FAC Explorer

Audit 303835

FY End
2023-06-30
Total Expended
$2.09M
Findings
12
Programs
13
Organization: New London Homeless Hospitality Center, Inc. (CT)
Year: 2023 Accepted: 2024-04-18
Auditor: Hoyt Filippetti & Malaghan LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393695 2023-003 Material Weakness Yes A
393696 2023-004 Material Weakness Yes A
393697 2023-003 Material Weakness Yes A
393698 2023-004 Material Weakness Yes A
393699 2023-003 Material Weakness Yes A
393700 2023-004 Material Weakness Yes A
970137 2023-003 Material Weakness Yes A
970138 2023-004 Material Weakness Yes A
970139 2023-003 Material Weakness Yes A
970140 2023-004 Material Weakness Yes A
970141 2023-003 Material Weakness Yes A
970142 2023-004 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
14.231 Emergency Solutions Grant Program $487,189 Yes 2
64.024 Va Homeless Providers Grant and Per Diem Program $248,819 - 0
21.026 Homeowner Assistance Fund $179,505 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $133,606 Yes 2
93.667 Social Services Block Grant $113,318 - 0
21.023 Emergency Rental Assistance Program $61,000 - 0
97.024 Emergency Food and Shelter National Board Program $46,000 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $44,550 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $33,457 - 0
93.150 Projects for Assistance in Transition From Homelessness (path) $33,360 - 0
14.871 Section 8 Housing Choice Vouchers $30,178 Yes 0
16.736 Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Stalking, Or Sexual Assault $1,800 - 0
14.267 Continuum of Care Program $213 Yes 0

Contacts

Name Title Type
JHADM9YUWC67 Cathy Zall Auditee
8602272188 Susan Jones, CPA Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - ACCOUNTING BASIS BASIC FINANCIAL STATEMENTS Accounting Policies: The accounting policies of New London Homeless Hospitality Center, Inc. (the Center) conform to accounting principles generally accepted in the United States of America as applicable to nonprofit organizations. De Minimis Rate Used: Both Rate Explanation: New London Homeless Hospitality Center, Inc. has elected to use the 10% de Minimis indirect cost rate on select federal awards. The accounting policies of New London Homeless Hospitality Center, Inc. (the Center) conform to accounting principles generally accepted in the United States of America as applicable to nonprofit organizations.
Title: SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Accounting Policies: The accounting policies of New London Homeless Hospitality Center, Inc. (the Center) conform to accounting principles generally accepted in the United States of America as applicable to nonprofit organizations. De Minimis Rate Used: Both Rate Explanation: New London Homeless Hospitality Center, Inc. has elected to use the 10% de Minimis indirect cost rate on select federal awards. The accompanying schedule of expenditures of federal awards has been prepared on the accrual basis consistent with the preparation of the basic financial statements. Information included in the schedule of expenditures of federal awards is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). For cost reimbursement awards, revenues are recognized to the extent of expenditures. Expenditures have been recognized to the extent the related obligation was incurred within the applicable grant period and liquidated within 90 days after the end of the grant period. For performance-based awards, revenues are recognized to the extent of performance achieved during the grant period. New London Homeless Hospitality Center, Inc. has elected to use the 10% de Minimis indirect cost rate on select federal awards.

