Finding 31799 (2022-002)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-03-23
Audit: 31421
Organization: Adelante Mujeres (OR)

AI Summary

  • Core Issue: Payroll costs for federal grants are based on budgeted amounts instead of actual hours worked.
  • Impacted Requirements: This practice violates Uniform Grant Guidance 200.430, which mandates charges be based on actual work performed.
  • Recommended Follow-Up: Update the payroll processing system to accurately track hours worked for each program to ensure compliance.

Finding Text

Requirement: Per Uniform Grant Guidance 200.430, charges to federal awards for salaries and wages must be based on actual work performed, supported by internal controls, and part of the official records of the organization. Using budgeted amounts do not qualify as support for charges to federal awards. Condition/Context: Payroll costs charged to grants are based on budgeted allocations not actual hours. Cause: The Organization?s payroll processing system is not configured to track hours charged to various programs. Effect: While charges appear allowable to federal programs tested, the potential exists for hours to be inaccurately recorded or charged to programs. Questioned Costs: None.

Corrective Action Plan

Adelante Mujeres respectfully submits the following corrective action plan for the year ended June 30, 2022. Contact Person of Adelante Mujeres: Xandi Aranda, Director of Finance 2030 Main Street, Suite A, Forest Grove, Oregon 97116 Name and Address of Independent Public Accounting Firm: McDonald Jacobs, P.C. 520 SW Yamhill, Suite 500 Portland, OR 97204 Federal Agencies: U.S. Department of Agriculture U.S. Department of Health and Human Services Audit Period: July 1, 2021 through June 30, 2022. The findings from the June 30, 2022 summary schedule of prior audit findings and schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedules. Finding #2022-001 Type: Material weakness over revenue recognition Material Weakness: Grants were not being recorded properly or consistently as a result of inaccurate data entry of grant award dates. Recommendation: Finance and grants departments should work together with donor database administrator to maintain and update their database to ensure the accurate tracking of grant dates and other key award information. Corrective Action: The Organization is increasing capacity in the finance department and will provide additional training to staff in both the finance and grant departments. Anticipated Completion Date June 2023

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 31800 2022-002
    Significant Deficiency Repeat
  • 31801 2022-002
    Significant Deficiency Repeat
  • 31802 2022-002
    Significant Deficiency Repeat
  • 31803 2022-002
    Significant Deficiency Repeat
  • 608241 2022-002
    Significant Deficiency Repeat
  • 608242 2022-002
    Significant Deficiency Repeat
  • 608243 2022-002
    Significant Deficiency Repeat
  • 608244 2022-002
    Significant Deficiency Repeat
  • 608245 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.311 Beginning Farmer and Rancher Development Program $159,392
93.667 Social Services Block Grant $95,007
10.225 Community Food Projects $84,847
10.175 Farmers Market and Local Food Promotion Program (b) $82,899
14.218 Community Development Block Grants/entitlement Grants $81,611
93.570 Community Services Block Grant_discretionary Awards $73,799
93.959 Block Grants for Prevention and Treatment of Substance Abuse $61,800
10.558 Child and Adult Care Food Program $43,578
93.137 Community Programs to Improve Minority Health Grant Program $30,796
10.181 Ams - Pandemic Response and Safety Grants Program/ Ams - Farmworker and Meatpacking Worker Relief Grant Program $20,000
21.027 Coronavirus State and Local Fiscal Recovery Funds $6,542