Audit 291571

FY End
2023-09-30
Total Expended
$2.48M
Findings
14
Programs
12
Organization: Alexander Youth Network (NC)
Year: 2023 Accepted: 2024-02-21
Auditor: Bdo USA PC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
370064 2023-001 - - B
370065 2023-001 - - B
370066 2023-002 Significant Deficiency Yes L
370067 2023-002 Significant Deficiency Yes L
370068 2023-002 Significant Deficiency Yes L
370069 2023-001 - - B
370070 2023-002 Significant Deficiency Yes L
946506 2023-001 - - B
946507 2023-001 - - B
946508 2023-002 Significant Deficiency Yes L
946509 2023-002 Significant Deficiency Yes L
946510 2023-002 Significant Deficiency Yes L
946511 2023-001 - - B
946512 2023-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.550 Transitional Living for Homeless Youth $429,726 Yes 2
93.958 Block Grants for Community Mental Health Services $404,564 - 0
93.623 Basic Center Grant $400,000 Yes 1
14.267 Continuum of Care Program $213,299 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $147,987 Yes 2
93.658 Foster Care_title IV-E $110,850 - 0
14.239 Home Investment Partnerships Program $86,734 - 0
14.231 Emergency Solutions Grant Program $74,435 - 0
14.218 Community Development Block Grants/entitlement Grants $45,356 - 0
93.556 Promoting Safe and Stable Families $43,714 - 0
16.575 Crime Victim Assistance $33,467 - 0
10.558 Child and Adult Care Food Program $19,753 - 0

Contacts

Name Title Type
WVGWMR1HKFZ6 Manuel Gomez Auditee
7043668712 Michael Botzis 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 cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect costs are charged to federal grants. As a result, the Organization did not utilize the 10% de minimis indirect cost rate, as provided under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Alexander Youth Network and Subsidiaries (the Organization”) for the year ended September 30, 2023. The information in the 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 (the “Uniform Guidance”). Because the Schedule represents only a selected portion of the Organization’s operations, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of the Organization.
Title: Entities Included in the Schedule Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect costs are charged to federal grants. As a result, the Organization did not utilize the 10% de minimis indirect cost rate, as provided under the Uniform Guidance. Entities included in the Schedule are Alexander Youth Network and its wholly owned subsidiaries, The Relatives, Inc. and Youth Focus, Inc.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect costs are charged to federal grants. As a result, the Organization did not utilize the 10% de minimis indirect cost rate, as provided under the Uniform Guidance. The Organization did not provide any funding to subrecipients during the year ended September 30, 2023.

Finding Details

Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): B. Allowable Costs: In accordance with 2 CFR § 200.403(e), costs must be determined in accordance with generally accepted accounting principles. Additionally, costs must be adequately documented (2 CFR 200.403(g)). Condition: For 3 out of the 26 transactions selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the expenditures were recorded for an inaccurate amount. For 1 out of 25 transactions selected for the Transitional Living for Homeless Youth program, the expenditure was not accrued in the appropriate fiscal year in accordance with U.S. GAAP. Cause: Administrative oversight in expenditure review caused inaccurate recording of expenditures. Additionally, the Organization did not have policies in place to review year-end grant expenditures for proper cutoff below a certain threshold. Effect or Potential Effect: The Organization was not in compliance with allowable cost requirements. Questioned Costs: Below reportable threshold. Context: Federal expenditures must meet allowable cost requirements in accordance with 2 CFR 200. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the Organization enhance its procedures over allowable costs. Views of Responsible Officials and Planned Corrective Actions: An additional level of review by Director of Finance and Business will be added to ensure accuracy of expenditures. Management will add additional controls to year end check list to identify and accrue any expenses incurred on or prior to year end.
Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): B. Allowable Costs: In accordance with 2 CFR § 200.403(e), costs must be determined in accordance with generally accepted accounting principles. Additionally, costs must be adequately documented (2 CFR 200.403(g)). Condition: For 3 out of the 26 transactions selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the expenditures were recorded for an inaccurate amount. For 1 out of 25 transactions selected for the Transitional Living for Homeless Youth program, the expenditure was not accrued in the appropriate fiscal year in accordance with U.S. GAAP. Cause: Administrative oversight in expenditure review caused inaccurate recording of expenditures. Additionally, the Organization did not have policies in place to review year-end grant expenditures for proper cutoff below a certain threshold. Effect or Potential Effect: The Organization was not in compliance with allowable cost requirements. Questioned Costs: Below reportable threshold. Context: Federal expenditures must meet allowable cost requirements in accordance with 2 CFR 200. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the Organization enhance its procedures over allowable costs. Views of Responsible Officials and Planned Corrective Actions: An additional level of review by Director of Finance and Business will be added to ensure accuracy of expenditures. Management will add additional controls to year end check list to identify and accrue any expenses incurred on or prior to year end.
