Audit 332768

FY End
2023-06-30
Total Expended
$7.07M
Findings
24
Programs
4
Year: 2023 Accepted: 2024-12-16

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
514432 2023-001 Material Weakness - P
514433 2023-001 Material Weakness - P
514434 2023-001 Material Weakness - P
514435 2023-001 Material Weakness - P
514436 2023-001 Material Weakness - P
514437 2023-002 Material Weakness - P
514438 2023-002 Material Weakness - P
514439 2023-003 Material Weakness - P
514440 2023-003 Material Weakness - P
514441 2023-003 Material Weakness - P
514442 2023-003 Material Weakness - P
514443 2023-003 Material Weakness - P
1090874 2023-001 Material Weakness - P
1090875 2023-001 Material Weakness - P
1090876 2023-001 Material Weakness - P
1090877 2023-001 Material Weakness - P
1090878 2023-001 Material Weakness - P
1090879 2023-002 Material Weakness - P
1090880 2023-002 Material Weakness - P
1090881 2023-003 Material Weakness - P
1090882 2023-003 Material Weakness - P
1090883 2023-003 Material Weakness - P
1090884 2023-003 Material Weakness - P
1090885 2023-003 Material Weakness - P

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $4.00M Yes 3
93.569 Community Services Block Grant $955,624 Yes 2
14.879 Mainstream Vouchers $262,618 Yes 3
14.896 Family Self-Sufficiency Program $65,331 - 0

Contacts

Name Title Type
G8NHQJP83Q76 Trudy Murray Auditee
9103472151 Jamie Parsons Auditor
No contacts on file

Notes to SEFA

Title: 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 to reimbursements. Eastern Carolina Human Services Agency, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Eastern Carolina Human Services Agency, Inc. 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 (the "Schedule") includes the federal grant activity of Eastern Carolina Human Services Agency, Inc. under the 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 (CFR) 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 Eastern Carolina Human Services Agency, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Eastern Carolina Human Services Agency, Inc.

Finding Details

Finding 2023-001 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: Internal control processes over financial accounting did not ensure that all transactions were properly recorded. Internal control processes over financial accounting did not ensure that key accounts were reconciled or reviewed on a periodic basis. Criteria: 2 CFR Part 200 Section 200.302 Financial Management states that the financial management system of each non-federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award in accordance with the reporting requirements. Additionally, 2 CFR Part 200 Section 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD and Uniform Guidance requirements and the possibility of undetected material misstatements and/or undetected misappropriation of assets. Context: An understanding of processes and internal controls was performed with the Organization's management and tests were performed to determine if the processes and internal controls were implemented and effective. As part of this process we noted the following processes and internal controls were not effective and/or implemented. 1) Bank accounts were not reconciled during the year ending June 30, 2023. 2) Significant accounts were not reconciled. 3) Financial statements and/or reconciled financial information was not reviewed by management or the board of directors. While applying audit procedures, significant adjustments were identified as necessary to properly reflect the financial data in accordance with generally accepted accounting principles. Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Furthermore, we recommend that the Organization consider additional financial and accounting training. Questioned Costs: N/A Reporting Views of Responsible Officials: Management agrees with the finding and will review the accounting and financial procedures, system of internal controls and policies.
Finding 2023-001 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: Internal control processes over financial accounting did not ensure that all transactions were properly recorded. Internal control processes over financial accounting did not ensure that key accounts were reconciled or reviewed on a periodic basis. Criteria: 2 CFR Part 200 Section 200.302 Financial Management states that the financial management system of each non-federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award in accordance with the reporting requirements. Additionally, 2 CFR Part 200 Section 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD and Uniform Guidance requirements and the possibility of undetected material misstatements and/or undetected misappropriation of assets. Context: An understanding of processes and internal controls was performed with the Organization's management and tests were performed to determine if the processes and internal controls were implemented and effective. As part of this process we noted the following processes and internal controls were not effective and/or implemented. 1) Bank accounts were not reconciled during the year ending June 30, 2023. 2) Significant accounts were not reconciled. 3) Financial statements and/or reconciled financial information was not reviewed by management or the board of directors. While applying audit procedures, significant adjustments were identified as necessary to properly reflect the financial data in accordance with generally accepted accounting principles. Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Furthermore, we recommend that the Organization consider additional financial and accounting training. Questioned Costs: N/A Reporting Views of Responsible Officials: Management agrees with the finding and will review the accounting and financial procedures, system of internal controls and policies.
