Finding 50523 (2022-001)

Assistance Listing Number(s): 21.027 Name of Federal Program or Cluster: Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Name of Pass-through Entity: The Salvation Army of Dane County and Dane County Department of Human Services Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations (CFR) section 200.303 requires non-federal entities to establish and maintain effective internal control over federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Condition: YWCA did not adequately document their review or maintain support for the allocation basis for allocating overhead costs or time and effort reporting used as the basis for allocating personnel costs to federal awards. Cause: YWCA did not properly design policies and procedures to ensure overhead allocations and time and effort reporting is timely reviewed and approved and adequately documented. In addition, YWCA experienced turnover in the CFO position, which is responsible for reviewing and approving overhead allocations and time and effort reporting. Effect or Potential Effect: Costs not supported by adequate documentation could be disallowed. Repeat Finding: No. Recommendation: YWCA should establish written policies and procedures to provide for timely and appropriate review and approval and adequate documentation of overhead allocations and time and effort reporting. Views of Responsible Officials: YWCA agrees with the finding and is establishing policies and procedures to provide for timely and appropriate review and approval and documentation of overhead allocations and time and effort reporting. This is expected to be completed by September 2023.