FINDING 2023-002 Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Basic Center Grant (ALN 93.623) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting: The non-federal entity must submit performance reports at the interval required by the federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity (2 CFR 200.329 (c)(1)). Condition: For 2 out of the 5 reports selected for the Transitional Living for Homeless Youth program, the reports were not submitted within the required timeframe. For 2 out of the 8 reports selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the reports were not submitted within the required timeframe. For 3 out of the 8 reports selected, there was no evidence of submission. For 2 out of the 5 reports selected for the Basic Grant program, the reports were not submitted within the required timeframe. Cause: Lack of administrative oversight in regard to periodic reporting. Effect or Potential Effect: The Organization was not in compliance with the reporting requirements. Questioned Costs: None. Context: The U.S. Department of Health and Human Services requires semi-annual federal financial reports be submitted into the HHS Payment Management System (PMS) and semi-annual performance progress reports be submitted into the GrantSolutions system 30 days after the end of the semi-annual period. For 2 semi-annual financial reports selected and 2 semi-annual performance report selected, the reports were not submitted within the required timeframe. The pass-through entity, Mecklenburg County, requires subrecipients to submit monthly expenditure and performance reports via email 15 days after each month end. For 2 months selected, the reports were not submitted within the required timeframe. For 3 months selected, the Organization was unable to provide evidence of submission. Identification as a Repeat Finding: 2022-001 Recommendation: We recommend the Organization enhance its procedures to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions: To prevent further late reports, internal calendar notifications will be added to the Executive Director and Program Director’s calendars. The Director of Finance & Business will monitor status of report submissions. The Chief of Staff of the program will maintain adequate documentation of report submissions.
FINDING 2023-002 Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Basic Center Grant (ALN 93.623) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting: The non-federal entity must submit performance reports at the interval required by the federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity (2 CFR 200.329 (c)(1)). Condition: For 2 out of the 5 reports selected for the Transitional Living for Homeless Youth program, the reports were not submitted within the required timeframe. For 2 out of the 8 reports selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the reports were not submitted within the required timeframe. For 3 out of the 8 reports selected, there was no evidence of submission. For 2 out of the 5 reports selected for the Basic Grant program, the reports were not submitted within the required timeframe. Cause: Lack of administrative oversight in regard to periodic reporting. Effect or Potential Effect: The Organization was not in compliance with the reporting requirements. Questioned Costs: None. Context: The U.S. Department of Health and Human Services requires semi-annual federal financial reports be submitted into the HHS Payment Management System (PMS) and semi-annual performance progress reports be submitted into the GrantSolutions system 30 days after the end of the semi-annual period. For 2 semi-annual financial reports selected and 2 semi-annual performance report selected, the reports were not submitted within the required timeframe. The pass-through entity, Mecklenburg County, requires subrecipients to submit monthly expenditure and performance reports via email 15 days after each month end. For 2 months selected, the reports were not submitted within the required timeframe. For 3 months selected, the Organization was unable to provide evidence of submission. Identification as a Repeat Finding: 2022-001 Recommendation: We recommend the Organization enhance its procedures to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions: To prevent further late reports, internal calendar notifications will be added to the Executive Director and Program Director’s calendars. The Director of Finance & Business will monitor status of report submissions. The Chief of Staff of the program will maintain adequate documentation of report submissions.
FINDING 2023-002 Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Basic Center Grant (ALN 93.623) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting: The non-federal entity must submit performance reports at the interval required by the federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity (2 CFR 200.329 (c)(1)). Condition: For 2 out of the 5 reports selected for the Transitional Living for Homeless Youth program, the reports were not submitted within the required timeframe. For 2 out of the 8 reports selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the reports were not submitted within the required timeframe. For 3 out of the 8 reports selected, there was no evidence of submission. For 2 out of the 5 reports selected for the Basic Grant program, the reports were not submitted within the required timeframe. Cause: Lack of administrative oversight in regard to periodic reporting. Effect or Potential Effect: The Organization was not in compliance with the reporting requirements. Questioned Costs: None. Context: The U.S. Department of Health and Human Services requires semi-annual federal financial reports be submitted into the HHS Payment Management System (PMS) and semi-annual performance progress reports be submitted into the GrantSolutions system 30 days after the end of the semi-annual period. For 2 semi-annual financial reports selected and 2 semi-annual performance report selected, the reports were not submitted within the required timeframe. The pass-through entity, Mecklenburg County, requires subrecipients to submit monthly expenditure and performance reports via email 15 days after each month end. For 2 months selected, the reports were not submitted within the required timeframe. For 3 months selected, the Organization was unable to provide evidence of submission. Identification as a Repeat Finding: 2022-001 Recommendation: We recommend the Organization enhance its procedures to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions: To prevent further late reports, internal calendar notifications will be added to the Executive Director and Program Director’s calendars. The Director of Finance & Business will monitor status of report submissions. The Chief of Staff of the program will maintain adequate documentation of report submissions.
Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): B. Allowable Costs: In accordance with 2 CFR § 200.403(e), costs must be determined in accordance with generally accepted accounting principles. Additionally, costs must be adequately documented (2 CFR 200.403(g)). Condition: For 3 out of the 26 transactions selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the expenditures were recorded for an inaccurate amount. For 1 out of 25 transactions selected for the Transitional Living for Homeless Youth program, the expenditure was not accrued in the appropriate fiscal year in accordance with U.S. GAAP. Cause: Administrative oversight in expenditure review caused inaccurate recording of expenditures. Additionally, the Organization did not have policies in place to review year-end grant expenditures for proper cutoff below a certain threshold. Effect or Potential Effect: The Organization was not in compliance with allowable cost requirements. Questioned Costs: Below reportable threshold. Context: Federal expenditures must meet allowable cost requirements in accordance with 2 CFR 200. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the Organization enhance its procedures over allowable costs. Views of Responsible Officials and Planned Corrective Actions: An additional level of review by Director of Finance and Business will be added to ensure accuracy of expenditures. Management will add additional controls to year end check list to identify and accrue any expenses incurred on or prior to year end.
FINDING 2023-002 Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Basic Center Grant (ALN 93.623) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting: The non-federal entity must submit performance reports at the interval required by the federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity (2 CFR 200.329 (c)(1)). Condition: For 2 out of the 5 reports selected for the Transitional Living for Homeless Youth program, the reports were not submitted within the required timeframe. For 2 out of the 8 reports selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the reports were not submitted within the required timeframe. For 3 out of the 8 reports selected, there was no evidence of submission. For 2 out of the 5 reports selected for the Basic Grant program, the reports were not submitted within the required timeframe. Cause: Lack of administrative oversight in regard to periodic reporting. Effect or Potential Effect: The Organization was not in compliance with the reporting requirements. Questioned Costs: None. Context: The U.S. Department of Health and Human Services requires semi-annual federal financial reports be submitted into the HHS Payment Management System (PMS) and semi-annual performance progress reports be submitted into the GrantSolutions system 30 days after the end of the semi-annual period. For 2 semi-annual financial reports selected and 2 semi-annual performance report selected, the reports were not submitted within the required timeframe. The pass-through entity, Mecklenburg County, requires subrecipients to submit monthly expenditure and performance reports via email 15 days after each month end. For 2 months selected, the reports were not submitted within the required timeframe. For 3 months selected, the Organization was unable to provide evidence of submission. Identification as a Repeat Finding: 2022-001 Recommendation: We recommend the Organization enhance its procedures to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions: To prevent further late reports, internal calendar notifications will be added to the Executive Director and Program Director’s calendars. The Director of Finance & Business will monitor status of report submissions. The Chief of Staff of the program will maintain adequate documentation of report submissions.
Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): B. Allowable Costs: In accordance with 2 CFR § 200.403(e), costs must be determined in accordance with generally accepted accounting principles. Additionally, costs must be adequately documented (2 CFR 200.403(g)). Condition: For 3 out of the 26 transactions selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the expenditures were recorded for an inaccurate amount. For 1 out of 25 transactions selected for the Transitional Living for Homeless Youth program, the expenditure was not accrued in the appropriate fiscal year in accordance with U.S. GAAP. Cause: Administrative oversight in expenditure review caused inaccurate recording of expenditures. Additionally, the Organization did not have policies in place to review year-end grant expenditures for proper cutoff below a certain threshold. Effect or Potential Effect: The Organization was not in compliance with allowable cost requirements. Questioned Costs: Below reportable threshold. Context: Federal expenditures must meet allowable cost requirements in accordance with 2 CFR 200. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the Organization enhance its procedures over allowable costs. Views of Responsible Officials and Planned Corrective Actions: An additional level of review by Director of Finance and Business will be added to ensure accuracy of expenditures. Management will add additional controls to year end check list to identify and accrue any expenses incurred on or prior to year end.
Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): B. Allowable Costs: In accordance with 2 CFR § 200.403(e), costs must be determined in accordance with generally accepted accounting principles. Additionally, costs must be adequately documented (2 CFR 200.403(g)). Condition: For 3 out of the 26 transactions selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the expenditures were recorded for an inaccurate amount. For 1 out of 25 transactions selected for the Transitional Living for Homeless Youth program, the expenditure was not accrued in the appropriate fiscal year in accordance with U.S. GAAP. Cause: Administrative oversight in expenditure review caused inaccurate recording of expenditures. Additionally, the Organization did not have policies in place to review year-end grant expenditures for proper cutoff below a certain threshold. Effect or Potential Effect: The Organization was not in compliance with allowable cost requirements. Questioned Costs: Below reportable threshold. Context: Federal expenditures must meet allowable cost requirements in accordance with 2 CFR 200. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the Organization enhance its procedures over allowable costs. Views of Responsible Officials and Planned Corrective Actions: An additional level of review by Director of Finance and Business will be added to ensure accuracy of expenditures. Management will add additional controls to year end check list to identify and accrue any expenses incurred on or prior to year end.
FINDING 2023-002 Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Basic Center Grant (ALN 93.623) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting: The non-federal entity must submit performance reports at the interval required by the federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity (2 CFR 200.329 (c)(1)). Condition: For 2 out of the 5 reports selected for the Transitional Living for Homeless Youth program, the reports were not submitted within the required timeframe. For 2 out of the 8 reports selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the reports were not submitted within the required timeframe. For 3 out of the 8 reports selected, there was no evidence of submission. For 2 out of the 5 reports selected for the Basic Grant program, the reports were not submitted within the required timeframe. Cause: Lack of administrative oversight in regard to periodic reporting. Effect or Potential Effect: The Organization was not in compliance with the reporting requirements. Questioned Costs: None. Context: The U.S. Department of Health and Human Services requires semi-annual federal financial reports be submitted into the HHS Payment Management System (PMS) and semi-annual performance progress reports be submitted into the GrantSolutions system 30 days after the end of the semi-annual period. For 2 semi-annual financial reports selected and 2 semi-annual performance report selected, the reports were not submitted within the required timeframe. The pass-through entity, Mecklenburg County, requires subrecipients to submit monthly expenditure and performance reports via email 15 days after each month end. For 2 months selected, the reports were not submitted within the required timeframe. For 3 months selected, the Organization was unable to provide evidence of submission. Identification as a Repeat Finding: 2022-001 Recommendation: We recommend the Organization enhance its procedures to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions: To prevent further late reports, internal calendar notifications will be added to the Executive Director and Program Director’s calendars. The Director of Finance & Business will monitor status of report submissions. The Chief of Staff of the program will maintain adequate documentation of report submissions.
FINDING 2023-002 Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Basic Center Grant (ALN 93.623) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting: The non-federal entity must submit performance reports at the interval required by the federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity (2 CFR 200.329 (c)(1)). Condition: For 2 out of the 5 reports selected for the Transitional Living for Homeless Youth program, the reports were not submitted within the required timeframe. For 2 out of the 8 reports selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the reports were not submitted within the required timeframe. For 3 out of the 8 reports selected, there was no evidence of submission. For 2 out of the 5 reports selected for the Basic Grant program, the reports were not submitted within the required timeframe. Cause: Lack of administrative oversight in regard to periodic reporting. Effect or Potential Effect: The Organization was not in compliance with the reporting requirements. Questioned Costs: None. Context: The U.S. Department of Health and Human Services requires semi-annual federal financial reports be submitted into the HHS Payment Management System (PMS) and semi-annual performance progress reports be submitted into the GrantSolutions system 30 days after the end of the semi-annual period. For 2 semi-annual financial reports selected and 2 semi-annual performance report selected, the reports were not submitted within the required timeframe. The pass-through entity, Mecklenburg County, requires subrecipients to submit monthly expenditure and performance reports via email 15 days after each month end. For 2 months selected, the reports were not submitted within the required timeframe. For 3 months selected, the Organization was unable to provide evidence of submission. Identification as a Repeat Finding: 2022-001 Recommendation: We recommend the Organization enhance its procedures to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions: To prevent further late reports, internal calendar notifications will be added to the Executive Director and Program Director’s calendars. The Director of Finance & Business will monitor status of report submissions. The Chief of Staff of the program will maintain adequate documentation of report submissions.
