness
  • 20998 2022-006
    Material Weakness
  • 597433 2022-003
    Material Weakness
  • 597434 2022-004
    Material Weakness
  • 597435 2022-005
    Material Weakness
  • 597436 2022-006
    Material Weakness
  • 597437 2022-003
    Material Weakness
  • 597438 2022-004
    Material Weakness
  • 597439 2022-005
    Material Weakness
  • 597440 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.550 Transitional Living for Homeless Youth $193,397
14.231 Emergency Solutions Grant Program $171,967
14.267 Continuum of Care Program $122,765
14.218 Community Development Block Grants/entitlement Grants $80,491
16.320 Services for Trafficking Victims $52,634