Audit Issues

Financial management is an important factor of the administration of service organizations, including those receiving funding from the Corporation for National and Community Service. There are Office of Management and Budget (OMB) provisions that require organizations that expend more than $500,000 in federal funds to have an annual audit. Knowing the potential drawbacks can help in managing your organization or program. Malyszek & Malyszek created a list of some common audit issues shown below.

Recognizing audit issues that other organizations have experienced may help your organization be proactive by setting up policies and procedures to avoid common difficulties.

• No timesheets or documentation for staff hours charged to the grant
• Timesheets signed weeks later by the supervisor
• Unsigned timesheets
• Lack of activity reports for staff charged to more than one grant
• No designation of time/allocation
o Estimated
o Allocated per budget
o Allocated 100% even though staff is an officer of the organization who performs other functions not solely related to the grant

• Insufficient or no member contracts
• No timesheets or documentation of member hours
• No supervisory signature on timesheets
• Insufficient member eligibility documentation
• Hours in WBRS do not agree with member timesheets
• Late member enrollment or exit from WBRS (web-based reporting system)
• Failure to get background checks for members serving within a vulnerable population
• Incomplete or nonexistent evaluations

• Written policies and procedures are required by A-110, Subpart C, b.6

• Expenditures
• Approval for the expenditure
• Original invoice
• The documentation should be stamped or marked paid to reduce the risk of double Authorized signature on check
• payment
• All expenditures should contain documentation that support why the transaction is Documentation should be maintained and accessible for purposes of management as well as the Corporation for National and Community Service review and the required annual or semi-annual audits
• allowable for grant purposes

• Match is not verifiable by grantee's records
• Match documentation should have:
o What was donated
o Amount donated
o Signature of donor
o How the donation was valued
o Date of service

Organizations that are aware of common financial management problems manage finances more successfully. If you are still having difficulties managing all your financial issues, Malyszek & Malyszek is here to assist you. Call us today for a free initial consultation.