EIN: 880253276
UEI: GSA_MIGRATION
Audited by: HOULDSWORTH, RUSSO & CO., P.C.
Oversight agency: 16 [Department of Justice]
View federal awards & risk assessment →
Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 28, 2022. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 28, 2022 (1436 days ago).
What is a management decision? →Of the forty-eight payroll transactions selected for testing, two employees had time charged to the grant that exceeded the time noted on the activity-based timesheet. The time charged is the basis for the percentage to determine how much is reported for salary, payroll taxes, and fringe benefits. Context: The supporting records were not reviewed to determine that an error occurred. Effect: The grant was overcharged for the two months that this occurred. Overall, the amount reimbursed by the grant did not exceed the grant budget. Cause: The Organization did not have proper review procedures in place to detect an error in the amount charged to the grant. Recommendation: We recommend management design and implement a system of internal controls whereby all supporting records are reviewed and verified prior to submitting the monthly reimbursement report. Views of Responsible Officials and Planned Corrective Action: Corrective action was completed February 28, 2022. The grant accountant submits all records to the Director of Finance prior to submitting to the grantor, they are reviewed for accuracy and corrections made if needed.
Show full finding ▾Hide full finding ▴2021-001: U.S. Department of Justice, Crime Victim Assistance, Assistance Listing Number 16.575, Internal Control System Over Allowable Costs/Cost Principles, Pass Through Nevada Department of Health and Human Services Criteria: As defined in 2 CFR 200.62, auditee is required to maintain a system of internal control over compliance designed to provide reasonable assurance that federal award transactions executed are in compliance with the terms and conditions of the federal award. Condition: Of the forty-eight payroll transactions selected for testing, two employees had time charged to the grant that exceeded the time noted on the activity-based timesheet. The time charged is the basis for the percentage to determine how much is reported for salary, payroll taxes, and fringe benefits. Context: The supporting records were not reviewed to determine that an error occurred. Effect: The grant was overcharged for the two months that this occurred. Overall, the amount reimbursed by the grant did not exceed the grant budget. Cause: The Organization did not have proper review procedures in place to detect an error in the amount charged to the grant. Recommendation: We recommend management design and implement a system of internal controls whereby all supporting records are reviewed and verified prior to submitting the monthly reimbursement report. Views of Responsible Officials and Planned Corrective Action: Corrective action was completed February 28, 2022. The grant accountant submits all records to the Director of Finance prior to submitting to the grantor, they are reviewed for accuracy and corrections made if needed.
2021-001: U.S. Department of Justice, Crime Victim Assistance, Assistance Listing Number 16.575, Internal Control System Over Allowable Costs/Cost Principles Criteria: As defined in 2 CFR 200.62, auditee is required to maintain a system of internal control over compliance designed to provide reasonable assurance that federal award transactions executed are in compliance with the terms and conditions of the federal award. Condition: Of the forty-eight payroll transactions selected for testing, two employees had time charged to the grant that exceeded the time noted on the activity-based timesheet. The time charged is the basis for the percentage to determine how much is reported for salary, payroll taxes, and fringe benefits. Context: The supporting records were not reviewed to determine that an error occurred. Effect: The grant was overcharged for the two months that this occurred. Overall, the amount reimbursed by the grant did not exceed the grant budget. Cause: The Organization did not have proper review procedures in place to detect an error in the amount charged to the grant. Recommendation: We recommend management design and implement a system of internal controls whereby all supporting records are reviewed and verified prior to submitting the monthly reimbursement report. Views of Responsible Officials and Planned Corrective Action: Corrective action was completed February 28, 2022. The grant accountant submits all records to the Director of Finance prior to submitting to the grantor, they are reviewed for accuracy and corrections made if needed. Corrective action was completed February 28th, 2022. The grant accountant submits all records to the Director of Finance prior to submitting to the grantor, they are reviewed for accuracy and corrections made if needed.
