PARTNERS WITH FAMILIES & CHILDREN: SPOKANENon-Profit

Criteria or specific requirement: The Data Collection Form is required to be submitted at the earlier of 9 months after year-end or 30 days after the completion of the audit. Condition: The Data Collection Form was not filed timely. Questioned costs: No known questioned costs were identified during the course of the audit. Context: The Data Collection Form is required to be submitted at the earlier of 9 months after year-end or 30 days after the completion of the audit. Cause: The Organization was waiting on Washington State Department of Commerce for a decision on an allowable cost. Effect: The Organization was out of compliance with grant contract. Repeat Finding: No Recommendation: We recommend that the Organization file the Data Collection Form timely.

Condtion: During the current year, the Organization allocated salaries of administrative and clerical staff as direct charges to a Federal grant received. The Organization failed to support the allocation of the employee salaries or wages among specific activities or cost objectives identified with a project or activity. Criteria: Based on the standards of documentation of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), the requirements related to direct charging of administrative and clerical staff salaries to a grant is appropriate if the administrative or clerical services are integral to a project or activity, individuals involved can be specifically identified with the project or activity, costs are explicitly included in the budget or have the prior written approval of the Federal awarding agency; and the costs are not also recovered as indirect costs. Effect: The Organization was out of compliance with the standards of documentation under the Uniform Guidance required for directly allocating salaries of administrative and clerical staff to the grant. Cause: The lack of documentation supporting the direct allocation of salaries of administrative and clerical staff associated with the Uniform Guidance Compliance Supplement requirements. Questioned Costs: No known questioned costs were identified during the course of the audit. Recommendations: We recommend that the Organization implement a procedure that allows them to document their allocation of administrative and clerical staff salaries as direct charges to Federal grants in accordance with the Uniform Guidance Compliance Supplement requirements. Management's Response: While the direct charges for administrative and clerical staff were appropriate, allowed, and accepted, Partners acknowledges the need to develop supporting documentation for their direct allocation. Management will work with an accounting consultant or firm to develop procedures that allow accounting personnel to properly allocate administrative and clerical staff salaries to Federal grants in accordance with the Uniform Guidance Compliance Supplement requirements.