CYBERCRIME SUPPORT NETWORKNon-Profit

Reference Number Finding 2020-003 CFDA Number, Federal Agency, and Program Name: CFDA# 97.128, Department of Homeland Security, National Cyber Security Awareness Federal Award Identification Number and Year: 19PDSLP00001, 20CISSLP00003, 2020, 2021 and 2022 Pass-through Entity ? N/A ? Direct funded Finding Type ? Significant Deficiency Repeat Finding ? No Criteria ? Per 2 CFR 200.502 (a) - The determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the nonfederal entity to an interest subsidy; and the period when insurance is in force. Condition ? The initial schedule of expenditures of federal awards (SEFA) did not report expenditures in accordance with the above regulations. Identification of How Questioned Costs Were Computed ? n/a Questioned Costs ? none Context ? The expenditures reported on the SEFA for were overstated by approximately $17,500.Reference Number Finding Cause/Effect ? Internal control procedures were not adequate to create a complete and accurate SEFA resulting in a revision to the SEFA. The change did not impact major program determination. Recommendation ? The City should design controls over SEFA reporting to ensure that the expenditures on the SEFA are complete and accurate. View of Responsible Officials and Planned Corrective Actions ? Moving forward, the SEFA will be prepared in compliance with regulations. In addition, it will be prepared in house and reviewed by VP of Finance prior to distribution to outside auditors.

2020-004 CFDA Number, Federal Agency, and Program Name: CFDA# 97.128, Department of Homeland Security, National Cyber Security Awareness Federal Award Identification Number and Year: 19PDSLP00001, 20CISSLP00003, 2020, 2021 and 2022 Pass-through Entity ? N/A ? Direct funded Finding Type ? Significant Deficiency Repeat Finding ? No Criteria ? Per 2 CFR ? 200.430, costs of compensation are allowable to the extent that they satisfy the specific requirements, and that the total compensation for individual employees is determined and supported. In addition, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition ? Control deficiencies were identified in the allowable cost/cost principles compliance (payroll transactions) process. Out of 30 transactions tested, there were two instances in relation to one employee where the hours noted in payroll register did not match the employee's time sheet. Identification of How Questioned Costs Were Computed ? n/a Questioned Costs ? none Context ? Payroll charged under the grant was overstated. Cause/Effect ? The error was caused by lack of strong internal controls within the accounting department. Total hours charged under the grant for one employee were not reported correctly; therefore, payroll was not calculated properly. Recommendation ? The Organization should design their internal controls over the payroll process to ensure all transactions are properly reviewed and approved. View of Responsible Officials and Planned Corrective Actions ? Payroll hours, rates and allocations are reviewed by VP of Finance and COO prior to being submitted to third party processor.