2022-003 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with preparation of the consolidated schedule is not unusual as the consolidated schedule is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a consolidated schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization?s consolidated schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Period of Performance Significant Deficiency in Internal Control over Compliance and Other Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization claimed a portion of expenses that benefited the period outside of the period of performance, which was November 1, 2021, to October 31, 2023. During our testing, there was no documentation of review and approval of expenses for a portion of the sample selected. Cause: The Organization did not have an internal control process in place to ensure that allowable expenses excluded costs incurred prior to the period of performance. Effect: The Organization incorrectly submitted allowable expenses to the grant outside of the grant period of performance. Questioned Costs: There were no questioned costs in excess of $25,000 required to be reported. A nonstatistical sample of 60 ($21,300) out of 1,240 direct program expenditures were tested for period of performance. Of these 60 items, there was an error in one of the expenditures tested relating to $335 of costs benefiting 2021 and this error was determined to be isolated in nature. Of these 60, 45 did not show evidence of proper review and approval prior to payment. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all allowable expenses submitted under the grant are reviewed and approved prior to payment in order to make sure it is in the correct period of performance. Views of Responsible Officials: Management agrees with the finding.
2022-003 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with preparation of the consolidated schedule is not unusual as the consolidated schedule is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a consolidated schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization?s consolidated schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Period of Performance Significant Deficiency in Internal Control over Compliance and Other Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization claimed a portion of expenses that benefited the period outside of the period of performance, which was November 1, 2021, to October 31, 2023. During our testing, there was no documentation of review and approval of expenses for a portion of the sample selected. Cause: The Organization did not have an internal control process in place to ensure that allowable expenses excluded costs incurred prior to the period of performance. Effect: The Organization incorrectly submitted allowable expenses to the grant outside of the grant period of performance. Questioned Costs: There were no questioned costs in excess of $25,000 required to be reported. A nonstatistical sample of 60 ($21,300) out of 1,240 direct program expenditures were tested for period of performance. Of these 60 items, there was an error in one of the expenditures tested relating to $335 of costs benefiting 2021 and this error was determined to be isolated in nature. Of these 60, 45 did not show evidence of proper review and approval prior to payment. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all allowable expenses submitted under the grant are reviewed and approved prior to payment in order to make sure it is in the correct period of performance. Views of Responsible Officials: Management agrees with the finding.
2022-003 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with preparation of the consolidated schedule is not unusual as the consolidated schedule is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a consolidated schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization?s consolidated schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Period of Performance Significant Deficiency in Internal Control over Compliance and Other Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization claimed a portion of expenses that benefited the period outside of the period of performance, which was November 1, 2021, to October 31, 2023. During our testing, there was no documentation of review and approval of expenses for a portion of the sample selected. Cause: The Organization did not have an internal control process in place to ensure that allowable expenses excluded costs incurred prior to the period of performance. Effect: The Organization incorrectly submitted allowable expenses to the grant outside of the grant period of performance. Questioned Costs: There were no questioned costs in excess of $25,000 required to be reported. A nonstatistical sample of 60 ($21,300) out of 1,240 direct program expenditures were tested for period of performance. Of these 60 items, there was an error in one of the expenditures tested relating to $335 of costs benefiting 2021 and this error was determined to be isolated in nature. Of these 60, 45 did not show evidence of proper review and approval prior to payment. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all allowable expenses submitted under the grant are reviewed and approved prior to payment in order to make sure it is in the correct period of performance. Views of Responsible Officials: Management agrees with the finding.
2022-003 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with preparation of the consolidated schedule is not unusual as the consolidated schedule is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a consolidated schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization?s consolidated schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Period of Performance Significant Deficiency in Internal Control over Compliance and Other Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization claimed a portion of expenses that benefited the period outside of the period of performance, which was November 1, 2021, to October 31, 2023. During our testing, there was no documentation of review and approval of expenses for a portion of the sample selected. Cause: The Organization did not have an internal control process in place to ensure that allowable expenses excluded costs incurred prior to the period of performance. Effect: The Organization incorrectly submitted allowable expenses to the grant outside of the grant period of performance. Questioned Costs: There were no questioned costs in excess of $25,000 required to be reported. A nonstatistical sample of 60 ($21,300) out of 1,240 direct program expenditures were tested for period of performance. Of these 60 items, there was an error in one of the expenditures tested relating to $335 of costs benefiting 2021 and this error was determined to be isolated in nature. Of these 60, 45 did not show evidence of proper review and approval prior to payment. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all allowable expenses submitted under the grant are reviewed and approved prior to payment in order to make sure it is in the correct period of performance. Views of Responsible Officials: Management agrees with the finding.
