Heart of West Michigan United Way Contract Audit Report 2006265

TABLE OF CONTENTS INTRODUCTION 1 SCOPE 1 EXECUTIVE SUMMARY 1-2 HEART OF WEST MICHIGAN UNITED WAY RESPONSE 2 SUMMARY OF FINDINGS AND RECOMMENDATIONS Contracted Services 2 Client Case File Review 3 Proper Classification of Expenses 3-4 AmeriCorps Workes 4 Indirect Charges 4-5 Subcontract Language 5 INTRODUCTION Heart of West Michigan United Way (HWM) entered into contract #BA-05-41001 with the Michigan Department of Human Services (DHS) to provide a Before and After School Program (BA) for TANF eligible children in grades K-9. Under this contract HWM was to provide chemical abuse and dependency prevention/awareness services, violence prevention, anger management, character development, a health curriculum, character and leadership development, emergency preparedness, art, music, drama and computer technology programs, family oriented field trips, and mentoring. HWM was also to provide transportation for children when necessary. The contract totaled $649,059 and covered the period July 1, 2005 through September 30, 2006. HWM was reimbursed for their actual costs of providing the program through submission of monthly billings to DHS. SCOPE The Office of Internal Audit performed an audit of Heart of West Michigan United Way to determine if the Agency’s billings were accurate, and if the costs billed were allowable and properly ...