EL PASO CHAMBER OF COMMERCENon-Profit

Finding 2020-001: There was not an adequate chart of accounts established to support federal award expense allocations. COVID-19 ? Coronavirus Relief Fund, U.S. Department of Treasury Passed through City and County of El Paso, Texas CFDA 21.019 Allowable Costs/Cost Principles/Reporting Criteria: Per ?200.403 and ?200.303 of the OMB Uniform Guidance, it is the award recipient?s responsibility to establish the appropriate internal controls to prevent duplication of charges and ensure that allocation of expenses among different programs is appropriate and reasonable. Condition: During our review of the accounting records, specifically of federal awards, it was noted that management did not establish a separate chart of accounts to adequately allocate expenses to each federal award. Cause: The chart of accounts available at the time of receipt of federal awards did not allow for proper allocation of expenses by program. Given that the federal awards were new to the Organization, the proper accounts had not been established to support and maintain a record of the expenditures for each federal award. Effect: As a result, program expenditures were not adequately segregated in the Organization?s general ledger for each federal award received during the year ended December 31, 2020. Recommendation: We recommend that management establish a chart of accounts to properly record and allocate expenses for each grant. Management?s response: Management agrees with auditor recommendation. Refer to Corrective Action Plan.