EIN: 522148413
UEI: XX8BDDEBC1Z1
Data as of August 22, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 29, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 29, 2026 (25 days ago).
What is a management decision? →During our examination of internal controls over the disbursement process, a significant deficiency emerged, primarily concerning the documentation and approval procedures for various disbursements. Firstly, numerous disbursements lacked essential documentation, notably the absence of a Check Request Form and supporting materials like receipts, invoices, or Memoranda of Understanding (MOU). For credit card transactions, while supporting documentation such as invoices was provided, the corresponding Check Request Form was noticeably absent. Secondly, we encountered uncertainty in ascertaining the approval of expenditures from Fusion Management for the identified disbursements. The absence of a clear approval trail raises concerns regarding the authorization and oversight of these transactions. Lastly, a notable gap was identified in the lack of an evident process to determine whether Fusion staff reviewed the transactions to assess their compliance with allowable cost guidelines. This absence of a review mechanism creates uncertainty about the appropriateness of the incurred expenses.
Show full finding ▾Hide full finding ▴During our examination of internal controls over the disbursement process, a significant deficiency emerged, primarily concerning the documentation and approval procedures for various disbursements. Firstly, numerous disbursements lacked essential documentation, notably the absence of a Check Request Form and supporting materials like receipts, invoices, or Memoranda of Understanding (MOU). For credit card transactions, while supporting documentation such as invoices was provided, the corresponding Check Request Form was noticeably absent. Secondly, we encountered uncertainty in ascertaining the approval of expenditures from Fusion Management for the identified disbursements. The absence of a clear approval trail raises concerns regarding the authorization and oversight of these transactions. Lastly, a notable gap was identified in the lack of an evident process to determine whether Fusion staff reviewed the transactions to assess their compliance with allowable cost guidelines. This absence of a review mechanism creates uncertainty about the appropriateness of the incurred expenses.
We concur with the finding, and a corrective action plan was created and implemented on January 1, 2024. We have modified our Accounting Policies and Procedures and trained all finance staff on reviewing the necessary backup for disbursements and have been loading this backup into our finance system. The creation and implementation of a google submission for disbursements has added the necessary review and approval of all expenses. Additional Partner Engagement Coordinator review of requests and backup documentation has been implemented for weekly approval of disbursements.
2022-001
During our examination of internal controls over the payroll process, several significant deficiencies emerged. We noted the Partner Leaders have access to update the payroll allocation spreadsheet which shows any changes to hourly rates and salary amounts. This payroll allocation spreadsheet is a substitute to individual timesheets. The payroll allocation is used to process payroll and the payroll and allocation sheet is used to record the journal entry to the appropriate program or grant. We noted during this process, some of the allocations were not correct for several pay periods. We also noted the evidence of an approval from HR for the bi-weekly payroll was not supported and there was time noted on the payroll register that did not match to the records from the rate increase sheet. We also noted that there was no detailed budget for some grants that would show the breakdown of salaries.
Show full finding ▾Hide full finding ▴During our examination of internal controls over the payroll process, several significant deficiencies emerged. We noted the Partner Leaders have access to update the payroll allocation spreadsheet which shows any changes to hourly rates and salary amounts. This payroll allocation spreadsheet is a substitute to individual timesheets. The payroll allocation is used to process payroll and the payroll and allocation sheet is used to record the journal entry to the appropriate program or grant. We noted during this process, some of the allocations were not correct for several pay periods. We also noted the evidence of an approval from HR for the bi-weekly payroll was not supported and there was time noted on the payroll register that did not match to the records from the rate increase sheet. We also noted that there was no detailed budget for some grants that would show the breakdown of salaries.
Fusion added a Payroll Coordinator to our staff who has improved the payroll process and is in the process of streamlining how payroll gets allocated in our finance system. HR now approves all payroll before it is submitted. Fusion is also working to implement a new Payroll system in 2025 that will further streamline this process.
2022-002
During our examination of internal controls, we identified the absence of established procedures. There are no documented procedures in place for the evaluation of bid proposals and subsequent contract comparisons. The lack of structured guidelines contributes to inconsistencies in the procurement process. We also identified the incomplete contract execution, in some instances, contracts were obtained without both parties' signatures, raising concerns about the completeness and validity of the agreements. We noted instances where it was challenging to determine if comparisons were conducted to ensure the selection of the most cost-effective vendor for the organization. The absence of such evaluations may impact the organization's ability to optimize its financial resources. Documentation confirming the sole source status of certain vendors was not consistently provided. This absence introduces uncertainty regarding the organization's compliance with sole source vendor guidelines.
