FRIENDS OF HERRING RIVER WELLFLEET TRURO, INC.Non-Profit

Material Weakness Allowable cost/cost principals Finding # 2020-001: Lack of sufficient internal control to provide reasonable assurance that Federal awards are expended only for allowable cost and that cost is not overcharged to Federal award in accordance with applicable cost principles. Program information: CFDA # 11.463 Habitat Conservation, Year ended December 31, 2020, U.S. Department of Commerce. Criteria: 2 CFR Section 200.303 Condition: Inconsistent time sheets format. Not all timesheets indicate actual time spent on the federal program. Lack of supervisor's approval and employee signature on timesheets. Payroll cost over budgeted amount was charged to the federal program. Cause: Budgeted payroll cost rather than actual incurred was charged to the federal program. Effect: Overstatement or understatement of payroll cost charged to federal program. Increased risk of allocation of unallowable shared payroll cost to the federal program. Recommendation: Board of Directors put procedures in place the ensure management's review and approval of timesheets. Enhance the existing time keeping function with payroll service's system to include tracking of hours by federal program. Ensure time sheets support actual cost charged to the federal program. Repeat finding: No Statistical sampling: No. Audit finding represents a systematic issue. Views of responsible officials: The Organization will implement an uniform timesheets that will capture the actual time each employee spent on a federal program. Management will approve time sheets and ensure they support an actual payroll cost billed to the federal program.

Significant Deficiency Period of performance Finding # 2020-002: Lack of sufficient internal control to provide reasonable assurance that costs charged to federal program incurred during the approved budget period of performance. Program information: CFDA # 11.463 Habitat Conservation, Year ended December 31, 2020, U.S. Department of Commerce. Criteria: 2 CFR Section 200.303 and 2 CFR Section 200.403(h) Condition: Allowable cost incurred before the approved budget period of federal award's period of performance was charged to the federal program. Cause: Request for reimbursement not timely submitted within the federal award's period of performance. Effect: Delay in recording revenue in a timely and accurate manner and increased risk of charging unallowable cost to the federal program. Recommendation: Adopt and implement a policy for sending invoices to the grantor on a timely basis. Look for unreimbursed invoices by matching invoices paid to invoices included in reimbursement requests. Repeat finding: No Statistical sampling: No. Audit finding represents an isolated issue. Views of responsible officials: Organization will implement a policy to have the Executive Director review outstanding invoices on a monthly basis and investigate any delays in including invoices in monthly reimbursement requests send to the grantor.