Finding 2023-001 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: Internal control processes over financial accounting did not ensure that all transactions were properly recorded. Internal control processes over financial accounting did not ensure that key accounts were reconciled or reviewed on a periodic basis. Criteria: 2 CFR Part 200 Section 200.302 Financial Management states that the financial management system of each non-federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award in accordance with the reporting requirements. Additionally, 2 CFR Part 200 Section 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD and Uniform Guidance requirements and the possibility of undetected material misstatements and/or undetected misappropriation of assets. Context: An understanding of processes and internal controls was performed with the Organization's management and tests were performed to determine if the processes and internal controls were implemented and effective. As part of this process we noted the following processes and internal controls were not effective and/or implemented. 1) Bank accounts were not reconciled during the year ending June 30, 2023. 2) Significant accounts were not reconciled. 3) Financial statements and/or reconciled financial information was not reviewed by management or the board of directors. While applying audit procedures, significant adjustments were identified as necessary to properly reflect the financial data in accordance with generally accepted accounting principles. Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Furthermore, we recommend that the Organization consider additional financial and accounting training. Questioned Costs: N/A Reporting Views of Responsible Officials: Management agrees with the finding and will review the accounting and financial procedures, system of internal controls and policies.
Finding 2023-001 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: Internal control processes over financial accounting did not ensure that all transactions were properly recorded. Internal control processes over financial accounting did not ensure that key accounts were reconciled or reviewed on a periodic basis. Criteria: 2 CFR Part 200 Section 200.302 Financial Management states that the financial management system of each non-federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award in accordance with the reporting requirements. Additionally, 2 CFR Part 200 Section 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD and Uniform Guidance requirements and the possibility of undetected material misstatements and/or undetected misappropriation of assets. Context: An understanding of processes and internal controls was performed with the Organization's management and tests were performed to determine if the processes and internal controls were implemented and effective. As part of this process we noted the following processes and internal controls were not effective and/or implemented. 1) Bank accounts were not reconciled during the year ending June 30, 2023. 2) Significant accounts were not reconciled. 3) Financial statements and/or reconciled financial information was not reviewed by management or the board of directors. While applying audit procedures, significant adjustments were identified as necessary to properly reflect the financial data in accordance with generally accepted accounting principles. Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Furthermore, we recommend that the Organization consider additional financial and accounting training. Questioned Costs: N/A Reporting Views of Responsible Officials: Management agrees with the finding and will review the accounting and financial procedures, system of internal controls and policies.
Finding 2023-001 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: Internal control processes over financial accounting did not ensure that all transactions were properly recorded. Internal control processes over financial accounting did not ensure that key accounts were reconciled or reviewed on a periodic basis. Criteria: 2 CFR Part 200 Section 200.302 Financial Management states that the financial management system of each non-federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award in accordance with the reporting requirements. Additionally, 2 CFR Part 200 Section 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD and Uniform Guidance requirements and the possibility of undetected material misstatements and/or undetected misappropriation of assets. Context: An understanding of processes and internal controls was performed with the Organization's management and tests were performed to determine if the processes and internal controls were implemented and effective. As part of this process we noted the following processes and internal controls were not effective and/or implemented. 1) Bank accounts were not reconciled during the year ending June 30, 2023. 2) Significant accounts were not reconciled. 3) Financial statements and/or reconciled financial information was not reviewed by management or the board of directors. While applying audit procedures, significant adjustments were identified as necessary to properly reflect the financial data in accordance with generally accepted accounting principles. Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Furthermore, we recommend that the Organization consider additional financial and accounting training. Questioned Costs: N/A Reporting Views of Responsible Officials: Management agrees with the finding and will review the accounting and financial procedures, system of internal controls and policies.
