Finding 58687 (2022-002)

Response to finding 2022-02 ? Significant Deficiency in Internal Controls Over Compliance and Instances of Noncompliance Related to Unallowable Costs Contact Person(s): Mark Stroh (mstroh@dr-wa.org) and Justin Gifford (justing@dr-wa.org). Corrective action planned: o DRW will modify its internal controls to ensure that all costs charged to the federal awards are allowable under Federal Regulations and follow DRW?s policies and procedures for consistent treatment. Steps: 1. Consolidate what constitutes an unallowable expenditure under federal regulations in a one pager for use in training fiscal staff, program staff, development staff and staff who submit expense reimbursements. Include expenditures that are in a gray area and subject to interpretation, so they are charged to an unrestricted fund. 2. Revise instructions and provide training for coding and approving fund allocations in Concur to emphasize accuracy of coding before it reaches Controller. 3. Revise instructions and provide training for Controller to emphasize the catching of mistakes made during Concur entry and approval before they are entered into Abila. 4. Revise instruction and provide training for reviewing cost center expenditure reports by program directors to emphasize how to understand the information and how to catch coding errors made during the Concur/ Abila entry and approval processes, particularly those which involve using federal dollars for unallowable expenditures. 5. Have Fiscal Monitor routinely verify that all involved employees have received the training described above and are performing their duties consistent with that training. Attention should be paid to ensure that regular reports are made to the Executive Director and involved employees with the results from this monitoring. 6. Go back to charging all technology related expenses (such as computers, computer repairs and accessories) to Cost Center 23 which is allocated on an equitable basis across all funds. Anticipated completion date: April 30, 2023.