Show full finding ▾Hide full finding ▴During our examination of internal controls, we identified the absence of established procedures. There are no documented procedures in place for the evaluation of bid proposals and subsequent contract comparisons. The lack of structured guidelines contributes to inconsistencies in the procurement process. We also identified the incomplete contract execution, in some instances, contracts were obtained without both parties' signatures, raising concerns about the completeness and validity of the agreements. We noted instances where it was challenging to determine if comparisons were conducted to ensure the selection of the most cost-effective vendor for the organization. The absence of such evaluations may impact the organization's ability to optimize its financial resources. Documentation confirming the sole source status of certain vendors was not consistently provided. This absence introduces uncertainty regarding the organization's compliance with sole source vendor guidelines.
We also added a Procurement Coordinator as of May 9, 2023. We have overhauled our Procurement Policies and implemented changes to be in compliance beginning January 1, 2024. This process is documented as we obtain the various quotes from vendors over dollar amount thresholds and have implemented a bidding process for contracts over a larger threshold. Documentation of such is maintained in the vendor files. Additionally, the purchasing coordinator attends partner engagement coordinator meetings regularly to discuss purchases that are subject to increased scrutiny in order to improve cross departmental communication. A standardized bid evaluation policies and procedures document will be created to give clear direction to internal stakeholders. A comprehensive training course will also be created and made available to all parties involved in the bid evaluation process.
2022-003
During our testing of internal controls, we identified reports are completed as identified in the grant agreement, however, there are some internal control issues where the financial reports internally (Quick Books) do not always match to the funder required submitted reports.
Show full finding ▾Hide full finding ▴During our testing of internal controls, we identified reports are completed as identified in the grant agreement, however, there are some internal control issues where the financial reports internally (Quick Books) do not always match to the funder required submitted reports.
Although Fusion reviews all backup submitted to funders for reimbursement, where our process has fallen short is in the corrections to the finance reports internally to match what is submitted in real time. In 2024 Fusion added additional staff review to invoice submission and financial reports. This will be fully corrected with the new finance system going online in Q1 of 2025 and additional process added by our AR staff reviewing expenses when invoices are submitted to ensure accuracy.
2022-004
During our discussion with management and review of the Organization’s procurement policy, we were unable to obtain documentation to support compliance with the procurement policy and related internal controls. Additionally, documentation was not available to support the inquiries around suspension and debarment.
Show full finding ▾Hide full finding ▴During our discussion with management and review of the Organization’s procurement policy, we were unable to obtain documentation to support compliance with the procurement policy and related internal controls. Additionally, documentation was not available to support the inquiries around suspension and debarment.
Fusion’s Procurement Coordinator and Accounts Payable began reviewing in 2024 websites for vendors that are debarred from doing business using Federal Funding http://www.sam.gov/ and State/City Funding https://egov.maryland.gov/BusinessExpress/EntitySearch. Fusion has moved to implementing the screening of all payment requests using this method. Planned Implementation Date of Corrective Action Plan – Parts of plan implemented as of January 1, 2024. The plan will be fully implemented by January 1, 2025.
2022-005
FAC accepted this audit on January 29, 2024 — management decision was due July 29, 2024.
During our examination of internal controls over the disbursement process, a significant deficiency emerged, primarily concerning the documentation and approval procedures for various disbursements. Firstly, numerous disbursements lacked essential documentation, notably the absence of a Check Request Form and supporting materials like receipts, invoices, or Memoranda of Understanding (MOU). For credit card transactions, while supporting documentation such as invoices was provided, the corresponding Check Request Form was noticeably absent. Secondly, we encountered uncertainty in ascertaining the approval of expenditures from Fusion Management for the identified disbursements. The absence of a clear approval trail raises concerns regarding the authorization and oversight of these transactions. Lastly, a notable gap was identified in the lack of an evident process to determine whether Fusion staff reviewed the transactions to assess their compliance with allowable cost guidelines. This absence of a review mechanism creates uncertainty about the appropriateness of the incurred expenses.
Show full finding ▾Hide full finding ▴During our examination of internal controls over the disbursement process, a significant deficiency emerged, primarily concerning the documentation and approval procedures for various disbursements. Firstly, numerous disbursements lacked essential documentation, notably the absence of a Check Request Form and supporting materials like receipts, invoices, or Memoranda of Understanding (MOU). For credit card transactions, while supporting documentation such as invoices was provided, the corresponding Check Request Form was noticeably absent. Secondly, we encountered uncertainty in ascertaining the approval of expenditures from Fusion Management for the identified disbursements. The absence of a clear approval trail raises concerns regarding the authorization and oversight of these transactions. Lastly, a notable gap was identified in the lack of an evident process to determine whether Fusion staff reviewed the transactions to assess their compliance with allowable cost guidelines. This absence of a review mechanism creates uncertainty about the appropriateness of the incurred expenses.
We concur with the finding, and a corrective action plan was created and implemented on January 1, 2023. We have modified our Accounting Policies and Procedures and trained all finance staff on reviewing the necessary backup for disbursements and have been loading this backup into our finance system. The creation and implementation of a google submission for disbursements has added the necessary review and approval of all expenses.