2022-003 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with preparation of the consolidated schedule is not unusual as the consolidated schedule is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a consolidated schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization?s consolidated schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Period of Performance Significant Deficiency in Internal Control over Compliance and Other Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization claimed a portion of expenses that benefited the period outside of the period of performance, which was November 1, 2021, to October 31, 2023. During our testing, there was no documentation of review and approval of expenses for a portion of the sample selected. Cause: The Organization did not have an internal control process in place to ensure that allowable expenses excluded costs incurred prior to the period of performance. Effect: The Organization incorrectly submitted allowable expenses to the grant outside of the grant period of performance. Questioned Costs: There were no questioned costs in excess of $25,000 required to be reported. A nonstatistical sample of 60 ($21,300) out of 1,240 direct program expenditures were tested for period of performance. Of these 60 items, there was an error in one of the expenditures tested relating to $335 of costs benefiting 2021 and this error was determined to be isolated in nature. Of these 60, 45 did not show evidence of proper review and approval prior to payment. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all allowable expenses submitted under the grant are reviewed and approved prior to payment in order to make sure it is in the correct period of performance. Views of Responsible Officials: Management agrees with the finding.
2022-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: 2 CFR 200.33(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statues, regulations, and conditions of the federal award. The Organization is required to submit an accurate report to HHS for each filing period of funds were received. Condition: The Organization erroneously reported $226,571 in expenses on the Period 4 Department of Health and Human Services special report. Cause: The Organization did not have an internal control process in place to ensure the reporting portal input fields for expenses was accurate. Effect: While the calculation error provided a difference between the lost revenues on the HHS special report and the lost revenue calculation, the Organization had excess lost revenues available to be applied. This reporting error also indicated there is a lack of policies governing the review and approval of the HHS special report. Questioned Costs: None reported. The Organization had excess lost revenues available to be applied. Context: Key line items were tested on the Period 4 Department of Health and Human Services special report. The HHS special reports included total expense errors of $226,571. The Organization had excess lost revenues from the Period 4 HHS reports that totaled $2,362,453. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all reports to HHS are reviewed and approved prior to submission to ensure accuracy of the reports and meet the requirements of the federal program . Views of Responsible Officials: Management agrees with the finding.
2022-002 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization?s calculation of lost revenue claimed under the federal program as an allowable cost was not subjected to formal review or approval by a separate individual outside of the preparer. Cause: The Organization did not have an adequate internal control policy to ensure review and approval of the lost revenue calculation claimed under the federal program was documented in accordance with guidance. Effect: The lack of adequate policies governing review and approval increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs: None reported. Context: The lost revenue calculation for all applicable quarters was tested. Repeat Finding from Prior Years: No Recommendation: We recommend the Organization implement a control process which includes a secondary review and documented approval of the lost revenue calculation under the federal program. Views of Responsible Officials: Management agrees with the finding.
2022-003 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with preparation of the consolidated schedule is not unusual as the consolidated schedule is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a consolidated schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization?s consolidated schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
2022-003 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with preparation of the consolidated schedule is not unusual as the consolidated schedule is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a consolidated schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization?s consolidated schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Period of Performance Significant Deficiency in Internal Control over Compliance and Other Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization claimed a portion of expenses that benefited the period outside of the period of performance, which was November 1, 2021, to October 31, 2023. During our testing, there was no documentation of review and approval of expenses for a portion of the sample selected. Cause: The Organization did not have an internal control process in place to ensure that allowable expenses excluded costs incurred prior to the period of performance. Effect: The Organization incorrectly submitted allowable expenses to the grant outside of the grant period of performance. Questioned Costs: There were no questioned costs in excess of $25,000 required to be reported. A nonstatistical sample of 60 ($21,300) out of 1,240 direct program expenditures were tested for period of performance. Of these 60 items, there was an error in one of the expenditures tested relating to $335 of costs benefiting 2021 and this error was determined to be isolated in nature. Of these 60, 45 did not show evidence of proper review and approval prior to payment. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all allowable expenses submitted under the grant are reviewed and approved prior to payment in order to make sure it is in the correct period of performance. Views of Responsible Officials: Management agrees with the finding.
2022-003 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with preparation of the consolidated schedule is not unusual as the consolidated schedule is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a consolidated schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization?s consolidated schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Period of Performance Significant Deficiency in Internal Control over Compliance and Other Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization claimed a portion of expenses that benefited the period outside of the period of performance, which was November 1, 2021, to October 31, 2023. During our testing, there was no documentation of review and approval of expenses for a portion of the sample selected. Cause: The Organization did not have an internal control process in place to ensure that allowable expenses excluded costs incurred prior to the period of performance. Effect: The Organization incorrectly submitted allowable expenses to the grant outside of the grant period of performance. Questioned Costs: There were no questioned costs in excess of $25,000 required to be reported. A nonstatistical sample of 60 ($21,300) out of 1,240 direct program expenditures were tested for period of performance. Of these 60 items, there was an error in one of the expenditures tested relating to $335 of costs benefiting 2021 and this error was determined to be isolated in nature. Of these 60, 45 did not show evidence of proper review and approval prior to payment. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all allowable expenses submitted under the grant are reviewed and approved prior to payment in order to make sure it is in the correct period of performance. Views of Responsible Officials: Management agrees with the finding.
