FAC Explorer

Audit 306553

FY End
2023-06-30
Total Expended
$2.24M
Findings
20
Programs
7
Organization: Roof Above, Inc. (NC)
Year: 2023 Accepted: 2024-05-17
Auditor: Cherry Bekaert LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
397692 2023-002 Significant Deficiency - L
397693 2023-002 Significant Deficiency - L
397694 2023-002 Significant Deficiency - L
397695 2023-002 Significant Deficiency - L
397696 2023-002 Significant Deficiency - L
397697 2023-003 Material Weakness - I
397698 2023-003 Material Weakness - I
397699 2023-003 Material Weakness - I
397700 2023-003 Material Weakness - I
397701 2023-003 Material Weakness - I
974134 2023-002 Significant Deficiency - L
974135 2023-002 Significant Deficiency - L
974136 2023-002 Significant Deficiency - L
974137 2023-002 Significant Deficiency - L
974138 2023-002 Significant Deficiency - L
974139 2023-003 Material Weakness - I
974140 2023-003 Material Weakness - I
974141 2023-003 Material Weakness - I
974142 2023-003 Material Weakness - I
974143 2023-003 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $517,484 Yes 2
14.267 Continuum of Care Program $247,337 - 0
64.024 Va Homeless Providers Grant and Per Diem Program $164,825 - 0
97.024 Emergency Food and Shelter National Board Program $150,000 - 0
14.241 Housing Opportunities for Persons with Aids $111,537 - 0
14.239 Home Investment Partnerships Program $87,725 - 0
14.231 Emergency Solutions Grant Program $26,993 Yes 2

Contacts

Name Title Type
GJLTK25S5NG6 Tonya C. Frye Auditee
7043343187 Daniel Gougherty Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - General Accounting Policies: The accompanying Schedule is presented using the accrual basis of accounting, which is described in the notes to the Organization’s consolidated financial statements. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (“SEFA” or “Schedule”) includes the federal award activity of Roof Above, Inc. and Subsidiary (collectively, the “Organization”) under programs of the federal government for the year ended June 30, 2023. The information in this SEFA 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 SEFA presents only a selected portion of the operations of the Organization, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Organization.
Title: Note 3 - Subrecipients Accounting Policies: The accompanying Schedule is presented using the accrual basis of accounting, which is described in the notes to the Organization’s consolidated financial statements. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization did not pass-through any federal funds to subrecipient’s during the fiscal year ended June 30, 2023.

Finding Details

Finding 2023-002
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Significant Deficiency – Reporting Finding 2023-002 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For six (6) out of eight (8) reports tested, the Organization did not have formal documentation that the report was reviewed by a separate individual from the one that prepared it prior to submission. Effect: Without the documentation being retained, the Organization cannot demonstrate they have appropriate controls in place to ensure accuracy of the information reported. Cause: The Organization does not have a formal policy in place to document approval of reports prior to submission. Recommendation: We recommend the Organization implement a policy for formal documentation of review of required reports prior to submission. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-002
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Significant Deficiency – Reporting Finding 2023-002 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For six (6) out of eight (8) reports tested, the Organization did not have formal documentation that the report was reviewed by a separate individual from the one that prepared it prior to submission. Effect: Without the documentation being retained, the Organization cannot demonstrate they have appropriate controls in place to ensure accuracy of the information reported. Cause: The Organization does not have a formal policy in place to document approval of reports prior to submission. Recommendation: We recommend the Organization implement a policy for formal documentation of review of required reports prior to submission. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-002
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Significant Deficiency – Reporting Finding 2023-002 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For six (6) out of eight (8) reports tested, the Organization did not have formal documentation that the report was reviewed by a separate individual from the one that prepared it prior to submission. Effect: Without the documentation being retained, the Organization cannot demonstrate they have appropriate controls in place to ensure accuracy of the information reported. Cause: The Organization does not have a formal policy in place to document approval of reports prior to submission. Recommendation: We recommend the Organization implement a policy for formal documentation of review of required reports prior to submission. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-002
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Significant Deficiency – Reporting Finding 2023-002 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For six (6) out of eight (8) reports tested, the Organization did not have formal documentation that the report was reviewed by a separate individual from the one that prepared it prior to submission. Effect: Without the documentation being retained, the Organization cannot demonstrate they have appropriate controls in place to ensure accuracy of the information reported. Cause: The Organization does not have a formal policy in place to document approval of reports prior to submission. Recommendation: We recommend the Organization implement a policy for formal documentation of review of required reports prior to submission. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-002
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Significant Deficiency – Reporting Finding 2023-002 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For six (6) out of eight (8) reports tested, the Organization did not have formal documentation that the report was reviewed by a separate individual from the one that prepared it prior to submission. Effect: Without the documentation being retained, the Organization cannot demonstrate they have appropriate controls in place to ensure accuracy of the information reported. Cause: The Organization does not have a formal policy in place to document approval of reports prior to submission. Recommendation: We recommend the Organization implement a policy for formal documentation of review of required reports prior to submission. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-003