Finding Details

Finding 2023-003
2023-003 REPORTING ALLOWABLE/ALLOCABLE COSTS Grantors: U.S Department of Housing and Urban Development Award Names: Emergency Solutions Grant /Community Development Block Grant /Continuum of Care Award Year: Various Award Numbers: Various Assistance Listing Numbers: 14.231 / 14.228 / 14.267 Criteria: Costs reported and submitted for reimbursement should be based on a cost allocation plan and agree to the underlying accounting records. Condition: During our audit testing, we noted cost allocations included on submitted grant reports did not reconcile directly back to what was allocated in the underlying accounting records (general ledger). Cause: No individuals at the Center were periodically performing reconciling and other activities which would have served to ensure the cost allocation plan and underlying accounting records were in line and consistent with what was being reported to grantors. Effect: The amount of allocated costs reported and reimbursed by grantors could not be readily traced back to the underlying accounting records (general ledger). Questioned Costs: None noted. Recommendation: The Center should implement controls to ensure all reporting and requests for reimbursements submitted to grantors reconcile with the underlying accounting records as allocated. Management’s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
Finding 2023-004
2023-004 INTERNAL CONTROLS OVER ALLOWABLE COSTS Grantor: Various Award Name: Various Award Year: Various Award Numbers: Various Assistance Listing Number: Various Criteria: Title 2, Chapter 2, part 200 of the Code of Federal Regulations (2 CFR Part 200) establishes cost principles for determining costs applicable to federal awards with nonprofit organizations. An important method of adhering to these cost principles and ensuring allowable and allocable costs are charged to federal programs is through the use of a cost allocation plan. As important as the plan is, internal controls over the cost allocation plan are just as necessary. Nonprofit organizations must maintain internal controls over the allocation of costs to ensure costs are not over or under allocated, consistency across programs, and that they are traceable back to the accounting records themselves. Condition: During our audit procedures, we noted that although the Center maintains a cost allocation plan, there were no internal controls in place to ensure the plan was achieving the requirements referenced in the previous paragraph. The cost allocation plan was effectively existing and operating independently from the underlying accounting records. Cause: No individuals at the Center were periodically performing reconciling and other activities which would have served to ensure the cost allocation plan and underlying accounting records were in line and consistent. Effect: The Center incurs the risk of allocating disallowed costs to federal programs contrary to Federal Regulations. Questioned Costs: None noted. Recommendation: The Center should implement internal controls (periodic reconciliations, etc.) to ensure accuracy and consistency in allocations. Management’s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
Finding 2023-003
2023-003 REPORTING ALLOWABLE/ALLOCABLE COSTS Grantors: U.S Department of Housing and Urban Development Award Names: Emergency Solutions Grant /Community Development Block Grant /Continuum of Care Award Year: Various Award Numbers: Various Assistance Listing Numbers: 14.231 / 14.228 / 14.267 Criteria: Costs reported and submitted for reimbursement should be based on a cost allocation plan and agree to the underlying accounting records. Condition: During our audit testing, we noted cost allocations included on submitted grant reports did not reconcile directly back to what was allocated in the underlying accounting records (general ledger). Cause: No individuals at the Center were periodically performing reconciling and other activities which would have served to ensure the cost allocation plan and underlying accounting records were in line and consistent with what was being reported to grantors. Effect: The amount of allocated costs reported and reimbursed by grantors could not be readily traced back to the underlying accounting records (general ledger). Questioned Costs: None noted. Recommendation: The Center should implement controls to ensure all reporting and requests for reimbursements submitted to grantors reconcile with the underlying accounting records as allocated. Management’s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
Finding 2023-004
2023-004 INTERNAL CONTROLS OVER ALLOWABLE COSTS Grantor: Various Award Name: Various Award Year: Various Award Numbers: Various Assistance Listing Number: Various Criteria: Title 2, Chapter 2, part 200 of the Code of Federal Regulations (2 CFR Part 200) establishes cost principles for determining costs applicable to federal awards with nonprofit organizations. An important method of adhering to these cost principles and ensuring allowable and allocable costs are charged to federal programs is through the use of a cost allocation plan. As important as the plan is, internal controls over the cost allocation plan are just as necessary. Nonprofit organizations must maintain internal controls over the allocation of costs to ensure costs are not over or under allocated, consistency across programs, and that they are traceable back to the accounting records themselves. Condition: During our audit procedures, we noted that although the Center maintains a cost allocation plan, there were no internal controls in place to ensure the plan was achieving the requirements referenced in the previous paragraph. The cost allocation plan was effectively existing and operating independently from the underlying accounting records. Cause: No individuals at the Center were periodically performing reconciling and other activities which would have served to ensure the cost allocation plan and underlying accounting records were in line and consistent. Effect: The Center incurs the risk of allocating disallowed costs to federal programs contrary to Federal Regulations. Questioned Costs: None noted. Recommendation: The Center should implement internal controls (periodic reconciliations, etc.) to ensure accuracy and consistency in allocations. Management’s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
