Audit 297250

Federal Award: U.S. Department of Housing and Urban Development CFDA# 14.267 Continuum of Care Grant No. MI0071L5F011811 U.S. Department of Health and Human Services CFDA# 93.224 HRSA Health Center Program No. H8ECS26571-06-06 Finding Type: Material Weakness – Financial Management Criteria: The Uniform Guidance requires that a non-Federal entity maintain a financial management system that accurately accounts for the receipt and expenditure of Federal grant funds. Condition: Expenditures reported in the general ledger for the Continuum of Care Grant of $960,405 did not agree with the expenditures reported to HUD of $1,071,510 and for which HUD provided reimbursement. This condition resulted in the Organization being required to make an adjustment to reduce grant reported revenue and record an amount due to HUD for excess funds received. Expenditures reported in the general ledger for the noted HRSA grant exceeded the amount reported and requested for reimbursement. DCCCM elected to use non-Federal funds to cover the excess expenditures. Effect: Noncompliance with the Uniform Guidance regarding financial management, including the receipt of HUD grant payments in excess of expenditures incurred. Cause: The lack of monitoring and review to ensure that the accounting records were in agreement with amounts requested from HUD and HRSA for grant reimbursement. Recommendation: DCCCMH should review and monitor general ledger accounts used to report Federal grant activity to ensure that recorded expenditures agree with amounts reported to HUD, HRSA, and other grantor agencies for reimbursement. Management Response: DCCCMH has hired a grant accountant who will ensure expenses claimed are accurately reflected in the books and records of DCCCMH. In addition, DCCCMH is hiring a General Ledger Accountant who will ensure all Balance Sheet accounts are reconciled monthly.

Federal Award: U.S. Department of Housing and Urban Development CFDA# 14.267 Continuum of Care Grant No. MI0071L5F011811 U.S. Department of Health and Human Services CFDA# 93.224 HRSA Health Center Program No. H8ECS26571-06-06 Finding Type: Material Weakness – Financial Management Criteria: The Uniform Guidance requires that a non-Federal entity maintain a financial management system that accurately accounts for the receipt and expenditure of Federal grant funds. Condition: Expenditures reported in the general ledger for the Continuum of Care Grant of $960,405 did not agree with the expenditures reported to HUD of $1,071,510 and for which HUD provided reimbursement. This condition resulted in the Organization being required to make an adjustment to reduce grant reported revenue and record an amount due to HUD for excess funds received. Expenditures reported in the general ledger for the noted HRSA grant exceeded the amount reported and requested for reimbursement. DCCCM elected to use non-Federal funds to cover the excess expenditures. Effect: Noncompliance with the Uniform Guidance regarding financial management, including the receipt of HUD grant payments in excess of expenditures incurred. Cause: The lack of monitoring and review to ensure that the accounting records were in agreement with amounts requested from HUD and HRSA for grant reimbursement. Recommendation: DCCCMH should review and monitor general ledger accounts used to report Federal grant activity to ensure that recorded expenditures agree with amounts reported to HUD, HRSA, and other grantor agencies for reimbursement. Management Response: DCCCMH has hired a grant accountant who will ensure expenses claimed are accurately reflected in the books and records of DCCCMH. In addition, DCCCMH is hiring a General Ledger Accountant who will ensure all Balance Sheet accounts are reconciled monthly.