FAC Explorer

Audit 315097

FY End
2022-12-31
Total Expended
$6.97M
Findings
2
Programs
6
Organization: Neighborhood Legal Services Michigan (MI)
Year: 2022 Accepted: 2024-07-15
Auditor: Alan C Young & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
478407 2022-003 Material Weakness Yes H
1054849 2022-003 Material Weakness Yes H

Programs

ALN Program Spent Major Findings
14.231 Emergency Solutions Grant Program $485,309 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $169,299 - 0
16.575 Crime Victim Assistance $131,774 - 0
93.914 Hiv Emergency Relief Project Grants $58,992 - 0
14.267 Continuum of Care Program $38,106 Yes 0
14.218 Community Development Block Grants/entitlement Grants $20,405 - 0

Contacts

Name Title Type
MH1JGMPPM111 Thaddeus K. Dean, Jr. Auditee
3137824200 Jay Wilde II Auditor
No contacts on file

Notes to SEFA

Title: SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Organization and is presented on the same basis of accounting as the financial statements. The information in this schedule is presented in accordance with the requirement of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). In addition, expenditures reported on the schedule are recognized following the federal cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, change in net position or cash flows of the Organization. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Organization and is presented on the same basis of accounting as the financial statements. The information in this schedule is presented in accordance with the requirement of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). In addition, expenditures reported on the schedule are recognized following the federal cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, change in net position or cash flows of the Organization.
Title: MAJOR PROGRAMS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Organization and is presented on the same basis of accounting as the financial statements. The information in this schedule is presented in accordance with the requirement of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). In addition, expenditures reported on the schedule are recognized following the federal cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, change in net position or cash flows of the Organization. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Major programs have been determined 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).
Title: INDIRECT COST RATE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Organization and is presented on the same basis of accounting as the financial statements. The information in this schedule is presented in accordance with the requirement of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). In addition, expenditures reported on the schedule are recognized following the federal cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, change in net position or cash flows of the Organization. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: SUBSEQUENT EVENTS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Organization and is presented on the same basis of accounting as the financial statements. The information in this schedule is presented in accordance with the requirement of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). In addition, expenditures reported on the schedule are recognized following the federal cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, change in net position or cash flows of the Organization. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. All subsequent events were evaluated through June 20, 2024, the date the accompanying reports were available to be issued. In January 2024 HUD identified certain draws made outside of period of performance and requested $37,062 to be returned to the federal government. The schedule of expenditures of federal awards has been adjusted for the amount of these draws.

Finding Details

Finding 2022-003
Program Name – Continuum of Care Assistance Listing Number – 14.267 Pass-through Entity – N/A Finding Type – Material Weakness and Noncompliance Criteria – A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity. Condition and Description – For 3 grants the Organization drew funds prior to the period of performance. Questioned Costs – $37,062. Identification of a Repeat Finding – This is a repeat finding and was identified as Finding 2021-005 in the prior year single audit. Cause/Effect The Organization drew funds prior to the operating start date of the grant. The draws were outside of the period of performance and are to be returned to the US Department of Housing and Urban Development. Recommendation – The Organization should ensure that grant funds are not drawn until after the operating start date of the grant. View of Responsible Official and Corrective Action Plan – We agree with the auditors' comments, and the following action will be taken to improve the situation. Following the completion of the 2021 Single Audit, we adjusted the Organization’s Accounting Policies & Procedure Manual to include detailed information outlined in HUD's electronic Line of Credit Control System (eLOCCS) inclusive of the roles and responsibilities of the system's Users and Approving Official. Specifically, Accounting Department Leadership (i.e., the Chief Financial Officer), designated accounting personnel (i.e., Accountants), and/or agency Executive Leadership (i.e., CEO/Executive Director), must be cognizant of a grant's period of performance.
Finding 2022-003
Program Name – Continuum of Care Assistance Listing Number – 14.267 Pass-through Entity – N/A Finding Type – Material Weakness and Noncompliance Criteria – A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity. Condition and Description – For 3 grants the Organization drew funds prior to the period of performance. Questioned Costs – $37,062. Identification of a Repeat Finding – This is a repeat finding and was identified as Finding 2021-005 in the prior year single audit. Cause/Effect The Organization drew funds prior to the operating start date of the grant. The draws were outside of the period of performance and are to be returned to the US Department of Housing and Urban Development. Recommendation – The Organization should ensure that grant funds are not drawn until after the operating start date of the grant. View of Responsible Official and Corrective Action Plan – We agree with the auditors' comments, and the following action will be taken to improve the situation. Following the completion of the 2021 Single Audit, we adjusted the Organization’s Accounting Policies & Procedure Manual to include detailed information outlined in HUD's electronic Line of Credit Control System (eLOCCS) inclusive of the roles and responsibilities of the system's Users and Approving Official. Specifically, Accounting Department Leadership (i.e., the Chief Financial Officer), designated accounting personnel (i.e., Accountants), and/or agency Executive Leadership (i.e., CEO/Executive Director), must be cognizant of a grant's period of performance.