During our examination of internal controls over the payroll process, several significant deficiencies emerged. We noted the Partner Leaders have access to update the payroll allocation spreadsheet which shows any changes to hourly rates and salary amounts. This payroll allocation spreadsheet is a substitute to individual timesheets. The payroll allocation is used to process payroll and the payroll and allocation sheet is used to record the journal entry to the appropriate program or grant. We noted during this process, some of the allocations were not correct for several pay periods. We also noted the evidence of an approval from HR for the bi-weekly payroll was not supported and there was time noted on the payroll register that did not match to the records from the rate increase sheet. We also noted that there was no detailed budget for some grants that would show the breakdown of salaries.
Show full finding ▾Hide full finding ▴During our examination of internal controls over the payroll process, several significant deficiencies emerged. We noted the Partner Leaders have access to update the payroll allocation spreadsheet which shows any changes to hourly rates and salary amounts. This payroll allocation spreadsheet is a substitute to individual timesheets. The payroll allocation is used to process payroll and the payroll and allocation sheet is used to record the journal entry to the appropriate program or grant. We noted during this process, some of the allocations were not correct for several pay periods. We also noted the evidence of an approval from HR for the bi-weekly payroll was not supported and there was time noted on the payroll register that did not match to the records from the rate increase sheet. We also noted that there was no detailed budget for some grants that would show the breakdown of salaries.
Fusion also added a Payroll Coordinator to our staff who has improved the payroll process and is in the process of streamlining how payroll gets allocated in our finance system. HR now approves all payroll before it is submitted.
During our examination of internal controls, we identified the absence of established procedures. There are no documented procedures in place for the evaluation of bid proposals and subsequent contract comparisons. The lack of structured guidelines contributes to inconsistencies in the procurement process. We also identified the incomplete contract execution, in some instances, contracts were obtained without both parties' signatures, raising concerns about the completeness and validity of the agreements. We noted instances where it was challenging to determine if comparisons were conducted to ensure the selection of the most cost-effective vendor for the organization. The absence of such evaluations may impact the organization's ability to optimize its financial resources. Documentation confirming the sole source status of certain vendors was not consistently provided. This absence introduces uncertainty regarding the organization's compliance with sole source vendor guidelines.
Show full finding ▾Hide full finding ▴During our examination of internal controls, we identified the absence of established procedures. There are no documented procedures in place for the evaluation of bid proposals and subsequent contract comparisons. The lack of structured guidelines contributes to inconsistencies in the procurement process. We also identified the incomplete contract execution, in some instances, contracts were obtained without both parties' signatures, raising concerns about the completeness and validity of the agreements. We noted instances where it was challenging to determine if comparisons were conducted to ensure the selection of the most cost-effective vendor for the organization. The absence of such evaluations may impact the organization's ability to optimize its financial resources. Documentation confirming the sole source status of certain vendors was not consistently provided. This absence introduces uncertainty regarding the organization's compliance with sole source vendor guidelines.
We also added a Procurement Coordinator as of May 9, 2023. We have been working to overhaul our Procurement Policies and are implementing changes to be in compliance beginning January 1, 2024. This process will be documented as we obtain the various quotes from vendors over a certain dollar amount threshold and will manage the bidding process. Documentation of such will be maintained in the vendor files. The process will be completed by the Procurement Coordinator and will be reviewed by the Leadership Team.
During our testing of internal controls, we identified reports are completed as identified in the grant agreement, however, there are some internal control issues where the financial reports internally (Quick Books) do not always match to the funder required submitted reports.
Show full finding ▾Hide full finding ▴During our testing of internal controls, we identified reports are completed as identified in the grant agreement, however, there are some internal control issues where the financial reports internally (Quick Books) do not always match to the funder required submitted reports.
Although Fusion reviews all backup submitted to funders for reimbursement, where our process has fallen short is in the corrections to the finance reports internally to match what is submitted in real time. This will be corrected moving forward with the new finance system and additional process added by our AR staff reviewing expenses when invoices are submitted to ensure accuracy. Moving forward Fusion’s new finance system will also be able to invoice on expenses booked to grants. We anticipate this system being up and running in Q2 of 2024. Additional reviews will be added upon invoicing to ensure program staff budgets and finance recording are in sync.
During our discussion with management and review of the Organization’s procurement policy, we were unable to obtain documentation to support compliance with the procurement policy and related internal controls. Additionally, documentation was not available to support the inquiries around suspension and debarment.
Show full finding ▾Hide full finding ▴During our discussion with management and review of the Organization’s procurement policy, we were unable to obtain documentation to support compliance with the procurement policy and related internal controls. Additionally, documentation was not available to support the inquiries around suspension and debarment.
Fusion’s Procurement Coordinator will review the website for vendors that are debarred from doing business using Federal Funding http://www.sam.gov/
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