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Material Weakness; Nonmaterial Noncompliance – Procurement Finding 2023-003 Criteria: Per Sections 200.318 – 200.327 of the Uniform Grant Guidance, a non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations for the acquisition of property or services required under a Federal award or subaward. Furthermore, a contract award must not be made to suspended or debarred parties listed on the System for Award Management. Condition: There were two (2) instances out of four (4) contracts tested where the Organization did not properly follow the Uniform Grant Guidance procurement standards for contracted services. The Organization did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Effect: By not having a policy in line with Uniform Grant Guidance and not performing SAM.gov checks, the Organization could have improperly contracted with a vendor that was not considered eligible to be paid with grant proceeds. Cause: The Organization did not obtain quotes from more than one vendor for one contract tested, did not document sole source justification for one contract tested, and did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Recommendation: The Organization should consider implementing a procurement policy in line with Uniform Grant Guidance including a process to check SAM.gov to ensure a vendor is not suspended or debarred and follow the policy when contracting with new vendors using federal funding. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-003
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Material Weakness; Nonmaterial Noncompliance – Procurement Finding 2023-003 Criteria: Per Sections 200.318 – 200.327 of the Uniform Grant Guidance, a non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations for the acquisition of property or services required under a Federal award or subaward. Furthermore, a contract award must not be made to suspended or debarred parties listed on the System for Award Management. Condition: There were two (2) instances out of four (4) contracts tested where the Organization did not properly follow the Uniform Grant Guidance procurement standards for contracted services. The Organization did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Effect: By not having a policy in line with Uniform Grant Guidance and not performing SAM.gov checks, the Organization could have improperly contracted with a vendor that was not considered eligible to be paid with grant proceeds. Cause: The Organization did not obtain quotes from more than one vendor for one contract tested, did not document sole source justification for one contract tested, and did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Recommendation: The Organization should consider implementing a procurement policy in line with Uniform Grant Guidance including a process to check SAM.gov to ensure a vendor is not suspended or debarred and follow the policy when contracting with new vendors using federal funding. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-003
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Material Weakness; Nonmaterial Noncompliance – Procurement Finding 2023-003 Criteria: Per Sections 200.318 – 200.327 of the Uniform Grant Guidance, a non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations for the acquisition of property or services required under a Federal award or subaward. Furthermore, a contract award must not be made to suspended or debarred parties listed on the System for Award Management. Condition: There were two (2) instances out of four (4) contracts tested where the Organization did not properly follow the Uniform Grant Guidance procurement standards for contracted services. The Organization did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Effect: By not having a policy in line with Uniform Grant Guidance and not performing SAM.gov checks, the Organization could have improperly contracted with a vendor that was not considered eligible to be paid with grant proceeds. Cause: The Organization did not obtain quotes from more than one vendor for one contract tested, did not document sole source justification for one contract tested, and did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Recommendation: The Organization should consider implementing a procurement policy in line with Uniform Grant Guidance including a process to check SAM.gov to ensure a vendor is not suspended or debarred and follow the policy when contracting with new vendors using federal funding. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-003
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Material Weakness; Nonmaterial Noncompliance – Procurement Finding 2023-003 Criteria: Per Sections 200.318 – 200.327 of the Uniform Grant Guidance, a non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations for the acquisition of property or services required under a Federal award or subaward. Furthermore, a contract award must not be made to suspended or debarred parties listed on the System for Award Management. Condition: There were two (2) instances out of four (4) contracts tested where the Organization did not properly follow the Uniform Grant Guidance procurement standards for contracted services. The Organization did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Effect: By not having a policy in line with Uniform Grant Guidance and not performing SAM.gov checks, the Organization could have improperly contracted with a vendor that was not considered eligible to be paid with grant proceeds. Cause: The Organization did not obtain quotes from more than one vendor for one contract tested, did not document sole source justification for one contract tested, and did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Recommendation: The Organization should consider implementing a procurement policy in line with Uniform Grant Guidance including a process to check SAM.gov to ensure a vendor is not suspended or debarred and follow the policy when contracting with new vendors using federal funding. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-003
