Ignite

Condition: Amount of salaries allocated to federal programs are not consistently supported by employee timesheets or other similar documentation. Cause: There are limited procedures in place that require reconciliation of actual hours expended to the program. Effect: Since employee salaries were not reconciled, it is possible that employees' time and related costs may be inappropriately allocated amongst functional activities, including cost allocations to federal awards program. This could result in noncompliance with the Uniform Guidance. Context: This condition occurred in 5 out of 23 payroll transactions selected for testing, whereby the payroll allocation was not reconciled to the general ledger. Recommendation: Existing timesheet reconciliation procedures should be revised. The organization should reconcile employee timesheets to amounts allocated to the grants on, at minimum, a quarterly basis, and ideally, on a monthly basis prior to the submission of vouchers or funding requests. Views of Responsible Officials: The Organization agrees with the finding, see corrective action plan.

Condition: The Organization did not retain the documentation of verification of vendors not suppressed or debarred prior to entering into a contract with the vendor. Cause: The Organization did not ensure that part of the procedure was followed. Effect: Despite having a written procurement policy, if the Organization does not maintain sufficient documentation of procurement evaluations and decisions, the Organization's procurement practices will not comply with the Uniform Guidance. Recommendation: The Organization should retain formal documentation with regard to its procurement decisions.

Condition: 2 CFR 200.510(b) requires the auditee to prepare a schedule of federal awards (SEFA) that must contain federal awards expended during the period. Cause: The inaccurate reporting of these federal awards appears to be due to lack of communication and oversight in data collection. Effect: SEFA was inaccurate Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.

Criteria:2 CFR 200.510(b) requires the auditee to prepare a schedule of federal awards (SEFA) that must contain federal awards expended during the period. Condition: On the original SEFA provided for the audit, the total federal expenditures reflected on the SEFA were inaccurate amounts for some programs and the program 21.027 was omitted on the initial SEFA report. This resulted in a restatement of the SEFA. Cause: Due to staff turnover, staff was unfamiliar with the specifics of the grant. Effect:SEFA was inaccurate Recommendation:We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.

Criteria: 2 CFR 200.512(a) requires that the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the fiscal year. Condition: The data collection form for the year ended June 30, 2023 will be filed after the March 30, 2024 nine month deadline, making it a late filing. Cause: Inaccuracies of the SEFA resulted in delays in completion of the Single Audit and data collection form filing. Effect: Late filing will result in the organization not meeting the low-risk auditee criteria for the audit of the year ended June 30, 2024. Recommendation:We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.

Finding 2019-001 ? Period of Performance Major Program: Transitional Living for Homeless Youth Program CFDA Number: 93.550 Federal Agency: U.S. Department of Health and Human Services Pass-Through: N/A Grantor Number: 90CX7027-05-01 and 90CX7218-01-00 Award Period: May 1, 2017 through September 29, 2018 and September 30, 2018 through September 29, 2019 Type of Finding: Other matter and significant deficiency in internal control over compliance. Criteria: Costs incurred under federal award programs are to be recorded in the correct award period. Questioned Costs: $694 Condition: The Agency did not record three disbursements in the correct award period. Context: For three of 11 disbursements selected for testing, the disbursement was incurred in the 2018 award period, and was erroneously recorded in the 2019 award period. Cause: Unknown. Effect: General disbursements that are not monitored for cut-off around the end of an award period could result in the expense being recorded into the incorrect award period. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the Agency review its policies and procedures surrounding cut-off around the end of the award period, and ensure disbursements are recorded in the correct award period. Views of Responsible Officials: There is no disagreement with this finding.