United Way of Forsyth County, Inc.

2021-001 ? Internal Control Over Financial Reporting Condition: During the audit, we encountered multiple instances where balance sheet and income statement accounts were not reconciled to the general ledger. Included in these accounts were significant accounts such as cash, accounts receivable, pledges receivable, accounts payable, designations payable as well as grant revenue and campaign revenue. After a significant amount of time spent by the audit staff trying to reconcile these accounts, a contract bookkeeper was hired by United Way to perform reconciliation work on certain accounts, adding a significant amount of time to the audit. Criteria: Ensuring that independent reports are reconciled to the general ledger is a significant internal control process over the financial reporting closing process. Proper, timely reconciliations allow for an efficient financial reporting closing process and ensures that the reporting of balance sheet and income statement amounts are complete and exist. Cause: United Way had significant turnover in their finance department during the year. Among the employees that resigned included an employee who was responsible for grant reporting, the Chief Financial Officer and the Accounting Manager. At the time of the audit, the Accounting Manager and the employee responsible for grant reporting had not been replaced. A Chief Financial Officer had been hired but did not have a Finance staff to assist with the day-to-day tasks of the department. Further, grant reporting became the responsibility of a few employees who had no experience with the procedures associated with grant reporting. The lack of a fully staffed Finance department did not allow for timely reconciliations of the above-mentioned accounts.

2021-004 ? Filing of Data Collection Form and Reporting Package Condition: The June 30, 2021 data collection form for United Way was not filed within the time period required by the Uniform Guidance. Criteria: The Uniform Guidance requires that non-federal entities that expend $750,000 or more in a year in federal awards shall have a single audit conducted and that the audit shall be completed, and the data collection form and reporting package shall be submitted within the earlier of 30 days after receipt of the auditors' report or nine months after the end of the audit period. Cause: Due to multiple resignations within the Finance department during the year, significant time was added to the audit due to a variety of issues within the general ledger, namely amounts in significant accounts that were not reconciled in a timely manner (See 2021-001 above). United Way ultimately hired a contract bookkeeper to assist them with reconciling accounts, which further extended the audit and the filing of the Data Collection Form and Reporting package.

2021-005 ? Cash Management Condition: During our review of cash management procedures for the SSVF grant, we noted that in some instances there was a 3 month lag between when grant expenses were incurred and when reimbursement was requested. Further, we noted this same 3 month lag between expenses incurred and requested by contractors and when the contractors were paid. Criteria: The SSVF grant stipulates that ?recipients must have procedures for minimizing the time elapsing between the transfer of any advance payments of funds under the award and disbursement of the funds and recipients must ensure that the timing and amount of any payments to sub-recipients under the award conform to this standard.? Cause: During the year, the employee responsible for grant reporting resigned. Multiple efforts were made to replace the employee, but a permanent replacement was not found. While a search for a replacement was ongoing, reimbursement requests for grant funds were filed later than normal, and payments to the subcontractors were subsequently late as well.