FINDING 2023-002 Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Basic Center Grant (ALN 93.623) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting: The non-federal entity must submit performance reports at the interval required by the federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity (2 CFR 200.329 (c)(1)). Condition: For 2 out of the 5 reports selected for the Transitional Living for Homeless Youth program, the reports were not submitted within the required timeframe. For 2 out of the 8 reports selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the reports were not submitted within the required timeframe. For 3 out of the 8 reports selected, there was no evidence of submission. For 2 out of the 5 reports selected for the Basic Grant program, the reports were not submitted within the required timeframe. Cause: Lack of administrative oversight in regard to periodic reporting. Effect or Potential Effect: The Organization was not in compliance with the reporting requirements. Questioned Costs: None. Context: The U.S. Department of Health and Human Services requires semi-annual federal financial reports be submitted into the HHS Payment Management System (PMS) and semi-annual performance progress reports be submitted into the GrantSolutions system 30 days after the end of the semi-annual period. For 2 semi-annual financial reports selected and 2 semi-annual performance report selected, the reports were not submitted within the required timeframe. The pass-through entity, Mecklenburg County, requires subrecipients to submit monthly expenditure and performance reports via email 15 days after each month end. For 2 months selected, the reports were not submitted within the required timeframe. For 3 months selected, the Organization was unable to provide evidence of submission. Identification as a Repeat Finding: 2022-001 Recommendation: We recommend the Organization enhance its procedures to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions: To prevent further late reports, internal calendar notifications will be added to the Executive Director and Program Director’s calendars. The Director of Finance & Business will monitor status of report submissions. The Chief of Staff of the program will maintain adequate documentation of report submissions.
Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): B. Allowable Costs: In accordance with 2 CFR § 200.403(e), costs must be determined in accordance with generally accepted accounting principles. Additionally, costs must be adequately documented (2 CFR 200.403(g)). Condition: For 3 out of the 26 transactions selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the expenditures were recorded for an inaccurate amount. For 1 out of 25 transactions selected for the Transitional Living for Homeless Youth program, the expenditure was not accrued in the appropriate fiscal year in accordance with U.S. GAAP. Cause: Administrative oversight in expenditure review caused inaccurate recording of expenditures. Additionally, the Organization did not have policies in place to review year-end grant expenditures for proper cutoff below a certain threshold. Effect or Potential Effect: The Organization was not in compliance with allowable cost requirements. Questioned Costs: Below reportable threshold. Context: Federal expenditures must meet allowable cost requirements in accordance with 2 CFR 200. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the Organization enhance its procedures over allowable costs. Views of Responsible Officials and Planned Corrective Actions: An additional level of review by Director of Finance and Business will be added to ensure accuracy of expenditures. Management will add additional controls to year end check list to identify and accrue any expenses incurred on or prior to year end.
FINDING 2023-002 Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Basic Center Grant (ALN 93.623) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting: The non-federal entity must submit performance reports at the interval required by the federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity (2 CFR 200.329 (c)(1)). Condition: For 2 out of the 5 reports selected for the Transitional Living for Homeless Youth program, the reports were not submitted within the required timeframe. For 2 out of the 8 reports selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the reports were not submitted within the required timeframe. For 3 out of the 8 reports selected, there was no evidence of submission. For 2 out of the 5 reports selected for the Basic Grant program, the reports were not submitted within the required timeframe. Cause: Lack of administrative oversight in regard to periodic reporting. Effect or Potential Effect: The Organization was not in compliance with the reporting requirements. Questioned Costs: None. Context: The U.S. Department of Health and Human Services requires semi-annual federal financial reports be submitted into the HHS Payment Management System (PMS) and semi-annual performance progress reports be submitted into the GrantSolutions system 30 days after the end of the semi-annual period. For 2 semi-annual financial reports selected and 2 semi-annual performance report selected, the reports were not submitted within the required timeframe. The pass-through entity, Mecklenburg County, requires subrecipients to submit monthly expenditure and performance reports via email 15 days after each month end. For 2 months selected, the reports were not submitted within the required timeframe. For 3 months selected, the Organization was unable to provide evidence of submission. Identification as a Repeat Finding: 2022-001 Recommendation: We recommend the Organization enhance its procedures to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions: To prevent further late reports, internal calendar notifications will be added to the Executive Director and Program Director’s calendars. The Director of Finance & Business will monitor status of report submissions. The Chief of Staff of the program will maintain adequate documentation of report submissions.