United Way of the Mid-Willamette ValleyNon-Profit

Criteria: Quarterly expenditure and grant close reports submitted should be accurate. Condition: Expenditures reported on quarterly reports did not reconcile with timing of expenditures in the SEFA, and were not classified appropriately between costs subject to indirect and costs not subject to indirect costs in the final grant closing report. Cause: An in-depth analysis of expenditures charged to the program was not completed when completing the reports to ensure proper reporting on timing or classification of expenditures. Effect: Misclassifications could cause grant funds to not be spent in accordance with the grant agreement and budget. Questioned Costs: None Recommendations: We recommend United way complete an in-depth analysis of the timing and classification of expenditures to ensure proper totals on reports. Views of Responsible Officials: While timing and classification between direct costs and indirect costs were not accurate, the total costs reported reflected the expenditures on the grants, particularly in the final report. Any future grants and related reporting will be reconciled throughout the grant program.

Criteria: According to the grant agreement, all funds must be expended within the authorized period of performance. Condition: Expenditures occurred subsequent to the term of the grant. Cause: Funds were received in advance of expenditures being incurred, and expenditures were incurred subsequent to the period of performance. Effect: Funds expended did not fall within the grant period. Questioned Costs: $35,658 Recommendations: We recommend that grant funds in future programs be spent within the grant period. Views of Responsible Officials: United Way utilized all funds under the grant to invest in the Salem community. As funds were received, it was the view of management that they had been received to be spent in a manner similar to other recipients, and as such, United Way spent those funds after the grant closeout. While the funds were spent after the term of the grant, as noted above, they were spent in service of the grant purpose to serve the Salem community.

Identification of the federal program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Criteria: Proper oversight, review procedures and controls should be established to ensure the amounts reported on the Schedule of Expenditures of Federal Awards (SEFA) are accurate and adequately supported. Condition: Preparation of the SEFA required significant assistance by the independent auditors. While records were noted to be complete, gathering the information for the SEFA required the involvement of the independent auditors. Cause: This was the initial year for United Way of the Mid Willamette Valley to prepare a SEFA and receive an audit under the Uniform Guidance. Effect: Corrections were required to revise the amounts reported on the SEFA and ensure completeness and accuracy. Questioned Costs: None Recommendations: United Way of the Mid-Willamette Valley should establish a system of overall reporting of federal funds to ensure the amounts reported on the SEFA are accurate and adequately supported. Views of Responsible Officials: United Way agrees with the finding above and will develop processes and procedures to ensure that, going forward, all pertinent documents and agreements are retained.

Identification of the federal program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Criteria: Processes and procedures should be in place to ensure when United Way enters into a transaction with another entity for the purchase of goods or services, that United Way is checking the suspended and debarred list and maintaining documentation that this verification occurred. Condition: United Way did not maintain documentation supporting the assertion the suspended and debarred list was checked prior to awarding a contract for services. Cause: Internal control processes and procedures were not in place to ensure the suspended and debarred list was checked prior to awarding a contract. Effect: United Way could contract with an entity for goods and services which is barred from performing work with state or federal funds. Questioned Costs: None. Recommendations: United Way should implement processes, procedures, and controls to ensure the suspended and debarred list is checked prior to awarding a contract and should maintain documentation this check occurred. Views of Responsible Officials: United Way agrees with the finding above. United Way notes that they vetted their contractors, including evaluation of bonding to meet normal due diligence involved in hiring a contractor. In addition, for federal funds requirements, United Way will develop processes and procedures to ensure the suspended and debarred list is checked prior to awarding a contract and ensure documentation is maintained.