Granite United Way

Finding type: Material weakness in internal controls and on internal controls over compliance. Criteria: Management is responsible for ensuring all incurred costs are spent within the designated timeframe specified in the grant agreement for federal grants. Condition: During the compliance testing, it was noted that the obligation dates for expenditures charged to the grant were outside of the period of performance. Context: Funds were expended in the fiscal year on transactions with future obligation dates that fell outside of the award's designated timeframe. Cause of condition: The condition was caused by a misunderstanding between the grantor and the grantee on what was permitted to be expended during the period of performance. Effect of condition: As a result of this condition, there were disallowed costs charged to the grant that are required to be paid back. Questioned costs: $147,427 Likely Questioned Costs: $152,263 Recommendation: It is recommended that the United Way establish additional policies and procedures around the review of obligation dates to ensure that they are within the permitted timeframes of grants.

Significant deficiencies in internal controls over financial reporting. The SEFA presented for audit required multiple drafts. It was noted that certain programs on the schedule had the incorrect assistance listing number and program titles. Six programs included incorrect subrecipient expenditures and the total amount reported on the schedule was overstated by $17,956.

Section II ? Financial Statement Findings No financial statement findings noted. Section III ? Federal Awards Findings Finding 2019-001: Information on the Federal Program Cluster: Regional Public Health Network Services Cluster Pass-Through Entity: Various (see page 30) Award Number: Various (see page 30) Compliance Requirements: Subrecipient Monitoring Type of Finding: Significant Deficiency ? Noncompliance Criteria Program requirements state that expenditures by subrecipients must be reviewed and monitored by the grantee. Condition For the year ended March 31, 2019, we reviewed a selection of subrecipient expenditures and reimbursement requests and noted that supporting documentation was not being monitored by Granite United Way during the first half of the fiscal year. Questioned Costs None noted. Context Of the seven selections tested, four did not have evidence supporting the monitoring activities were taking place. Effect As a result, Granite United Way could not provide support that they were actively monitoring the expenditures and activities performed by the subrecipients. Cause Subrecipients provided summaries of expenses and would provide support if requested, however Granite United Way did not request supporting documentation until halfway through the fiscal year when they were made aware they needed to monitor subrecipients more closely. Recommendation We recommend management obtain detailed supporting documentation for each expenditure from subrecipients. We also recommend that management ensure they are in compliance with other subrecipient monitoring processes such as performing pre-award risk assessments at the time of each award, obtaining audit reports and audit communication letters and following up on any related audit findings or issues. Responsible Officials Response and Corrective Action Planned Management implemented a process during the year in which they are collecting all required documentation from each subrecipient and closely monitoring their activities. Prior to the implementation of this procedure, the supporting documentation was available to management by request. Management was not aware they were required to review supporting documentation for each expenditure. Beginning during the second half of the year, management has been reviewing detailed documentation. Planned Implementation Date of Corrective Action Already implemented. Person Responsible for Corrective Action Shannon Bresaw