EIN: 581436933
UEI: MXNPU4AXN447
Data as of August 22, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 4, 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 August 4, 2026 (19 days ago).
What is a management decision? →The Urban League of Greater Chattanooga’s process for allocating indirect costs to programs where indirect costs are reimbursable needs improvement. There is no process to prevent or detect if the indirect cost pool costs support the amounts charged to federal and state programs.
Show full finding ▾Hide full finding ▴The Urban League of Greater Chattanooga’s process for allocating indirect costs to programs where indirect costs are reimbursable needs improvement. There is no process to prevent or detect if the indirect cost pool costs support the amounts charged to federal and state programs.
Effective immediately, ULGC will seek to engage an external financial consultant to provide formal training under the direction of Reginald F. Smith II, President and CEO. Training will be targeted to the accounting team, including the Director of Accounting, and will focus on GAAP compliance, timely month-end closing procedures, grant revenue recognition, indirect cost allocation, accurate cash application to accounts receivable, and SEFA preparation.
2024-001
The detailed expenses recorded to the general ledger were not in agreement with the expenses reported in the schedule of expenditures of federal awards. While these differences were identified during the audit process, no auditor-proposed adjustments were required.
Show full finding ▾Hide full finding ▴The detailed expenses recorded to the general ledger were not in agreement with the expenses reported in the schedule of expenditures of federal awards. While these differences were identified during the audit process, no auditor-proposed adjustments were required.
Effective immediately, ULGC will seek to engage an external financial consultant to provide formal training under the direction of Reginald F. Smith II, President and CEO. Training will be targeted to the accounting team, including the Director of Accounting, and will focus on GAAP compliance, timely month-end closing procedures, grant revenue recognition, indirect cost allocation, accurate cash application to accounts receivable, and SEFA preparation.
FAC accepted this audit on March 27, 2025 — management decision was due September 27, 2025.
Finding # 2024-001 – Indirect Costs Allocation Process Needs Improvement Federal program titles: • Volunteer Income Tax Assistance ALN: 21.009 • Coronavirus State and Local Recovery Funds ALN: 21.019 • Senior Care Service Employment Program ALN 17.235 • Twenty First Century Community Learning ALN 84.287C • Connected Literacy Program ALN 84.425B Criteria or specific requirements: 2 CFR § 200.412 Classification of costs “…cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double charging of Federal awards. Condition and Context: The Urban League of Greater Chattanooga process for allocating indirect costs to programs where indirect costs are reimbursable needs improvement. The is no process to prevent or detect if the indirect cost pool costs support the amounts charged to federal and state programs. Cause: The Urban League of Greater Chattanooga records indirect costs to a cost allocation pool but does not record a journal entry in the general ledger to allocate those costs to the programs. Effect: Duplication of cost charged to programs could result in receiving overpayments. Based on analysis of the total indirect cost pool, the indirect cost pool included supported indirect costs charged to the programs. Known and Likely Questioned Costs: None Recommendation: Implement a monthly process to record and allocate indirect costs to programs where an indirect rate is allowed. The allocation should be prepared by someone knowledgeable of the indirect allocation and reviewed by another individual at least one level above.
Show full finding ▾Hide full finding ▴Finding # 2024-001 – Indirect Costs Allocation Process Needs Improvement Federal program titles: • Volunteer Income Tax Assistance ALN: 21.009 • Coronavirus State and Local Recovery Funds ALN: 21.019 • Senior Care Service Employment Program ALN 17.235 • Twenty First Century Community Learning ALN 84.287C • Connected Literacy Program ALN 84.425B Criteria or specific requirements: 2 CFR § 200.412 Classification of costs “…cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double charging of Federal awards. Condition and Context: The Urban League of Greater Chattanooga process for allocating indirect costs to programs where indirect costs are reimbursable needs improvement. The is no process to prevent or detect if the indirect cost pool costs support the amounts charged to federal and state programs. Cause: The Urban League of Greater Chattanooga records indirect costs to a cost allocation pool but does not record a journal entry in the general ledger to allocate those costs to the programs. Effect: Duplication of cost charged to programs could result in receiving overpayments. Based on analysis of the total indirect cost pool, the indirect cost pool included supported indirect costs charged to the programs. Known and Likely Questioned Costs: None Recommendation: Implement a monthly process to record and allocate indirect costs to programs where an indirect rate is allowed. The allocation should be prepared by someone knowledgeable of the indirect allocation and reviewed by another individual at least one level above.
Per the auditor's reportable finding via the Section II- Findings Related to the Financials Statements Audited in Accordance with Government Auditing Standrds and Section III- Findings and Questioned Costs For Federal Awards: 2024-001 Indirect Costs Alloction Process Needs Improvements, the following represents management's explanation of tits corrective action plan: Effectively immediately, Urban League of Greater Chattanooga (ULGC) implementing a monthly process to record and allocate indirect costs to programs where an indirect rate is allowed for all federal and state programs. Kyree Brown, Accountant will calculate and record the journal entry and Pierre Pinkerton, CFO will perform the review. Also Kyree Brown will eprform a monthly reconciliation of indirect costs charged to programs with the amount recorded to the general ledger. Any differences will be investigated and immediately resolved.
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