Finding 2023-002 - U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: For the year ended June 30, 2022, the Organization did not submit their audited financial statements to HUD by the required deadline. For the year ended June 30, 2023, the Organization did not submit their unaudited or audited financial statements to HUD by the required deadline. Criteria: The Uniform Financial Reporting Standards (24 CFR Section 5.801) require the Organization to submit timely GAAP-based unaudited and audited financial information electronically to HUD via the Financial Assessment Sub-System (FASS-PH). Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD requirements. Context: A test was performed to review the prior year submission of the audited financial statement submission to HUD for the year ended June 30, 2022 noting the audited financial statements had not been submitted to HUD. A test was performed to review the unaudited financial statement submission to HUD for the year ended June 30, 2023 noting the unaudited financial statement submission to HUD had not been submitted to HUD. Questioned Costs: N/A Recommendation: We recommend the Organization submit their financial report as soon as possible. Furthermore, we recommend that the Organization consider additional training related to HUD reporting requirements. Reporting Views of Responsible Officials and Corrective Action Plan: Management agrees with the above finding and will submit their financial information for the year ended June 30, 2022 and 2023. Management will re-evaluate its policies and procedures to determine any necessary changes.
Finding 2023-002 - U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: For the year ended June 30, 2022, the Organization did not submit their audited financial statements to HUD by the required deadline. For the year ended June 30, 2023, the Organization did not submit their unaudited or audited financial statements to HUD by the required deadline. Criteria: The Uniform Financial Reporting Standards (24 CFR Section 5.801) require the Organization to submit timely GAAP-based unaudited and audited financial information electronically to HUD via the Financial Assessment Sub-System (FASS-PH). Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD requirements. Context: A test was performed to review the prior year submission of the audited financial statement submission to HUD for the year ended June 30, 2022 noting the audited financial statements had not been submitted to HUD. A test was performed to review the unaudited financial statement submission to HUD for the year ended June 30, 2023 noting the unaudited financial statement submission to HUD had not been submitted to HUD. Questioned Costs: N/A Recommendation: We recommend the Organization submit their financial report as soon as possible. Furthermore, we recommend that the Organization consider additional training related to HUD reporting requirements. Reporting Views of Responsible Officials and Corrective Action Plan: Management agrees with the above finding and will submit their financial information for the year ended June 30, 2022 and 2023. Management will re-evaluate its policies and procedures to determine any necessary changes.
Finding 2023-003 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: The Organization did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2023 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with Uniform Guidance regulations. Context: The books and records were not reconciled and ready to be audited by the required due date of the reporting package to the FAC. Questioned Costs: N/A Recommendation: We recommend the management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Furthermore, we recommend that the Organization consider additional financial and accounting training. Reporting Views of Responsible Officials and Corrective Action Plan: The Board of Directors and management acknowledge that the data collection form for the year ended June 30, 2023 is past the required due date. Management will ensure the data collection forms are submitted electronically to the FAC each fiscal year within nine months of each fiscal year end.
Finding 2023-003 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: The Organization did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2023 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with Uniform Guidance regulations. Context: The books and records were not reconciled and ready to be audited by the required due date of the reporting package to the FAC. Questioned Costs: N/A Recommendation: We recommend the management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Furthermore, we recommend that the Organization consider additional financial and accounting training. Reporting Views of Responsible Officials and Corrective Action Plan: The Board of Directors and management acknowledge that the data collection form for the year ended June 30, 2023 is past the required due date. Management will ensure the data collection forms are submitted electronically to the FAC each fiscal year within nine months of each fiscal year end.
Finding 2023-003 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: The Organization did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2023 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with Uniform Guidance regulations. Context: The books and records were not reconciled and ready to be audited by the required due date of the reporting package to the FAC. Questioned Costs: N/A Recommendation: We recommend the management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Furthermore, we recommend that the Organization consider additional financial and accounting training. Reporting Views of Responsible Officials and Corrective Action Plan: The Board of Directors and management acknowledge that the data collection form for the year ended June 30, 2023 is past the required due date. Management will ensure the data collection forms are submitted electronically to the FAC each fiscal year within nine months of each fiscal year end.
Finding 2023-003 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: The Organization did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2023 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with Uniform Guidance regulations. Context: The books and records were not reconciled and ready to be audited by the required due date of the reporting package to the FAC. Questioned Costs: N/A Recommendation: We recommend the management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Furthermore, we recommend that the Organization consider additional financial and accounting training. Reporting Views of Responsible Officials and Corrective Action Plan: The Board of Directors and management acknowledge that the data collection form for the year ended June 30, 2023 is past the required due date. Management will ensure the data collection forms are submitted electronically to the FAC each fiscal year within nine months of each fiscal year end.
Finding 2023-003 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: The Organization did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2023 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with Uniform Guidance regulations. Context: The books and records were not reconciled and ready to be audited by the required due date of the reporting package to the FAC. Questioned Costs: N/A Recommendation: We recommend the management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Furthermore, we recommend that the Organization consider additional financial and accounting training. Reporting Views of Responsible Officials and Corrective Action Plan: The Board of Directors and management acknowledge that the data collection form for the year ended June 30, 2023 is past the required due date. Management will ensure the data collection forms are submitted electronically to the FAC each fiscal year within nine months of each fiscal year end.
Finding 2023-001 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: Internal control processes over financial accounting did not ensure that all transactions were properly recorded. Internal control processes over financial accounting did not ensure that key accounts were reconciled or reviewed on a periodic basis. Criteria: 2 CFR Part 200 Section 200.302 Financial Management states that the financial management system of each non-federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award in accordance with the reporting requirements. Additionally, 2 CFR Part 200 Section 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD and Uniform Guidance requirements and the possibility of undetected material misstatements and/or undetected misappropriation of assets. Context: An understanding of processes and internal controls was performed with the Organization's management and tests were performed to determine if the processes and internal controls were implemented and effective. As part of this process we noted the following processes and internal controls were not effective and/or implemented. 1) Bank accounts were not reconciled during the year ending June 30, 2023. 2) Significant accounts were not reconciled. 3) Financial statements and/or reconciled financial information was not reviewed by management or the board of directors. While applying audit procedures, significant adjustments were identified as necessary to properly reflect the financial data in accordance with generally accepted accounting principles. Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Furthermore, we recommend that the Organization consider additional financial and accounting training. Questioned Costs: N/A Reporting Views of Responsible Officials: Management agrees with the finding and will review the accounting and financial procedures, system of internal controls and policies.
Finding 2023-001 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: Internal control processes over financial accounting did not ensure that all transactions were properly recorded. Internal control processes over financial accounting did not ensure that key accounts were reconciled or reviewed on a periodic basis. Criteria: 2 CFR Part 200 Section 200.302 Financial Management states that the financial management system of each non-federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award in accordance with the reporting requirements. Additionally, 2 CFR Part 200 Section 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD and Uniform Guidance requirements and the possibility of undetected material misstatements and/or undetected misappropriation of assets. Context: An understanding of processes and internal controls was performed with the Organization's management and tests were performed to determine if the processes and internal controls were implemented and effective. As part of this process we noted the following processes and internal controls were not effective and/or implemented. 1) Bank accounts were not reconciled during the year ending June 30, 2023. 2) Significant accounts were not reconciled. 3) Financial statements and/or reconciled financial information was not reviewed by management or the board of directors. While applying audit procedures, significant adjustments were identified as necessary to properly reflect the financial data in accordance with generally accepted accounting principles. Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Furthermore, we recommend that the Organization consider additional financial and accounting training. Questioned Costs: N/A Reporting Views of Responsible Officials: Management agrees with the finding and will review the accounting and financial procedures, system of internal controls and policies.
Finding 2023-001 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: Internal control processes over financial accounting did not ensure that all transactions were properly recorded. Internal control processes over financial accounting did not ensure that key accounts were reconciled or reviewed on a periodic basis. Criteria: 2 CFR Part 200 Section 200.302 Financial Management states that the financial management system of each non-federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award in accordance with the reporting requirements. Additionally, 2 CFR Part 200 Section 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD and Uniform Guidance requirements and the possibility of undetected material misstatements and/or undetected misappropriation of assets. Context: An understanding of processes and internal controls was performed with the Organization's management and tests were performed to determine if the processes and internal controls were implemented and effective. As part of this process we noted the following processes and internal controls were not effective and/or implemented. 1) Bank accounts were not reconciled during the year ending June 30, 2023. 2) Significant accounts were not reconciled. 3) Financial statements and/or reconciled financial information was not reviewed by management or the board of directors. While applying audit procedures, significant adjustments were identified as necessary to properly reflect the financial data in accordance with generally accepted accounting principles. Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Furthermore, we recommend that the Organization consider additional financial and accounting training. Questioned Costs: N/A Reporting Views of Responsible Officials: Management agrees with the finding and will review the accounting and financial procedures, system of internal controls and policies.
Finding 2023-001 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: Internal control processes over financial accounting did not ensure that all transactions were properly recorded. Internal control processes over financial accounting did not ensure that key accounts were reconciled or reviewed on a periodic basis. Criteria: 2 CFR Part 200 Section 200.302 Financial Management states that the financial management system of each non-federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award in accordance with the reporting requirements. Additionally, 2 CFR Part 200 Section 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD and Uniform Guidance requirements and the possibility of undetected material misstatements and/or undetected misappropriation of assets. Context: An understanding of processes and internal controls was performed with the Organization's management and tests were performed to determine if the processes and internal controls were implemented and effective. As part of this process we noted the following processes and internal controls were not effective and/or implemented. 1) Bank accounts were not reconciled during the year ending June 30, 2023. 2) Significant accounts were not reconciled. 3) Financial statements and/or reconciled financial information was not reviewed by management or the board of directors. While applying audit procedures, significant adjustments were identified as necessary to properly reflect the financial data in accordance with generally accepted accounting principles. Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Furthermore, we recommend that the Organization consider additional financial and accounting training. Questioned Costs: N/A Reporting Views of Responsible Officials: Management agrees with the finding and will review the accounting and financial procedures, system of internal controls and policies.
Finding 2023-001 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: Internal control processes over financial accounting did not ensure that all transactions were properly recorded. Internal control processes over financial accounting did not ensure that key accounts were reconciled or reviewed on a periodic basis. Criteria: 2 CFR Part 200 Section 200.302 Financial Management states that the financial management system of each non-federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award in accordance with the reporting requirements. Additionally, 2 CFR Part 200 Section 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD and Uniform Guidance requirements and the possibility of undetected material misstatements and/or undetected misappropriation of assets. Context: An understanding of processes and internal controls was performed with the Organization's management and tests were performed to determine if the processes and internal controls were implemented and effective. As part of this process we noted the following processes and internal controls were not effective and/or implemented. 1) Bank accounts were not reconciled during the year ending June 30, 2023. 2) Significant accounts were not reconciled. 3) Financial statements and/or reconciled financial information was not reviewed by management or the board of directors. While applying audit procedures, significant adjustments were identified as necessary to properly reflect the financial data in accordance with generally accepted accounting principles. Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Furthermore, we recommend that the Organization consider additional financial and accounting training. Questioned Costs: N/A Reporting Views of Responsible Officials: Management agrees with the finding and will review the accounting and financial procedures, system of internal controls and policies.
Finding 2023-002 - U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: For the year ended June 30, 2022, the Organization did not submit their audited financial statements to HUD by the required deadline. For the year ended June 30, 2023, the Organization did not submit their unaudited or audited financial statements to HUD by the required deadline. Criteria: The Uniform Financial Reporting Standards (24 CFR Section 5.801) require the Organization to submit timely GAAP-based unaudited and audited financial information electronically to HUD via the Financial Assessment Sub-System (FASS-PH). Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD requirements. Context: A test was performed to review the prior year submission of the audited financial statement submission to HUD for the year ended June 30, 2022 noting the audited financial statements had not been submitted to HUD. A test was performed to review the unaudited financial statement submission to HUD for the year ended June 30, 2023 noting the unaudited financial statement submission to HUD had not been submitted to HUD. Questioned Costs: N/A Recommendation: We recommend the Organization submit their financial report as soon as possible. Furthermore, we recommend that the Organization consider additional training related to HUD reporting requirements. Reporting Views of Responsible Officials and Corrective Action Plan: Management agrees with the above finding and will submit their financial information for the year ended June 30, 2022 and 2023. Management will re-evaluate its policies and procedures to determine any necessary changes.
