DOORWAYS FOR WOMEN AND FAMILIES, INC.Non-Profit

Finding: Reportable Condition #2020-001: Payroll Information on the Federal Programs: All Federal Programs Criteria: As stated in 2 CFR 200.303, the non-federal entity (i.e. the Organization) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or in the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Additionally, 2 CFR 200.430 states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: During our test of the payroll cycle, we noted the following: - 1 out of 40 samples had an employee salary rate that was not calculated properly resulting in an overpayment of $1.40 per hour. This employee's payroll expenses were applied to both federal and non-federal programs. - 1 out of 40 samples had an employee that was paid $1,000 less during a pay period than their normal salary rate; this was not caught until after payroll was processed. This employee's payroll expenses was applied to a non-federal program. - 7 out of 40 samples had an employee who left the project code off their timesheet; while this generally occurred when the employee booked vacation/sick/holiday pay, the allocation for charges in these situations did not appear to be consistently applied, therefore this applied to both federal and non-federal programs. - 1 out of 40 samples had an employee's timesheet that showed 10 hours less worked than what they were paid for. This resulted in the auditor's allocation recalculation of total charges in the general ledger not agreeing and applied to both federal and non-federal programs. - Payroll registers from February 2020 and on were not evidenced as having been reviewed until July 8, 2020, the date of audit fieldwork. This applied to both federal and non-federal programs. Our audit procedures consisted of substantive testwork over a sample of expenditures paid during the year that were selected based on a representative sample of the population. Context: Doorways existing controls over payroll were either inconsistently applied, failed to identify salary and timesheet documentation errors or could not provide an audit trail of the required approval process (paper or electronic).Effect: Without the proper controls in place over payroll expenditures, Doorways could potentially misstate payroll expenses and either over- or under-charge the federal awards. Cause: It is our understanding that some of the errors were due to general oversight of immaterial amounts and exceptions. Additionally, we also understand that due to COVID-19, the sign-off of certain payroll registers did not take place until the staff were back in the office and physically present, although an electronic approval process was not replaced during that time. Questioned Costs: None. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that Doorways ensure payroll rates, timesheets, approvals, allocations and general documentation is reviewed in detail to prior to processing and that an audit trail is maintained for all such processes that occur (either in paper format or electronically).

Finding: Reportable Condition #2020-002: Suspension and Debarment Federal Programs: All Federal Programs Criteria: Recipients of U.S. Government funds must adhere to specific requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure the organization is not conducting business with excluded parties (as defined by the U.S. Government); the screening must be documented in writing. Condition: During the year under audit, Doorways did not perform the screening process for all payments made with Federal funds. Our audit procedures consisted of substantive testwork over a sample of expenditures paid during the year that were selected based on a representative sample of the population. The condition appeared to be systematic in nature. Context: Payments were made throughout the year by Doorways without performing the screening process.Effect: Failure to screen potential vendors, suppliers, employees, fellows or other non-contracted federal transactions against the suspended and debarred list increases the possibility that U.S. Government funds may inadvertently be provided to individuals or organizations deemed to be excluded parties by the U.S. Government. Cause: Doorways did not have policies and procedures in place throughout the year to perform the screening process. Questioned Costs: None. Doorways performed a search on all vendors at the time of audit fieldwork and we were able to determine there were no suspended or debarred vendors being utilized by Doorways. Repeat Finding: This is not a repeat finding. Recommendation: We recommend management of Doorways develop a policy to address the screening process for all contracted and non-contracted transactions including, but not limited to, with vendors, suppliers, employees, and fellows. Furthermore, we recommend that management communicate these policies and procedures to employees of the organization, and it should stress the importance of documenting compliance with the "Suspension and Debarment" provisions. Finally, the screening of potential vendors and suppliers should be completed (and documented) prior to entering into the transactions or making payments.