Finding 2023-003
2023-003 REPORTING ALLOWABLE/ALLOCABLE COSTS Grantors: U.S Department of Housing and Urban Development Award Names: Emergency Solutions Grant /Community Development Block Grant /Continuum of Care Award Year: Various Award Numbers: Various Assistance Listing Numbers: 14.231 / 14.228 / 14.267 Criteria: Costs reported and submitted for reimbursement should be based on a cost allocation plan and agree to the underlying accounting records. Condition: During our audit testing, we noted cost allocations included on submitted grant reports did not reconcile directly back to what was allocated in the underlying accounting records (general ledger). Cause: No individuals at the Center were periodically performing reconciling and other activities which would have served to ensure the cost allocation plan and underlying accounting records were in line and consistent with what was being reported to grantors. Effect: The amount of allocated costs reported and reimbursed by grantors could not be readily traced back to the underlying accounting records (general ledger). Questioned Costs: None noted. Recommendation: The Center should implement controls to ensure all reporting and requests for reimbursements submitted to grantors reconcile with the underlying accounting records as allocated. Management’s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
Finding 2023-004
2023-004 INTERNAL CONTROLS OVER ALLOWABLE COSTS Grantor: Various Award Name: Various Award Year: Various Award Numbers: Various Assistance Listing Number: Various Criteria: Title 2, Chapter 2, part 200 of the Code of Federal Regulations (2 CFR Part 200) establishes cost principles for determining costs applicable to federal awards with nonprofit organizations. An important method of adhering to these cost principles and ensuring allowable and allocable costs are charged to federal programs is through the use of a cost allocation plan. As important as the plan is, internal controls over the cost allocation plan are just as necessary. Nonprofit organizations must maintain internal controls over the allocation of costs to ensure costs are not over or under allocated, consistency across programs, and that they are traceable back to the accounting records themselves. Condition: During our audit procedures, we noted that although the Center maintains a cost allocation plan, there were no internal controls in place to ensure the plan was achieving the requirements referenced in the previous paragraph. The cost allocation plan was effectively existing and operating independently from the underlying accounting records. Cause: No individuals at the Center were periodically performing reconciling and other activities which would have served to ensure the cost allocation plan and underlying accounting records were in line and consistent. Effect: The Center incurs the risk of allocating disallowed costs to federal programs contrary to Federal Regulations. Questioned Costs: None noted. Recommendation: The Center should implement internal controls (periodic reconciliations, etc.) to ensure accuracy and consistency in allocations. Management’s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
Finding 2023-003
2023-003 REPORTING ALLOWABLE/ALLOCABLE COSTS Grantors: U.S Department of Housing and Urban Development Award Names: Emergency Solutions Grant /Community Development Block Grant /Continuum of Care Award Year: Various Award Numbers: Various Assistance Listing Numbers: 14.231 / 14.228 / 14.267 Criteria: Costs reported and submitted for reimbursement should be based on a cost allocation plan and agree to the underlying accounting records. Condition: During our audit testing, we noted cost allocations included on submitted grant reports did not reconcile directly back to what was allocated in the underlying accounting records (general ledger). Cause: No individuals at the Center were periodically performing reconciling and other activities which would have served to ensure the cost allocation plan and underlying accounting records were in line and consistent with what was being reported to grantors. Effect: The amount of allocated costs reported and reimbursed by grantors could not be readily traced back to the underlying accounting records (general ledger). Questioned Costs: None noted. Recommendation: The Center should implement controls to ensure all reporting and requests for reimbursements submitted to grantors reconcile with the underlying accounting records as allocated. Management’s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
Finding 2023-004
2023-004 INTERNAL CONTROLS OVER ALLOWABLE COSTS Grantor: Various Award Name: Various Award Year: Various Award Numbers: Various Assistance Listing Number: Various Criteria: Title 2, Chapter 2, part 200 of the Code of Federal Regulations (2 CFR Part 200) establishes cost principles for determining costs applicable to federal awards with nonprofit organizations. An important method of adhering to these cost principles and ensuring allowable and allocable costs are charged to federal programs is through the use of a cost allocation plan. As important as the plan is, internal controls over the cost allocation plan are just as necessary. Nonprofit organizations must maintain internal controls over the allocation of costs to ensure costs are not over or under allocated, consistency across programs, and that they are traceable back to the accounting records themselves. Condition: During our audit procedures, we noted that although the Center maintains a cost allocation plan, there were no internal controls in place to ensure the plan was achieving the requirements referenced in the previous paragraph. The cost allocation plan was effectively existing and operating independently from the underlying accounting records. Cause: No individuals at the Center were periodically performing reconciling and other activities which would have served to ensure the cost allocation plan and underlying accounting records were in line and consistent. Effect: The Center incurs the risk of allocating disallowed costs to federal programs contrary to Federal Regulations. Questioned Costs: None noted. Recommendation: The Center should implement internal controls (periodic reconciliations, etc.) to ensure accuracy and consistency in allocations. Management’s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