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Material Weakness; Nonmaterial Noncompliance – Procurement Finding 2023-003 Criteria: Per Sections 200.318 – 200.327 of the Uniform Grant Guidance, a non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations for the acquisition of property or services required under a Federal award or subaward. Furthermore, a contract award must not be made to suspended or debarred parties listed on the System for Award Management. Condition: There were two (2) instances out of four (4) contracts tested where the Organization did not properly follow the Uniform Grant Guidance procurement standards for contracted services. The Organization did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Effect: By not having a policy in line with Uniform Grant Guidance and not performing SAM.gov checks, the Organization could have improperly contracted with a vendor that was not considered eligible to be paid with grant proceeds. Cause: The Organization did not obtain quotes from more than one vendor for one contract tested, did not document sole source justification for one contract tested, and did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Recommendation: The Organization should consider implementing a procurement policy in line with Uniform Grant Guidance including a process to check SAM.gov to ensure a vendor is not suspended or debarred and follow the policy when contracting with new vendors using federal funding. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-002
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Significant Deficiency – Reporting Finding 2023-002 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For six (6) out of eight (8) reports tested, the Organization did not have formal documentation that the report was reviewed by a separate individual from the one that prepared it prior to submission. Effect: Without the documentation being retained, the Organization cannot demonstrate they have appropriate controls in place to ensure accuracy of the information reported. Cause: The Organization does not have a formal policy in place to document approval of reports prior to submission. Recommendation: We recommend the Organization implement a policy for formal documentation of review of required reports prior to submission. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-002
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Significant Deficiency – Reporting Finding 2023-002 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For six (6) out of eight (8) reports tested, the Organization did not have formal documentation that the report was reviewed by a separate individual from the one that prepared it prior to submission. Effect: Without the documentation being retained, the Organization cannot demonstrate they have appropriate controls in place to ensure accuracy of the information reported. Cause: The Organization does not have a formal policy in place to document approval of reports prior to submission. Recommendation: We recommend the Organization implement a policy for formal documentation of review of required reports prior to submission. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-002
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Significant Deficiency – Reporting Finding 2023-002 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For six (6) out of eight (8) reports tested, the Organization did not have formal documentation that the report was reviewed by a separate individual from the one that prepared it prior to submission. Effect: Without the documentation being retained, the Organization cannot demonstrate they have appropriate controls in place to ensure accuracy of the information reported. Cause: The Organization does not have a formal policy in place to document approval of reports prior to submission. Recommendation: We recommend the Organization implement a policy for formal documentation of review of required reports prior to submission. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-002
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Significant Deficiency – Reporting Finding 2023-002 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For six (6) out of eight (8) reports tested, the Organization did not have formal documentation that the report was reviewed by a separate individual from the one that prepared it prior to submission. Effect: Without the documentation being retained, the Organization cannot demonstrate they have appropriate controls in place to ensure accuracy of the information reported. Cause: The Organization does not have a formal policy in place to document approval of reports prior to submission. Recommendation: We recommend the Organization implement a policy for formal documentation of review of required reports prior to submission. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-002
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Significant Deficiency – Reporting Finding 2023-002 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For six (6) out of eight (8) reports tested, the Organization did not have formal documentation that the report was reviewed by a separate individual from the one that prepared it prior to submission. Effect: Without the documentation being retained, the Organization cannot demonstrate they have appropriate controls in place to ensure accuracy of the information reported. Cause: The Organization does not have a formal policy in place to document approval of reports prior to submission. Recommendation: We recommend the Organization implement a policy for formal documentation of review of required reports prior to submission. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-003
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Material Weakness; Nonmaterial Noncompliance – Procurement Finding 2023-003 Criteria: Per Sections 200.318 – 200.327 of the Uniform Grant Guidance, a non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations for the acquisition of property or services required under a Federal award or subaward. Furthermore, a contract award must not be made to suspended or debarred parties listed on the System for Award Management. Condition: There were two (2) instances out of four (4) contracts tested where the Organization did not properly follow the Uniform Grant Guidance procurement standards for contracted services. The Organization did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Effect: By not having a policy in line with Uniform Grant Guidance and not performing SAM.gov checks, the Organization could have improperly contracted with a vendor that was not considered eligible to be paid with grant proceeds. Cause: The Organization did not obtain quotes from more than one vendor for one contract tested, did not document sole source justification for one contract tested, and did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Recommendation: The Organization should consider implementing a procurement policy in line with Uniform Grant Guidance including a process to check SAM.gov to ensure a vendor is not suspended or debarred and follow the policy when contracting with new vendors using federal funding. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-003