During a portion of the year ended June 30, 2021, one employee was allowed to self-approve the activity-based timesheet. The time charged is the basis for the percentage to determine how much is reported for salary, payroll taxes, and fringe benefits. Context: The supporting records were not reviewed by an appropriate individual. Effect: Were the employee to misreport time spent on grant activities, there was no review process in place to discover the error. Cause: The Organization did not have an appropriate individual assigned to review the employee?s activity-based timesheet.U.S. Department of Justice, Crime Victim Assistance, Assistance Listing Number 16.575, Internal Control System Over Allowable Costs/Cost Principles (Continued) Recommendation: We recommend management design and implement a system of internal control whereby an appropriate individual is designated to review and approve each employee?s activity-based timesheet. Repeat audit finding: Finding 2021-002 is a repeating finding of 2020-002. Views of Responsible Officials and Planned Corrective Action: Corrective action was completed December 1, 2021. All employees have to approve their hours worked and those hours are then approved by their supervisors. If an employee has to force an approval to complete payroll, i.e., self-approve, the timecard is held back, reviewed, and manually signed off by a signing authority.
Show full finding ▾Hide full finding ▴2021-002: U.S. Department of Justice, Crime Victim Assistance, Assistance Listing Number 16.575, Internal Control System Over Allowable Costs/Cost Principles, Passed Through Nevada Department of Health and Human Services Criteria: As defined in 2 CFR 200.62, auditee is required to maintain a system of internal control over compliance designed to provide reasonable assurance that federal award transactions executed are in compliance with the terms and conditions of the federal award. Condition: During a portion of the year ended June 30, 2021, one employee was allowed to self-approve the activity-based timesheet. The time charged is the basis for the percentage to determine how much is reported for salary, payroll taxes, and fringe benefits. Context: The supporting records were not reviewed by an appropriate individual. Effect: Were the employee to misreport time spent on grant activities, there was no review process in place to discover the error. Cause: The Organization did not have an appropriate individual assigned to review the employee?s activity-based timesheet.U.S. Department of Justice, Crime Victim Assistance, Assistance Listing Number 16.575, Internal Control System Over Allowable Costs/Cost Principles (Continued) Recommendation: We recommend management design and implement a system of internal control whereby an appropriate individual is designated to review and approve each employee?s activity-based timesheet. Repeat audit finding: Finding 2021-002 is a repeating finding of 2020-002. Views of Responsible Officials and Planned Corrective Action: Corrective action was completed December 1, 2021. All employees have to approve their hours worked and those hours are then approved by their supervisors. If an employee has to force an approval to complete payroll, i.e., self-approve, the timecard is held back, reviewed, and manually signed off by a signing authority.
2021-002: U.S. Department of Justice, Crime Victim Assistance, Assistance Listing Number 16.575, Internal Control System Over Allowable Costs/Cost Principles Criteria: As defined in 2 CFR 200.62, auditee is required to maintain a system of internal control over compliance designed to provide reasonable assurance that federal award transactions executed are in compliance with the terms and conditions of the federal award. Condition: During a portion of the year ended June 30, 2021, one employee was allowed to self-approve the activity-based timesheet. The time charged is the basis for the percentage to determine how much is reported for salary, payroll taxes, and fringe benefits. Context: The supporting records were not reviewed by an appropriate individual. Effect: Were the employee to misreport time spent on grant activities, there was no review process in place to discover the error. Cause: The Organization did not have an appropriate individual assigned to review the employee?s activity-based timesheet.U.S. Department of Justice, Crime Victim Assistance, Assistance Listing Number 16.575, Internal Control System Over Allowable Costs/Cost Principles (Continued) Recommendation: We recommend management design and implement a system of internal control whereby an appropriate individual is designated to review and approve each employee?s activity-based timesheet. Repeat audit finding: Finding 2021-002 is a repeating finding of 2020-002. Views of Responsible Officials and Planned Corrective Action: Corrective action was completed December 1, 2021. All employees have to approve their hours worked and those hours are then approved by their supervisors. If an employee has to force an approval to complete payroll, i.e., self-approve, the timecard is held back, reviewed, and manually signed off by a signing authority. Corrective action was completed December 1st, 2021. All employees have to approve their hours worked and those hours are then approved by their supervisors. If an employee has to force an approval to complete payroll, ie self approve, the timecard is held back, reviewed and manually signed off by signing authority. Responsible official: Lana Morano Title: Director of Finance Email: lmorant@theshadetree.org Phone number: 360-630-1196
2020-002
FAC accepted this audit on March 29, 2021 — management decision was due September 29, 2021.
