ROCK VALLEY COMMUNITY PROGRAMS INCNon-Profit

Internal Controls Over Payroll Reconcilliations. Audit finding 2023-001 also represent a significant deficiency in internal control over compliance for Rock Valley Community Program, Inc.'s Veteran Affairs Homeless Providers Grant and per Diem Program. Federal Grantor/Pass-Through Grantor Grant Number Grant Period Department of Veteran Affairs RVCP843-2431-607-CG-22 10/01/2021 - 09/30/2024 Department of Veteran Affairs RVCP843-1430-607-PD-21 10/01/2022 - 09/30/2023 Department of Veteran Affairs RVCP843-4192-607-PD-24 10/01/2023 - 09/30/2024

FA 2019-002 Salary Allocations: Federal Residential Program for Inmates (CFDA# 16.579) ? Indirect Cost Allocations Criteria: RVCP has an approved salary allocation schedule to allocate salaries to specific programs based on time spent for the programs. Condition: The approved salary allocation schedule used during 2019 was the same as used in the prior year. There was not a review of actual time spent in the current year to support the salary allocation schedule. Cause: The allocation percentages were not updated for salaried employees during 2019 for time these employees spent between the individual programs. Effect: Support for allocations in 2019 is not present beyond belief no significant changes were incurred from 2018 Questioned Cost: Our testing included three employees with allocated wages of $5,690. This extrapolates to an annual allocation of approximately $148,000 which was allocated based upon the basis of prior year allocations. Context: Of the 20 payroll transactions charged to the Residential program which we selected for testing, three involved allocation based on prior years (as opposed to current time records). Recommendation: We recommend that all employees for whom a portion of salary is charged to a federal program, either directly or indirectly, complete regular time records and the payroll allocations be updated regularly to reflect actual time distribution to the federal programs. View of Responsible Officials and Planned Corrective Action: Policies have been reviewed and updated for allocating salary amounts to RVCP programs. All salaried employees maintain contemporaneous time records and adjustments to program allocations are being made monthly.

FA 2019-003 CBHC Allocations: Federal Residential Program for Inmates (CFDA# 16.579) ? Indirect Cost Allocations Criteria: RVCP has an approved monthly allocation schedule to allocate salaries of counselors in the Compass Behavioral Health Clinic (CBHC) to the Residential program based on time spent for the program. Condition: The approved monthly salary allocation was only recorded for nine months during 2019 instead of all twelve months the services were provided to the Residential program. Cause: The last three months of 2019 (October through December) allocation journal entries were overlooked and not allocated to the Residential program. Effect: The actual costs to manage the Residential program has been understated. Questioned Costs (Under Allocation): The amount of monthly costs that were not recorded in the Residential program is approximately $27,000 for one month with a total of $81,000 estimated applicable to the period October through December 2019. Context: During our review of the overall transactions posted to the Residential program during 2019, we noted only nine months of these costs being allocated to this federal programs even though the services were provided for all twelve months. Recommendation: We recommend that monthly amounts being allocated for CBHC counselors to the Residential program be reviewed with the monthly journal entries posted to accurately reflect program costs. View of Responsible Officials and Planned Corrective Action: Policies have been reviewed and updated for allocating CBHC salary amounts to RVCP programs. Allocations entries are being reviewed and posted to the proper programs on a monthly basis.

GSA_MIGRATION