REFUGEE EMPOWERMENT CENTER

Criteria: Cost principles in 2 CFR part 200.431 Compensation ? fringe benefits, prescribe general criteria costs follow to be considered allowable under federal awards. The criteria state costs must be under established written leave policies, the costs are equitably allocated to all related activities and the accounting basis selected for costing each type of leave is consistently followed by the Organization. Questioned Costs: $46,283 Condition: Out of 60 transactions tested, 5 federal expenditures charged to fringe benefits were not equitably allocated to all related activities, 7 transactions had clerical errors leading to overpayment of employees, and 3 transactions where timecards could not be located supporting the transaction. The Organization charged compensated absence payouts to federal expenditures and the Organization was unable to support whether the accrued time occurred while providing services allowable under the federal award. Cause: The Organization was unable to provide adequate support of how and when the employee incurred the accrued leave and it could not be determined if leave was incurred while the employee was providing allowable services under the federal award. Effect: The determination could not be made to whether the incurred expenses were allowable under the federal award leading to questioned costs. Recommendation: We recommend the Organization increase internal controls over payroll relating to federal grants to prevent future documentation issues. Organization Response: Management agrees with the finding. The Organization has implemented a new payroll system, which includes time tracking. It has also changed its policy to pay overtime rather than accruing comp-time, as well as implementing an unlimited PTO policy. These changes will eliminate charging grants for undocumented accrued time.

Corrective Action Plan: The organization has implemented a new payroll system, which includes time tracking. It has also changed its policy to pay overtime rather than accruing comp-time, as well as an implementing an unlimited PTO policy. These changes will eliminate charging grants for undocumented accrued time. Reasonable completion date: October 1, 2022 Responsible Party: Rick Rummel, Director of Finance & Administration

Criteria: Uniform Guidance requires that costs must be adequately documented and retained to demonstrate that only costs for allowable activities or allowable costs are charged to federal programs. Documentation should also support that expenditures are incurred during the period of availability and prior to submission for reimbursement. Questioned Costs: None Condition: Supporting documentation could not be provided for costs that were charged to the program to support the allowability of costs and activities. Out of the 60 transactions tested for this program, adequate supporting documentation could not be provided for 4 transactions. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to support costs charged to federal programs. Effect: Certain costs could not be supported as allowable that were charged to the program potentially affecting future grant funding. Recommendation: We recommend the Organization continue to follow the established internal controls and provide additional training to avoid future errors. Organization Response: Management agrees with the finding. The Organization is implementing new software for tracking client expense, which has functionality to import copies of credit card receipts and check requests into each client?s record. We have emphasized to case managers the importance of keeping receipts.

Corrective Action Plan: The organization is implementing new software for tracking client expense, which has functionality to import copies of credit card receipts and check requests into each client?s record. We have emphasized to case managers the importance of keeping receipts. Reasonable completion date: June 1, 2023 Responsible Party: Tanya DeWolf, Director of Refugee Services

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION