Finding 569967 (2023-002)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2025-07-01

AI Summary

  • Core Issue: The Organization inaccurately reported payroll benefits, using a 32% estimate instead of the actual 19.53% based on benefit account balances.
  • Impacted Requirements: Federal programs require accurate reporting of payroll benefits at actual costs, affecting multiple grants and funding sources.
  • Recommended Follow-Up: Establish a review process to ensure accurate benefit charges, with all calculations approved by the executive director.

Finding Text

1) Federal program and specific federal award Identification: Major Programs • CFDA #19.510 U.S. Refugee Admissions Program o Federal Agency: U.S. Department of State/Bureau of Population, Refugees, and Migration o Pass through Agency: U.S. Committee for Refugees and Immigrants • CFDA #93.576 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agencies: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants Other Impacted Pass-Through Funding • CFDA #93.566 Refugee and Entrant Assistance - Discretionary Grants o Federal Agency: U.S. Department of Health and Human Services o Pass through Agency: Wisconsin Department of Children and Families and U.S. Committee for Refugees and Immigrants o 2) Criteria: Payroll benefits should be reported at actual costs not estimated percentage. 3) Condition: The Organization used 32% of salaries and wages to report benefits throughout the year. Based on ending balances in benefit accounts, this percentage should have been 19.53%. 4) Cause: The Organization does not have a process in place to ensure benefits are being accurately charged to grants. 5) Effect: Payroll benefit percentages should be reviewed throughout the year for accuracy to ensure all grants and programs properly account for the activities of the Organization and to properly report benefit costs on cost reports to funding sources. 6) Questioned costs: • Employee Benefits $64,011 Major Programs o U.S. Committee for Refugees and Immigrants  Reception & Placement: $18,848  Matching Grant $8,761  Preferred Communities $19,798 Other Impacted Pass-Through Funding o WI Department of Children and Families  Refugee Support Services $12,265  Refugee Health Administration $2,505  Refugee Health Promotion $1,834 7) Prevalence or consequence: This impacted all quarters of the fiscal year. 8) Recommendation to prevent future occurrences. We recommend that the Organization develop a review process and checks and balances system to adequately test that benefit charges are coded to the correct grants and programs for actual amounts. We also recommend that all calculations be reviewed and approved by the executive director. 9) Views of responsible officials at auditee. See attachment for Organization’s corrective action plan.

Categories

Questioned Costs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 569962 2023-001
    Material Weakness Repeat
  • 569963 2023-001
    Material Weakness Repeat
  • 569964 2023-001
    Material Weakness Repeat
  • 569965 2023-002
    Material Weakness
  • 569966 2023-002
    Material Weakness
  • 1146404 2023-001
    Material Weakness Repeat
  • 1146405 2023-001
    Material Weakness Repeat
  • 1146406 2023-001
    Material Weakness Repeat
  • 1146407 2023-002
    Material Weakness
  • 1146408 2023-002
    Material Weakness
  • 1146409 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
19.510 U.s. Refugee Admissions Program $929,074
93.567 Refugee and Entrant Assistance_voluntary Agency Programs $440,031
93.576 Refugee and Entrant Assistance_discretionary Grants $439,603
19.402 Professional and Cultural Exchange Programs - International Visitor Leadership Program $173,764
93.566 Refugee and Entrant Assistance_state Administered Programs $121,109
66.469 Great Lakes Program $17,782