Finding 2023-002 - U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: For the year ended June 30, 2022, the Organization did not submit their audited financial statements to HUD by the required deadline. For the year ended June 30, 2023, the Organization did not submit their unaudited or audited financial statements to HUD by the required deadline. Criteria: The Uniform Financial Reporting Standards (24 CFR Section 5.801) require the Organization to submit timely GAAP-based unaudited and audited financial information electronically to HUD via the Financial Assessment Sub-System (FASS-PH). Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD requirements. Context: A test was performed to review the prior year submission of the audited financial statement submission to HUD for the year ended June 30, 2022 noting the audited financial statements had not been submitted to HUD. A test was performed to review the unaudited financial statement submission to HUD for the year ended June 30, 2023 noting the unaudited financial statement submission to HUD had not been submitted to HUD. Questioned Costs: N/A Recommendation: We recommend the Organization submit their financial report as soon as possible. Furthermore, we recommend that the Organization consider additional training related to HUD reporting requirements. Reporting Views of Responsible Officials and Corrective Action Plan: Management agrees with the above finding and will submit their financial information for the year ended June 30, 2022 and 2023. Management will re-evaluate its policies and procedures to determine any necessary changes.
Finding 2023-003 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: The Organization did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2023 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with Uniform Guidance regulations. Context: The books and records were not reconciled and ready to be audited by the required due date of the reporting package to the FAC. Questioned Costs: N/A Recommendation: We recommend the management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Furthermore, we recommend that the Organization consider additional financial and accounting training. Reporting Views of Responsible Officials and Corrective Action Plan: The Board of Directors and management acknowledge that the data collection form for the year ended June 30, 2023 is past the required due date. Management will ensure the data collection forms are submitted electronically to the FAC each fiscal year within nine months of each fiscal year end.
Finding 2023-003 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: The Organization did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2023 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with Uniform Guidance regulations. Context: The books and records were not reconciled and ready to be audited by the required due date of the reporting package to the FAC. Questioned Costs: N/A Recommendation: We recommend the management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Furthermore, we recommend that the Organization consider additional financial and accounting training. Reporting Views of Responsible Officials and Corrective Action Plan: The Board of Directors and management acknowledge that the data collection form for the year ended June 30, 2023 is past the required due date. Management will ensure the data collection forms are submitted electronically to the FAC each fiscal year within nine months of each fiscal year end.
Finding 2023-003 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: The Organization did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2023 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with Uniform Guidance regulations. Context: The books and records were not reconciled and ready to be audited by the required due date of the reporting package to the FAC. Questioned Costs: N/A Recommendation: We recommend the management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Furthermore, we recommend that the Organization consider additional financial and accounting training. Reporting Views of Responsible Officials and Corrective Action Plan: The Board of Directors and management acknowledge that the data collection form for the year ended June 30, 2023 is past the required due date. Management will ensure the data collection forms are submitted electronically to the FAC each fiscal year within nine months of each fiscal year end.
Finding 2023-003 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: The Organization did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2023 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with Uniform Guidance regulations. Context: The books and records were not reconciled and ready to be audited by the required due date of the reporting package to the FAC. Questioned Costs: N/A Recommendation: We recommend the management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Furthermore, we recommend that the Organization consider additional financial and accounting training. Reporting Views of Responsible Officials and Corrective Action Plan: The Board of Directors and management acknowledge that the data collection form for the year ended June 30, 2023 is past the required due date. Management will ensure the data collection forms are submitted electronically to the FAC each fiscal year within nine months of each fiscal year end.
Finding 2023-003 - U.S. Department of Health and Human Services, Community Services Block Grant, Assistance Listing #93.569; U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: The Organization did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2023 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with Uniform Guidance regulations. Context: The books and records were not reconciled and ready to be audited by the required due date of the reporting package to the FAC. Questioned Costs: N/A Recommendation: We recommend the management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Furthermore, we recommend that the Organization consider additional financial and accounting training. Reporting Views of Responsible Officials and Corrective Action Plan: The Board of Directors and management acknowledge that the data collection form for the year ended June 30, 2023 is past the required due date. Management will ensure the data collection forms are submitted electronically to the FAC each fiscal year within nine months of each fiscal year end.