Seniors' Resource Center Inc.

Finding 2020-003 - Federal Award Documentation U.S. Department of Health and Human Services Aging Cluster - CFDA No. 93.044 and CFDA No. 93.045, Grant No. EX19047 and Grant No. EX19045; Grant period: January 1, 2020 - December 31, 2020 Condition and Criteria Management of Seniors? Resource Center, Inc. is responsible for establishing and maintaining internal control, including obtaining and maintaining appropriate supporting documentation for all transactions. During audit procedures, we noted that of the 482 samples selected for review, based on 3 months of testing for the 12 month period, 143 selections were missing sufficient internal documentation that supported the units submitted to the Peer Place system for reporting to the program agency. As such, controls over grants of federal funds are inadequate. Compliance with laws and regulations regarding federal grants and contracts is of the utmost importance. Violation of these laws and regulations can impose significant operating and financial penalties on an organization and should be avoided at all cost. We suggest that the Organization structure a system capable of properly accounting for the transactions and restrictions relative to these grants as well as maintaining more accurate and complete documentation for all grant revenue and expenses. We understand that this is a direct result of turnover in positions of the accounting and grants department. However, management may want to consider developing a formal policy to ensure that all accounting transactions have an ?audit trail?. In addition, we noted that the Organization had multiple adjustments to the Schedule of Expenditures of Federal Awards throughout the audit as a result of improper segregation and tracking its federal funding and related expenditures. Effect As information submitted to the federal agency is not being sufficiently documented and maintained, there is the potential risk that there could be improper reporting of federal expenditures on the Schedule of Expenditure of Federal Awards. Cause The Organization has experienced turnover in its accounting and grant departments, and significant reliance was placed on one individual who was responsible for ensuring the accounting and documentation was adequate and accurate. Additionally, the proper control activities were not in place to ensure timely account reconciliations and to ensure that proper documentation is being maintained. Questioned Costs None Recommendation Wipfli recommends that the Organization continue to evaluate its available resources and internal control processes, but to ensure that it is taking appropriate steps to ensure that all required documentation is completed and retained. Views of Responsible Officials and Planned Corrective Action Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.

Finding 2020-003 - Federal Award Documentation U.S. Department of Health and Human Services Aging Cluster - CFDA No. 93.044 and CFDA No. 93.045, Grant No. EX19047 and Grant No. EX19045; Grant period: January 1, 2020 - December 31, 2020 The Organization is in agreement that it did not have adequate internal controls over documentation supporting all federal grant transactions. The Organization experienced turnover in key accounting personnel in 2020, the impact of which was exacerbated by the organizational demands of responding to the COVID-19 pandemic. While the Organization maintained basic accounting functions, for a period of time its financial oversight processes were disrupted and institutional knowledge was lost. The Organization engaged financial consultants to stabilize the finance function and conducted a successful search for an experienced Chief Financial Officer tasked with reinstitution of appropriate internal controls and reporting requirements related federal grant transactions.

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