FAC Explorer

Audit 291982

FY End
2023-06-30
Total Expended
$3.57M
Findings
2
Programs
8
Organization: Community Link, Programs of Travelers Aid Society of Central Carolinas (NC)
Year: 2023 Accepted: 2024-02-23
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
370411 2023-001 - - G
946853 2023-001 - - G

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $211,133 - 0
14.267 Continuum of Care Program $141,976 Yes 0
16.736 Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Stalking, Or Sexual Assault $130,361 - 0
14.169 Housing Counseling Assistance Program $100,000 - 0
14.231 Emergency Solutions Grant Program $98,157 - 0
99.U19 Housing Stability Counseling Program $23,888 - 0
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $20,181 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $19,497 - 0

Contacts

Name Title Type
WFFMDLBSV2B7 Tameka Gunn Auditee
7049439635 Jordan Miller Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 BASIS OF PRESENTATION Accounting Policies: NOTE 1 BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (schedule) includes the federal grant activity of Community Link, Programs of Travelers Aid Society of Central Carolinas, Inc. and Subsidiaries (the 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 (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. During the year ended June 30, 2023, the Organization received a waiver related to the matching requirement from the U.S. Department of Housing and Urban Development for the continuum of care program. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (schedule) includes the federal grant activity of Community Link, Programs of Travelers Aid Society of Central Carolinas, Inc. and Subsidiaries (the 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 (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. During the year ended June 30, 2023, the Organization received a waiver related to the matching requirement from the U.S. Department of Housing and Urban Development for the continuum of care program.
Title: NOTE 2 CONTINGENCIES Accounting Policies: NOTE 1 BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (schedule) includes the federal grant activity of Community Link, Programs of Travelers Aid Society of Central Carolinas, Inc. and Subsidiaries (the 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 (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. During the year ended June 30, 2023, the Organization received a waiver related to the matching requirement from the U.S. Department of Housing and Urban Development for the continuum of care program. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization is subject to audit examination by the funding sources of grants to determine its compliance with certain grant provisions. In the event, that expenditures could be disallowed through the audit, repayment of such disallowances could be required.
Title: NOTE 3 INDIRECT COST RATE Accounting Policies: NOTE 1 BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (schedule) includes the federal grant activity of Community Link, Programs of Travelers Aid Society of Central Carolinas, Inc. and Subsidiaries (the 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 (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. During the year ended June 30, 2023, the Organization received a waiver related to the matching requirement from the U.S. Department of Housing and Urban Development for the continuum of care program. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001: Noncompliance with Matching Requirement Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program (Northern PSH Combo and Piedmont) Assistance Listing Number: 14.267 Award Period: Northern PSH Combo (Grant no. NC 0045) April 1, 2022 to March 31, 2023 Piedmont (Grant no. NC 0221) June 1, 2022 to May 31, 2023 Type of Finding: Noncompliance Condition and Criteria: Matching requirement is 25% of all grant funds except for leasing funds. However, for Grant no. NC 0045 we noted that the Organization provided matching funds at approximately 5% and for Grant no. NC 0221 we noted that the Organization provided matching funds at approximately 6%. Total expenditures of federal awards was approximately $1.1 million for each of these grants. Cause: The Organization and HUD were both aware of the Organization’s past difficulties in securing sufficient matching funds for both of these grant programs. Accordingly, in the prior year HUD waived the matching requirement in order to provide the Organization with more time to attempt to secure sufficient matching funds. However, the Organization was not successful in that effort and HUD declined to provide a waiver that would extend past June 30, 2022. Effect: The Organization has not provided sufficient matching funds and as a result is not in compliance with the 25% matching requirement. This condition could result in the Organization losing funding due to noncompliance. However, as further discussed below the Organization is already in discussions with HUD regarding its potential discontinuance with these specific programs. Recommendation: It is our understanding that the Organization has been involved in on going discussions with HUD regarding its difficulty in securing sufficient matching funds for these two grant award programs. This has included discussions regarding amending the terms of the award agreements that would enable the Organization to become the direct lease which would result in a large portion of the funds related to these awards to become leasing funds which would not require a 25% match. However, completing such an amendment would require an extended amount of time as underlying leases currently with individual participants in the program would need to expire first before the Organization could become the lessee. Accordingly, the Organization has recently determined that these awards have become too costly to administer and is now in discussions with HUD regarding the objective of transferring these award programs to another entity. We recommend that the Organization continue these discussions with HUD in order to end its responsibilities for award programs that it has determined it is unable to comply with. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. The Organization will continue working with HUD to transfer these award programs to another entity that has more capacity of complying with all requirements. Name of the Contact Person Responsible for the Corrective Action: Tameka Gunn, President and Chief Executive Officer Planned Completion Date for the Corrective Action Plan: March 2024
Finding 2023-001
Finding 2023-001: Noncompliance with Matching Requirement Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program (Northern PSH Combo and Piedmont) Assistance Listing Number: 14.267 Award Period: Northern PSH Combo (Grant no. NC 0045) April 1, 2022 to March 31, 2023 Piedmont (Grant no. NC 0221) June 1, 2022 to May 31, 2023 Type of Finding: Noncompliance Condition and Criteria: Matching requirement is 25% of all grant funds except for leasing funds. However, for Grant no. NC 0045 we noted that the Organization provided matching funds at approximately 5% and for Grant no. NC 0221 we noted that the Organization provided matching funds at approximately 6%. Total expenditures of federal awards was approximately $1.1 million for each of these grants. Cause: The Organization and HUD were both aware of the Organization’s past difficulties in securing sufficient matching funds for both of these grant programs. Accordingly, in the prior year HUD waived the matching requirement in order to provide the Organization with more time to attempt to secure sufficient matching funds. However, the Organization was not successful in that effort and HUD declined to provide a waiver that would extend past June 30, 2022. Effect: The Organization has not provided sufficient matching funds and as a result is not in compliance with the 25% matching requirement. This condition could result in the Organization losing funding due to noncompliance. However, as further discussed below the Organization is already in discussions with HUD regarding its potential discontinuance with these specific programs. Recommendation: It is our understanding that the Organization has been involved in on going discussions with HUD regarding its difficulty in securing sufficient matching funds for these two grant award programs. This has included discussions regarding amending the terms of the award agreements that would enable the Organization to become the direct lease which would result in a large portion of the funds related to these awards to become leasing funds which would not require a 25% match. However, completing such an amendment would require an extended amount of time as underlying leases currently with individual participants in the program would need to expire first before the Organization could become the lessee. Accordingly, the Organization has recently determined that these awards have become too costly to administer and is now in discussions with HUD regarding the objective of transferring these award programs to another entity. We recommend that the Organization continue these discussions with HUD in order to end its responsibilities for award programs that it has determined it is unable to comply with. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. The Organization will continue working with HUD to transfer these award programs to another entity that has more capacity of complying with all requirements. Name of the Contact Person Responsible for the Corrective Action: Tameka Gunn, President and Chief Executive Officer Planned Completion Date for the Corrective Action Plan: March 2024