FAC Explorer

Audit 13288

FY End
2022-06-30
Total Expended
$1.64M
Findings
4
Programs
2
Organization: Heartland Coalition for the Homeless, Inc. (FL)
Year: 2022 Accepted: 2024-01-24
Auditor: Kaye Kendrick Enterprises LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9597 2022-001 - - I
9598 2022-002 - - B
586039 2022-001 - - I
586040 2022-002 - - B

Programs

ALN Program Spent Major Findings
14.231 Emergency Solutions Grant Program $1.25M Yes 2
14.267 Continuum of Care Program $388,459 - 0

Contacts

Name Title Type
NM44KPQUU8E9 Brenda Gray Auditee
8638731138 Kaye Kendrick Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of The Heartland Coalition for the Homeless, Inc. (Organization) and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic financial statements.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Indirect Cost Rule Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Program Clusters Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The U.S. Office of Management and Budget Compliance Supplement defines a cluster of programs as a grouping of closely related programs that share common compliance requirements. There were no programs that met this criterion for the current fiscal year.
Title: Contingency Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has received federal grants for specific purposes that are subject to audit by the grantor agencies. Entitlements to these resources are generally conditional upon compliance with the terms and conditions of grant agreements and applicable federal regulations, including the expenditure of resources for allowable purposes. Any disallowance resulting from a grantor audit may become a liability of the Organization.

Finding Details

Finding 2022-001
Condition: As allowed by the Compliance Supplement, alternative procedures were used to procure services to be provided under the grant. Deviation from procurement compliance provisions is allowed; however, the alternative procedures must be in writing and documented to safeguard against waste, fraud, and abuse. The Organization did not have written procedures regarding procurement of goods and services. Criteria: 2 CFR 200.317 through 200.325 requires competitive procurement to be used for purchases exceeding $250,000. Deviation is allowable (per the Compliance Supplement) when procuring goods and services to prevent, prepare for, and respond to Coronavirus. Cause: The contract to the Organization was awarded late and the funds needed to be made available to those in need on a timely basis. To eliminate the time to issue a Request for Proposal, evaluate the proposals received, and award the contracts, the Organization contacted agencies capable of providing services and negotiated contracts. Effect: The Executive Director is experienced in providing services to the homeless and preventing homelessness and was knowledgeable of the agencies which could provide the services. Consequently, the agencies had the opportunity to respond to a request for services and negotiate a contract. This procedure was deemed adequate to provide assurance that fraud, waste, and abuse was reduced. Context: Our review included all contracts awarded to subrecipients, which totaled $900.748.00. Recommendation: Required standard procurement procedures should be followed unless alternative procedures are adopted and written by the Organization.
Finding 2022-002
Condition: Payments to subrecipients for services rendered under the grants included salaries and related benefits for the subrecipients’ employees who worked on the grants. Although the payments were adequately supported by time records reporting total hours worked and pay stubs for a pay period, the costs for time and effort allocated to a specific grant was not documented by a cost allocation method using time and effort by grant. Criteria: 2 CFR Subpart E, Cost Principles require that expense be adequately documented. Cause: Guidance was not provided to subrecipients explaining that such documentation should be provided. Effect: Amounts charged for grants for salaries and benefits may not be accurate. However, the charges appeared reasonable and consistent with other services provided for the grants. Context: Our review included four test items, totaling $164,173.51. Recommendation: The Organization should obtain written certifications from subrecipients regarding time and effort charged to a specific grant. Written guidance should be provided to subrecipients regarding this requirement.
Finding 2022-001
Condition: As allowed by the Compliance Supplement, alternative procedures were used to procure services to be provided under the grant. Deviation from procurement compliance provisions is allowed; however, the alternative procedures must be in writing and documented to safeguard against waste, fraud, and abuse. The Organization did not have written procedures regarding procurement of goods and services. Criteria: 2 CFR 200.317 through 200.325 requires competitive procurement to be used for purchases exceeding $250,000. Deviation is allowable (per the Compliance Supplement) when procuring goods and services to prevent, prepare for, and respond to Coronavirus. Cause: The contract to the Organization was awarded late and the funds needed to be made available to those in need on a timely basis. To eliminate the time to issue a Request for Proposal, evaluate the proposals received, and award the contracts, the Organization contacted agencies capable of providing services and negotiated contracts. Effect: The Executive Director is experienced in providing services to the homeless and preventing homelessness and was knowledgeable of the agencies which could provide the services. Consequently, the agencies had the opportunity to respond to a request for services and negotiate a contract. This procedure was deemed adequate to provide assurance that fraud, waste, and abuse was reduced. Context: Our review included all contracts awarded to subrecipients, which totaled $900.748.00. Recommendation: Required standard procurement procedures should be followed unless alternative procedures are adopted and written by the Organization.
Finding 2022-002
Condition: Payments to subrecipients for services rendered under the grants included salaries and related benefits for the subrecipients’ employees who worked on the grants. Although the payments were adequately supported by time records reporting total hours worked and pay stubs for a pay period, the costs for time and effort allocated to a specific grant was not documented by a cost allocation method using time and effort by grant. Criteria: 2 CFR Subpart E, Cost Principles require that expense be adequately documented. Cause: Guidance was not provided to subrecipients explaining that such documentation should be provided. Effect: Amounts charged for grants for salaries and benefits may not be accurate. However, the charges appeared reasonable and consistent with other services provided for the grants. Context: Our review included four test items, totaling $164,173.51. Recommendation: The Organization should obtain written certifications from subrecipients regarding time and effort charged to a specific grant. Written guidance should be provided to subrecipients regarding this requirement.