Micro Enterprise Services of OregonNon-Profit

Finding # 2024-002 Type: Material weakness Type: Material noncompliance over allowable costs A.L. Number: 14.218 and 21.027 Requirement: Personnel expenses charged to federal awards must be supported by records that reflect the time worked charged to the award. Condition: The Organization charged personnel expenses based on approved budgeted amounts in the award agreement. Context: Certain personnel time was charged to the award without documentation to support time and effort spent on the program (12 of 64 tested). Cause: Organization personnel were not aware of the time and effort tracking requirements for federal awards. Effect: Personnel costs could be charged to program for 1) work that was not performed on the program and 2) expenses covered by another funding source. Questioned Costs: Unknown Recommendation: We recommend the Organization implement a time and effort system to track employee time by program or funding source. This is typically done in a timesheet format that tracks all time worked by an employee, including programmatic and administrative time. Management’s Response: Management will carry out additional training with employees on tracking time as well as develop an improved timesheet process. Management also will implement a new payroll system to ensure integration with the accounting system.

Finding # 2024-003 Type: Material weakness over allowable costs Condition/Context: Invoices submitted to funding agencies did not have documented review and approval for 8 of 13 invoices reviewed. Cause: There was no process in place for documenting the reviews and approvals. Questioned Costs: None. Recommendation: The Organization should implement additional procedures to make sure reviews and approvals are documented before invoices are submitted. Management’s Response: Management will implement and document a review of invoices by the grants manager.

Finding # 2024-004 Type: Significant deficiency over eligibility Condition/Context: Case file intake forms reviewed did not have documentation of required eligibility requirements for 7 of 35 case files selected. Cause: There was no process in place for confirming eligibility or completeness of intake form. Questioned Costs: Unknown Recommendation: The Organization should implement additional procedures to make sure case files have proper documentation of eligibility. Management’s Response: Management was able to substantiate the eligibility of all participants however agrees improvement is needed in providing additional training for onboarding staff on eligibility criteria as well as ensuring onboarding forms are complete and accurate. Management will also implement a formal manager review and approval of intake forms which includes validating eligibility criteria have been met.