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Material Weakness; Nonmaterial Noncompliance – Procurement Finding 2023-003 Criteria: Per Sections 200.318 – 200.327 of the Uniform Grant Guidance, a non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations for the acquisition of property or services required under a Federal award or subaward. Furthermore, a contract award must not be made to suspended or debarred parties listed on the System for Award Management. Condition: There were two (2) instances out of four (4) contracts tested where the Organization did not properly follow the Uniform Grant Guidance procurement standards for contracted services. The Organization did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Effect: By not having a policy in line with Uniform Grant Guidance and not performing SAM.gov checks, the Organization could have improperly contracted with a vendor that was not considered eligible to be paid with grant proceeds. Cause: The Organization did not obtain quotes from more than one vendor for one contract tested, did not document sole source justification for one contract tested, and did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Recommendation: The Organization should consider implementing a procurement policy in line with Uniform Grant Guidance including a process to check SAM.gov to ensure a vendor is not suspended or debarred and follow the policy when contracting with new vendors using federal funding. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-003
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Material Weakness; Nonmaterial Noncompliance – Procurement Finding 2023-003 Criteria: Per Sections 200.318 – 200.327 of the Uniform Grant Guidance, a non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations for the acquisition of property or services required under a Federal award or subaward. Furthermore, a contract award must not be made to suspended or debarred parties listed on the System for Award Management. Condition: There were two (2) instances out of four (4) contracts tested where the Organization did not properly follow the Uniform Grant Guidance procurement standards for contracted services. The Organization did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Effect: By not having a policy in line with Uniform Grant Guidance and not performing SAM.gov checks, the Organization could have improperly contracted with a vendor that was not considered eligible to be paid with grant proceeds. Cause: The Organization did not obtain quotes from more than one vendor for one contract tested, did not document sole source justification for one contract tested, and did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Recommendation: The Organization should consider implementing a procurement policy in line with Uniform Grant Guidance including a process to check SAM.gov to ensure a vendor is not suspended or debarred and follow the policy when contracting with new vendors using federal funding. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-003
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Material Weakness; Nonmaterial Noncompliance – Procurement Finding 2023-003 Criteria: Per Sections 200.318 – 200.327 of the Uniform Grant Guidance, a non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations for the acquisition of property or services required under a Federal award or subaward. Furthermore, a contract award must not be made to suspended or debarred parties listed on the System for Award Management. Condition: There were two (2) instances out of four (4) contracts tested where the Organization did not properly follow the Uniform Grant Guidance procurement standards for contracted services. The Organization did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Effect: By not having a policy in line with Uniform Grant Guidance and not performing SAM.gov checks, the Organization could have improperly contracted with a vendor that was not considered eligible to be paid with grant proceeds. Cause: The Organization did not obtain quotes from more than one vendor for one contract tested, did not document sole source justification for one contract tested, and did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Recommendation: The Organization should consider implementing a procurement policy in line with Uniform Grant Guidance including a process to check SAM.gov to ensure a vendor is not suspended or debarred and follow the policy when contracting with new vendors using federal funding. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.
Finding 2023-003
U.S. Department of Housing and Urban Development Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina Program Name: Emergency Solutions Grant Federal Assistance Listing Number: 14.231 U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Material Weakness; Nonmaterial Noncompliance – Procurement Finding 2023-003 Criteria: Per Sections 200.318 – 200.327 of the Uniform Grant Guidance, a non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations for the acquisition of property or services required under a Federal award or subaward. Furthermore, a contract award must not be made to suspended or debarred parties listed on the System for Award Management. Condition: There were two (2) instances out of four (4) contracts tested where the Organization did not properly follow the Uniform Grant Guidance procurement standards for contracted services. The Organization did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Effect: By not having a policy in line with Uniform Grant Guidance and not performing SAM.gov checks, the Organization could have improperly contracted with a vendor that was not considered eligible to be paid with grant proceeds. Cause: The Organization did not obtain quotes from more than one vendor for one contract tested, did not document sole source justification for one contract tested, and did not check SAM.gov for vendors contracted with that had expenditures over $25,000. Recommendation: The Organization should consider implementing a procurement policy in line with Uniform Grant Guidance including a process to check SAM.gov to ensure a vendor is not suspended or debarred and follow the policy when contracting with new vendors using federal funding. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.