FAC Explorer

Audit 305767

FY End
2023-09-30
Total Expended
$5.75M
Findings
2
Programs
6
Organization: Montana Homeownership Network, Inc. Dba Neighborworks Montana (MT)
Year: 2023 Accepted: 2024-05-08
Auditor: Kcoe Isom LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396154 2023-001 Material Weakness - L
972596 2023-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $1.14M - 0
14.218 Community Development Block Grants/entitlement Grants $1.02M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $829,484 - 0
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $811,265 - 0
99.000 Neighborhood Reinvestment Corporation Public Law 115-141 U.s. Department of Treasury - Neighborworks America $706,180 Yes 0
14.169 Housing Counseling Assistance Program $285,896 Yes 1

Contacts

Name Title Type
RN75GYBTF4J7 Damona Williams Auditee
4066044542 Megan Connors Auditor
No contacts on file

Notes to SEFA

Title: 4. UNKNOWN ASSISTANCE LISTING NUMBER Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Montana HomeOwnership Network, Inc. dba NeighborWorks Montana (NWMT) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 US 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 basic financial statements. Expenditures reported on the schedule of expenditures of federal awards 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: N Rate Explanation: NWMT has elected not to use the 10.0% de minimis indirect cost rate from Uniform Guidance. The Neighborhood Reinvestment Corporation, doing business as NeighborWorks America, is a congressionally chartered nonprofit organization that received direct federal appropriations. They have not been issued an Assistance Listing (AL) number for federal appropriations. Public Law number 115.141 was issued for the appropriations awarded for the year ended September 30, 2023.

Finding Details

Finding 2023-001
Grant Program: Department of Housing and Urban Development HUD Counseling Program – Assistance Listing # 14.169 Condition: As a result of our audit procedures, we noted the following exceptions with reporting submissions for the Federal Funding Accountability and Transparency Act (FFATA) reporting for fiscal year ended September 30, 2023: Criteria: The Code of Federal Regulations (2 CFR 170, Appendix A((I)(a)(2)(ii)) states a subaward must be reported in FSRS by the last day of the month following the obligation date, which is defined as the date the subaward is signed. The Code of Federal Regulations (2 CFR 170, Appendix A(I)(b)(1)(i)) sets forth the reporting requirements of the Transparency Act that related to subawards under grants. Direct recipients of grants who make first-tier subawards equal to or exceeding $30,000 are required to report each subaward obligating action equal to $30,000 or more in Federal funds. Effect: Failure to report subawards greater than $30,000 under FFATA is considered noncompliance. Continued noncompliance could result in a loss of funding. Context: Pass through payment to subrecipients subject to FFATA reporting was $201,484. Cause: NWMT was not aware of the reporting requirements. Recommendation: We recommend that NWMT update its current practices for managing subaward reporting under FFATA to ensure applicable subawards are properly identified and the required submissions are made timely. Management Response: See Corrective Action Plan.
Finding 2023-001
Grant Program: Department of Housing and Urban Development HUD Counseling Program – Assistance Listing # 14.169 Condition: As a result of our audit procedures, we noted the following exceptions with reporting submissions for the Federal Funding Accountability and Transparency Act (FFATA) reporting for fiscal year ended September 30, 2023: Criteria: The Code of Federal Regulations (2 CFR 170, Appendix A((I)(a)(2)(ii)) states a subaward must be reported in FSRS by the last day of the month following the obligation date, which is defined as the date the subaward is signed. The Code of Federal Regulations (2 CFR 170, Appendix A(I)(b)(1)(i)) sets forth the reporting requirements of the Transparency Act that related to subawards under grants. Direct recipients of grants who make first-tier subawards equal to or exceeding $30,000 are required to report each subaward obligating action equal to $30,000 or more in Federal funds. Effect: Failure to report subawards greater than $30,000 under FFATA is considered noncompliance. Continued noncompliance could result in a loss of funding. Context: Pass through payment to subrecipients subject to FFATA reporting was $201,484. Cause: NWMT was not aware of the reporting requirements. Recommendation: We recommend that NWMT update its current practices for managing subaward reporting under FFATA to ensure applicable subawards are properly identified and the required submissions are made timely. Management Response: See Corrective Action Plan.