APANO COMMUNITIES UNITED FUND

Finding # 2021-002 Type: Material weakness over review and approvals Assistance Listing: 21.019 Coronavirus Relief Funding Requirement: Amounts charged to federal grants should be reviewed and approved. Condition/Context: There were no formal review on certain expense allocations, invoices, and timesheets tested. It was also noted that the expense allocations were mostly being recorded on a cash basis. Cause: Various staff turnover in the past few years caused inconsistent procedures over review and approvals. Effect: Improper or inaccurate amounts could be paid or charged to contracts. Questioned Costs: None. Recommendation: We recommend the Organization prepare and review expense allocations on a monthly basis to ensure accounting records are reconciled and accurate. We also recommend that supervisors sign off on invoices and timesheets during the process of review. Procedures should be put in place to ensure reviews are completed timely. Management Response: Management recognizes need for better documentation of review and approval processes. Management will implement electronic bill payment software and document storage for all invoices. Additionally, management will implement payroll software supervisor review and approval workflows and retained documentation.

Finding # 2021-003 Type: Material Weakness over reporting Type: Material noncompliance over reporting Assistance Listing: 21.019 Coronavirus Relief Funding Requirement: Progress and expenditure reports are required to be submitted throughout the duration of the contract. Condition/Context: Out of a seven reports selected for testing, five were not submitted or did not have proof of submission. Those tested were not reviewed before submission. Cause: There was no oversight of reporting requirements to the federal agencies. Effect: Required reports were not filed. Questioned Costs: None. Recommendation: We recommend management review and retain reports prepared by staff prior to submitting to the federal agencies to ensure reports are accurate and in compliance. Management Response: Management recognizes need for standard reporting processes across the organization. Management will implement a policy that all financial reporting is reviewed and submitted by the accounting department, with the accounting department retaining reports and submission documentation. ?

Finding # 2021-004 Type: Immaterial noncompliance Assistance Listing: 21.019 Coronavirus Relief Funding Requirement: Documentation (invoices, allocation spreadsheets, etc.) should be retained to support amounts charged to contracts. Condition/Context: Out of a sample of 40 expenditures charged to the grant, five invoices did not have support for amounts charged. These were mostly for credit card charges or expense allocations. Cause: Various staff turnover in the past few years caused inconsistent procedures over document retention. Effect: Improper or inaccurate amounts could be paid or charged to contracts. Questioned Costs: None. Recommendation: We recommend upper management retain invoices to support charges to ensure expenses are for allowable activities and costs. Management Response: Management recognizes need for standard reporting processes across the organization. Management will implement a policy that all grant and contract invoicing is generated and submitted by the accounting department, with the accounting department retaining invoices and submission documentation.