2022-003 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with preparation of the consolidated schedule is not unusual as the consolidated schedule is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a consolidated schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization?s consolidated schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Period of Performance Significant Deficiency in Internal Control over Compliance and Other Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization claimed a portion of expenses that benefited the period outside of the period of performance, which was November 1, 2021, to October 31, 2023. During our testing, there was no documentation of review and approval of expenses for a portion of the sample selected. Cause: The Organization did not have an internal control process in place to ensure that allowable expenses excluded costs incurred prior to the period of performance. Effect: The Organization incorrectly submitted allowable expenses to the grant outside of the grant period of performance. Questioned Costs: There were no questioned costs in excess of $25,000 required to be reported. A nonstatistical sample of 60 ($21,300) out of 1,240 direct program expenditures were tested for period of performance. Of these 60 items, there was an error in one of the expenditures tested relating to $335 of costs benefiting 2021 and this error was determined to be isolated in nature. Of these 60, 45 did not show evidence of proper review and approval prior to payment. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all allowable expenses submitted under the grant are reviewed and approved prior to payment in order to make sure it is in the correct period of performance. Views of Responsible Officials: Management agrees with the finding.
2022-003 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with preparation of the consolidated schedule is not unusual as the consolidated schedule is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a consolidated schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization?s consolidated schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Period of Performance Significant Deficiency in Internal Control over Compliance and Other Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization claimed a portion of expenses that benefited the period outside of the period of performance, which was November 1, 2021, to October 31, 2023. During our testing, there was no documentation of review and approval of expenses for a portion of the sample selected. Cause: The Organization did not have an internal control process in place to ensure that allowable expenses excluded costs incurred prior to the period of performance. Effect: The Organization incorrectly submitted allowable expenses to the grant outside of the grant period of performance. Questioned Costs: There were no questioned costs in excess of $25,000 required to be reported. A nonstatistical sample of 60 ($21,300) out of 1,240 direct program expenditures were tested for period of performance. Of these 60 items, there was an error in one of the expenditures tested relating to $335 of costs benefiting 2021 and this error was determined to be isolated in nature. Of these 60, 45 did not show evidence of proper review and approval prior to payment. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all allowable expenses submitted under the grant are reviewed and approved prior to payment in order to make sure it is in the correct period of performance. Views of Responsible Officials: Management agrees with the finding.
2022-003 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with preparation of the consolidated schedule is not unusual as the consolidated schedule is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a consolidated schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization?s consolidated schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Period of Performance Significant Deficiency in Internal Control over Compliance and Other Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization claimed a portion of expenses that benefited the period outside of the period of performance, which was November 1, 2021, to October 31, 2023. During our testing, there was no documentation of review and approval of expenses for a portion of the sample selected. Cause: The Organization did not have an internal control process in place to ensure that allowable expenses excluded costs incurred prior to the period of performance. Effect: The Organization incorrectly submitted allowable expenses to the grant outside of the grant period of performance. Questioned Costs: There were no questioned costs in excess of $25,000 required to be reported. A nonstatistical sample of 60 ($21,300) out of 1,240 direct program expenditures were tested for period of performance. Of these 60 items, there was an error in one of the expenditures tested relating to $335 of costs benefiting 2021 and this error was determined to be isolated in nature. Of these 60, 45 did not show evidence of proper review and approval prior to payment. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all allowable expenses submitted under the grant are reviewed and approved prior to payment in order to make sure it is in the correct period of performance. Views of Responsible Officials: Management agrees with the finding.
2022-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: 2 CFR 200.33(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statues, regulations, and conditions of the federal award. The Organization is required to submit an accurate report to HHS for each filing period of funds were received. Condition: The Organization erroneously reported $226,571 in expenses on the Period 4 Department of Health and Human Services special report. Cause: The Organization did not have an internal control process in place to ensure the reporting portal input fields for expenses was accurate. Effect: While the calculation error provided a difference between the lost revenues on the HHS special report and the lost revenue calculation, the Organization had excess lost revenues available to be applied. This reporting error also indicated there is a lack of policies governing the review and approval of the HHS special report. Questioned Costs: None reported. The Organization had excess lost revenues available to be applied. Context: Key line items were tested on the Period 4 Department of Health and Human Services special report. The HHS special reports included total expense errors of $226,571. The Organization had excess lost revenues from the Period 4 HHS reports that totaled $2,362,453. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all reports to HHS are reviewed and approved prior to submission to ensure accuracy of the reports and meet the requirements of the federal program . Views of Responsible Officials: Management agrees with the finding.
2022-002 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization?s calculation of lost revenue claimed under the federal program as an allowable cost was not subjected to formal review or approval by a separate individual outside of the preparer. Cause: The Organization did not have an adequate internal control policy to ensure review and approval of the lost revenue calculation claimed under the federal program was documented in accordance with guidance. Effect: The lack of adequate policies governing review and approval increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs: None reported. Context: The lost revenue calculation for all applicable quarters was tested. Repeat Finding from Prior Years: No Recommendation: We recommend the Organization implement a control process which includes a secondary review and documented approval of the lost revenue calculation under the federal program. Views of Responsible Officials: Management agrees with the finding.
2022-003 Department of Housing and Urban Development Federal Assistance Listing #14.267 Continuum of Care Program Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with preparation of the consolidated schedule is not unusual as the consolidated schedule is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a consolidated schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization?s consolidated schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.