Of the fo1ty payroll records selected for testing, two employees had time charged to the grant that exceeded the time noted on the activity-based timesheet. The time charged is the basis for the percentage to dete1mine how much is repo1ted for sala1y, payroll taxes and findings benefits. Context: The supp01ting records were not reviewed to dete1mine that an error occured. Effect: The grant was overcharged for the two months that this occU1Ted. Overall, the amount reimbursed by the grant did not exceed the grant budget. Cause: The Organization did not have proper review procedures in place to detect an error in the amount charged to the grant. Recommendation: We recommend management design and implement a system of internal controls whereby all supporting records are reviewed and ve1ified p1ior to submitting the monthly reimbursement rep01t. Views of Responsible Officials: The Organization took corrective action in this regard in Febma1y 2020 and implemented an electronic activity-based timesheet system, these are reviewed and approved by direct supervisors and processed through the payroll software. The payroll rep01ts are reviewed and cross-referenced p1ior to submitting final reimbursements, thereby automating this process, and establishing multiple points of checks and balances to eliminate errors.
Show full finding ▾Hide full finding ▴2020-002: U.S. Department of Justice, Crime Victim Assistance, CFDA #16.575, Internal Control System Over Allowable Costs/Cost Principles Criteria: As defined in 2 CFR 200.62, auditee is required to maintain a system of internal control over compliance designed to provide reasonable assurance that federal award transactions executed are in compliance with the te1ms and conditions of the federal award. Condition: Of the fo1ty payroll records selected for testing, two employees had time charged to the grant that exceeded the time noted on the activity-based timesheet. The time charged is the basis for the percentage to dete1mine how much is repo1ted for sala1y, payroll taxes and findings benefits. Context: The supp01ting records were not reviewed to dete1mine that an error occured. Effect: The grant was overcharged for the two months that this occU1Ted. Overall, the amount reimbursed by the grant did not exceed the grant budget. Cause: The Organization did not have proper review procedures in place to detect an error in the amount charged to the grant. Recommendation: We recommend management design and implement a system of internal controls whereby all supporting records are reviewed and ve1ified p1ior to submitting the monthly reimbursement rep01t. Views of Responsible Officials: The Organization took corrective action in this regard in Febma1y 2020 and implemented an electronic activity-based timesheet system, these are reviewed and approved by direct supervisors and processed through the payroll software. The payroll rep01ts are reviewed and cross-referenced p1ior to submitting final reimbursements, thereby automating this process, and establishing multiple points of checks and balances to eliminate errors.
In accordance with 2 CFR 200.511 ( c) we have prepared a corrective action plan for each audit finding included in the audit report. 2020-001: Corrective Action Plan The Shade Tree has purchased software for an electronic bar code system for tracking in-kind donations, volunteers, equipment and assets. The testing is actively underway and expect to have this operational by fiscal year end. Additionally, skilled management and staff have been hired and corrective action already taken includes restricting access to inventory and directing all in-kind donations to one delivery point. 2020-002: Corrective Action Plan The Organization took corrective action in this regard in February 2020 and implemented an electronic activity-based timesheet system, these are reviewed and approved by direct supervisors and processed through the payroll software. The payroll reports are reviewed and cross-referenced prior to submitting final reimbursements, thereby automating this process, and establishing multiple points of checks and balances to eliminate errors.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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