UNITY SHELTERNon-Profit

Criteria: In accordance with the 2CFR Part 200 Uniform Administrative requirements, cost principles, and audit requirements for federal awards, direct program costs are not allowed to be charged to more than one federally financed program in either the current or prior period. Condition: Staff payroll costs were charged to more than one federal grantor during 2021. Other costs of the shelter programs were available to be charged but had not been included in the original invoices to the grantor. Effect: Payroll costs were initially reimbursed by more than one grantor during 2021. The grantee had to obtain approval from the grantor after the grant was closed out to obtain permission to reallocate expenses. The grantor accepted the request and there was no requirement to pay back any of the funding. Cause: Ineffective internal controls and communication between the Executive Director and the Grant Recordkeeper over grant tracking of expenditures by grantor. Questioned Costs: none Context: Summary of annual total costs by expense category allocated to federal grantors. Recommendation: Implement internal control procedures for allocating expenditures paid by grantors to ensure costs are not paid by more than one grantor. Views of responsible officials and planned corrective actions: Management and the Board agree with this finding. Costs were subsequently re-allocated to other allowed expenditures for the major grant tested and proper authorization was received from the grantor. Internal control procedures will be implemented to track the expenditures which are paid by grantors and allocate those cost in the internal books timely for proper monitoring of costs throughout the year.