Finding 2023-003
2023-003 REPORTING ALLOWABLE/ALLOCABLE COSTS Grantors: U.S Department of Housing and Urban Development Award Names: Emergency Solutions Grant /Community Development Block Grant /Continuum of Care Award Year: Various Award Numbers: Various Assistance Listing Numbers: 14.231 / 14.228 / 14.267 Criteria: Costs reported and submitted for reimbursement should be based on a cost allocation plan and agree to the underlying accounting records. Condition: During our audit testing, we noted cost allocations included on submitted grant reports did not reconcile directly back to what was allocated in the underlying accounting records (general ledger). Cause: No individuals at the Center were periodically performing reconciling and other activities which would have served to ensure the cost allocation plan and underlying accounting records were in line and consistent with what was being reported to grantors. Effect: The amount of allocated costs reported and reimbursed by grantors could not be readily traced back to the underlying accounting records (general ledger). Questioned Costs: None noted. Recommendation: The Center should implement controls to ensure all reporting and requests for reimbursements submitted to grantors reconcile with the underlying accounting records as allocated. Management’s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
Finding 2023-004
2023-004 INTERNAL CONTROLS OVER ALLOWABLE COSTS Grantor: Various Award Name: Various Award Year: Various Award Numbers: Various Assistance Listing Number: Various Criteria: Title 2, Chapter 2, part 200 of the Code of Federal Regulations (2 CFR Part 200) establishes cost principles for determining costs applicable to federal awards with nonprofit organizations. An important method of adhering to these cost principles and ensuring allowable and allocable costs are charged to federal programs is through the use of a cost allocation plan. As important as the plan is, internal controls over the cost allocation plan are just as necessary. Nonprofit organizations must maintain internal controls over the allocation of costs to ensure costs are not over or under allocated, consistency across programs, and that they are traceable back to the accounting records themselves. Condition: During our audit procedures, we noted that although the Center maintains a cost allocation plan, there were no internal controls in place to ensure the plan was achieving the requirements referenced in the previous paragraph. The cost allocation plan was effectively existing and operating independently from the underlying accounting records. Cause: No individuals at the Center were periodically performing reconciling and other activities which would have served to ensure the cost allocation plan and underlying accounting records were in line and consistent. Effect: The Center incurs the risk of allocating disallowed costs to federal programs contrary to Federal Regulations. Questioned Costs: None noted. Recommendation: The Center should implement internal controls (periodic reconciliations, etc.) to ensure accuracy and consistency in allocations. Management’s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
Finding 2023-003
2023-003 REPORTING ALLOWABLE/ALLOCABLE COSTS Grantors: U.S Department of Housing and Urban Development Award Names: Emergency Solutions Grant /Community Development Block Grant /Continuum of Care Award Year: Various Award Numbers: Various Assistance Listing Numbers: 14.231 / 14.228 / 14.267 Criteria: Costs reported and submitted for reimbursement should be based on a cost allocation plan and agree to the underlying accounting records. Condition: During our audit testing, we noted cost allocations included on submitted grant reports did not reconcile directly back to what was allocated in the underlying accounting records (general ledger). Cause: No individuals at the Center were periodically performing reconciling and other activities which would have served to ensure the cost allocation plan and underlying accounting records were in line and consistent with what was being reported to grantors. Effect: The amount of allocated costs reported and reimbursed by grantors could not be readily traced back to the underlying accounting records (general ledger). Questioned Costs: None noted. Recommendation: The Center should implement controls to ensure all reporting and requests for reimbursements submitted to grantors reconcile with the underlying accounting records as allocated. Management’s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
Finding 2023-004
2023-004 INTERNAL CONTROLS OVER ALLOWABLE COSTS Grantor: Various Award Name: Various Award Year: Various Award Numbers: Various Assistance Listing Number: Various Criteria: Title 2, Chapter 2, part 200 of the Code of Federal Regulations (2 CFR Part 200) establishes cost principles for determining costs applicable to federal awards with nonprofit organizations. An important method of adhering to these cost principles and ensuring allowable and allocable costs are charged to federal programs is through the use of a cost allocation plan. As important as the plan is, internal controls over the cost allocation plan are just as necessary. Nonprofit organizations must maintain internal controls over the allocation of costs to ensure costs are not over or under allocated, consistency across programs, and that they are traceable back to the accounting records themselves. Condition: During our audit procedures, we noted that although the Center maintains a cost allocation plan, there were no internal controls in place to ensure the plan was achieving the requirements referenced in the previous paragraph. The cost allocation plan was effectively existing and operating independently from the underlying accounting records. Cause: No individuals at the Center were periodically performing reconciling and other activities which would have served to ensure the cost allocation plan and underlying accounting records were in line and consistent. Effect: The Center incurs the risk of allocating disallowed costs to federal programs contrary to Federal Regulations. Questioned Costs: None noted. Recommendation: The Center should implement internal controls (periodic reconciliations, etc.) to ensure accuracy and consistency in allocations. Management’s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.