FAC Explorer

Audit 300452

FY End
2023-06-30
Total Expended
$876,033
Findings
4
Programs
3
Organization: Homeless and Hunger Coalition of Northwest Florida, Inc. (FL)
Year: 2023 Accepted: 2024-03-29
Auditor: Tipton Marler Garner & Chastain

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
389482 2023-002 Material Weakness Yes ABFGIN
389483 2023-003 Significant Deficiency - ABFGIN
965924 2023-002 Material Weakness Yes ABFGIN
965925 2023-003 Significant Deficiency - ABFGIN

Programs

ALN Program Spent Major Findings
14.231 Emergency Solutions Grant Program $784,043 Yes 2
14.267 Continuum of Care Program $59,740 - 0
93.558 Temporary Assistance for Needy Families $32,250 - 0

Contacts

Name Title Type
P3QHBQHRD5F5 Michael Thomas Auditee
6013311152 Amy Pfau Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Both Rate Explanation: Homeless and Hunger Coalition of Northwest Florida, Inc. records expenditures of federal awards using the direct cost method and the 10% de minimis indirect cost rate depending on which is allowable by the grantor, both of which are allowed in accordance with the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Homeless and Hunger Coalition of Northwest Florida, Inc. under programs of the federal government for the year ended June 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of Homeless and Hunger Coalition of Northwest Florida, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Homeless and Hunger Coalition of Northwest Florida, Inc.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Both Rate Explanation: Homeless and Hunger Coalition of Northwest Florida, Inc. records expenditures of federal awards using the direct cost method and the 10% de minimis indirect cost rate depending on which is allowable by the grantor, both of which are allowed in accordance with the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE C – INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Both Rate Explanation: Homeless and Hunger Coalition of Northwest Florida, Inc. records expenditures of federal awards using the direct cost method and the 10% de minimis indirect cost rate depending on which is allowable by the grantor, both of which are allowed in accordance with the Uniform Guidance. Homeless and Hunger Coalition of Northwest Florida, Inc. records expenditures of federal awards using the direct cost method and the 10% de minimis indirect cost rate depending on which is allowable by the grantor, both of which are allowed in accordance with the Uniform Guidance.
Title: NOTE D – CONTINGENCY Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Both Rate Explanation: Homeless and Hunger Coalition of Northwest Florida, Inc. records expenditures of federal awards using the direct cost method and the 10% de minimis indirect cost rate depending on which is allowable by the grantor, both of which are allowed in accordance with the Uniform Guidance. The grant revenue amounts received are subject to audit and adjustment. If any expenditures are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor would become a liability of the Organization. In the opinion of management, all grant expenditures are in compliance with the terms of the agreements and applicable federal laws and other applicable regulations.

Finding Details

Finding 2023-002
Federal Agency: U.S. Department of Housing and Urban Development Program: Emergency Solutions Grant & Emergency Solutions Grant – CV (CFDA No. 14.231) Finding Type: Material Weakness Questioned Costs: None Material Weakness: As discussed at Finding 2023-001, the Coalition's internal control procedure, which requires both the executive director and an additional authorized signer to approve invoices, has not been implemented. This step is essential for ensuring that expenses align with grant requirements, thereby offering a safeguard through the implementation of the Coalition's internal controls. The existing procedures mandate supervisory approval of documentation before the authorization of expenses for payment, but documentation was apparently not filed or notated correctly. This situation provides the opportunity for expenditures that do not comply with grant stipulations to occur without being detected promptly. It is recommended that the Coalition implement and follow controls adopted, including requiring the Executive Director along with one additional authorized signer to review all supporting documentation related to each expense and upon review, notate their approval with signature as audit evidence. The Coalition will implement the correction action plan discussed at Finding 2023-001 over all federal and state programs.
Finding 2023-003
Federal Agency: U.S. Department of Housing and Urban Development Program: Emergency Solutions Grant & Emergency Solutions Grant – CV (CFDA No. 14.231) Finding Type: Significant Deficiency Questioned Costs: None Condition: The Coalition does not have controls in place to ensure that level of effort and earmarking grant requirements are met. Criteria: The Coalition should have controls in place in order to provide reasonable assurance that level of effort, and earmarking grant requirements are met. Cause: Lack of proper controls over grant compliance requirements. Effect: The situation provides an opportunity for specific benchmarks within grant agreements to not be met and detected promptly. Recommendation: The Coalition should implement controls to ensure that all level of effort, earmarking, and other benchmarks as indicated in the grant agreements are met. Views of Responsible Officials and Planned Corrective Action: The Coalition shall maintain ongoing and updated guidance compliance requirements regarding the deliverables and administrative fees on each individual funding source as stated in grant documents and amendments from private, state, and federal sources. It will be the responsibility of executive staff to review on a monthly basis to make sure current guidance is followed.
Finding 2023-002
Federal Agency: U.S. Department of Housing and Urban Development Program: Emergency Solutions Grant & Emergency Solutions Grant – CV (CFDA No. 14.231) Finding Type: Material Weakness Questioned Costs: None Material Weakness: As discussed at Finding 2023-001, the Coalition's internal control procedure, which requires both the executive director and an additional authorized signer to approve invoices, has not been implemented. This step is essential for ensuring that expenses align with grant requirements, thereby offering a safeguard through the implementation of the Coalition's internal controls. The existing procedures mandate supervisory approval of documentation before the authorization of expenses for payment, but documentation was apparently not filed or notated correctly. This situation provides the opportunity for expenditures that do not comply with grant stipulations to occur without being detected promptly. It is recommended that the Coalition implement and follow controls adopted, including requiring the Executive Director along with one additional authorized signer to review all supporting documentation related to each expense and upon review, notate their approval with signature as audit evidence. The Coalition will implement the correction action plan discussed at Finding 2023-001 over all federal and state programs.
Finding 2023-003
Federal Agency: U.S. Department of Housing and Urban Development Program: Emergency Solutions Grant & Emergency Solutions Grant – CV (CFDA No. 14.231) Finding Type: Significant Deficiency Questioned Costs: None Condition: The Coalition does not have controls in place to ensure that level of effort and earmarking grant requirements are met. Criteria: The Coalition should have controls in place in order to provide reasonable assurance that level of effort, and earmarking grant requirements are met. Cause: Lack of proper controls over grant compliance requirements. Effect: The situation provides an opportunity for specific benchmarks within grant agreements to not be met and detected promptly. Recommendation: The Coalition should implement controls to ensure that all level of effort, earmarking, and other benchmarks as indicated in the grant agreements are met. Views of Responsible Officials and Planned Corrective Action: The Coalition shall maintain ongoing and updated guidance compliance requirements regarding the deliverables and administrative fees on each individual funding source as stated in grant documents and amendments from private, state, and federal sources. It will be the responsibility of executive staff to review on a monthly basis to make sure current guidance is followed.