Finding 61448 (2022-003)

-
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-11-17
Audit: 54350
Auditor: Dwc Cpa's LLC

AI Summary

  • Core Issue: The Accounting Policies Manual lacks references to federal award administration requirements.
  • Impacted Requirements: Compliance with Title 2 U.S. Code of Federal Regulations Part 200 is necessary for federal awards.
  • Recommended Follow-Up: Revise the manual to include federal requirements and ensure management participates in training on these regulations.

Finding Text

Condition: The Organization?s Accounting Policies Manual does not contain any references to federal award administration requirements. Criteria: There are multiple references contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) that state that the requirements for federal award administration should be part of the Organization?s written policies. Cause: The Organization?s manual has not been updated for the Uniform Guidance, which generally was effective for awards received after December 25, 2014. Context: The Organization has not received significant federal funding in prior years and management was not familiar with federal award administration requirements. Effect or Potential Effect: The Organization did not comply with Federal regulations regarding federal award administration. Questioned costs: None. Recommendations: We recommend that the Organization?s Accounting Policies Manual be revised to include all applicable references to Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and to adopt all applicable policies contained in the CFR. Views of Responsible Officials and Planned Corrective Action: We will have management attend the Uniform Guidance Spring 2023 Webinar Series through Federal Grants Training. This special webinar series will explain recent changes as well as the major grants management rules that must be followed. United Way will adopt written policies for Federal Award Administration. Draft

Corrective Action Plan

Recommendations: The auditor recommends that the Organization?s Accounting Policies Manual be revised to include all applicable references to Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and to adopt all applicable policies contained in the CFR. Action Taken: We will have management attend the Uniform Guidance Spring 2023 Webinar Series through Federal Grants Training. This special webinar series will explain recent changes as well as the major grants management rules that must be followed. United Way will adopt written policies for Federal Award Administration.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 61446 2022-001
    Material Weakness
  • 61447 2022-002
    Material Weakness
  • 637888 2022-001
    Material Weakness
  • 637889 2022-002
    Material Weakness
  • 637890 2022-003
    -

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $1.84M
14.218 Community Development Block Grants/entitlement Grants $10,000