Audit 335152

FY End
2023-12-31
Total Expended
$1.08M
Findings
12
Programs
2
Year: 2023 Accepted: 2024-12-30
Auditor: Porte Brown LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
517189 2023-005 Material Weakness - L
517190 2023-006 - - L
517191 2023-007 Material Weakness - B
517192 2023-005 Material Weakness - L
517193 2023-006 - - L
517194 2023-007 Material Weakness - B
1093631 2023-005 Material Weakness - L
1093632 2023-006 - - L
1093633 2023-007 Material Weakness - B
1093634 2023-005 Material Weakness - L
1093635 2023-006 - - L
1093636 2023-007 Material Weakness - B

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $270,000 Yes 3
21.019 Coronavirus Relief Fund $206,301 - 0

Contacts

Name Title Type
JKNLSA5KVYC1 Desmond Marshall Auditee
7737502005 Danielle I Ciechanski 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 as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee did use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Project H.O.O.D. Community Development Corporation (the “Organization”) under programs of the federal government for the year ended December 31, 2023. The information in this Schedule 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 Schedule 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: SUBRECIPIENTS 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 as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee did use the de minimis cost rate. The Organization provided no amounts to subrecipients from the federal awards listed.
Title: NON-CASH ASSISTANCE 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 as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee did use the de minimis cost rate. The Organization had no non-cash assistance, federal insurance, or loan guarantees to be disclosed as required by the Uniform Guidance.
Title: LOANS OUTSTANDING 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 as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee did use the de minimis cost rate. There were no loans outstanding at June 30, 2023 related to the federal awards listed.
Title: DONATED PERSONAL PROTECTIVE EQUIPMENT 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 as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee did use the de minimis cost rate. The Organization did not receive donated personal protective equipment during the year ended June 30, 2023.

Finding Details

Condition: The SEFA submitted for the year ended December 31, 2023 was found to be incomplete. Criteria: Organizations are required to prepare a SEFA that includes all federal awards received and expended during the fiscal year. The SEFA must be complete and accurate to ensure compliance with federal reporting requirements. Cause: The inaccurate reporting of these federal awards appears to be due to lack of communication and oversight in data collection. Effect: The incomplete SEFA may lead to noncompliance with federal regulations, potentially resulting in loss of funding. Recommendation: The Organization should review its procedures for putting together the SEFA and ensure that there is a reconciliation with the general ledger and vouchers to ensure the SEFA is complete. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.
Condition: The audit reporting package and data collection form for the year ended December 31, 2023 was not submitted to the FAC within the timeframe as required by Uniform Guidance. Criteria: The auditee is responsible for ensuring the timely submission of the audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC). Cause: The audit was not completed as of the submission due date. Effect: The Organization does not qualify as a low-risk auditee. Recomendation: The Organization should submit the audit reporting package and data collection form as soon as the audit is available. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.
Condition: Amount of salaries allocated to federal programs are not consistently supported by employee timesheets or other similar documentation. Criteria: Internal controls should be in place that provide reasonable assurance that salaries for employees charged to federal programs are appropriately documented and reconciled. Cause: There are limited procedures in place that require reconciliation of actual hours expended to the program. Effect: Since employee salaries were not reconciled to corresponding timesheets, it is possible that employees' time and related costs may be inappropriately allocated amongst functional activities, including cost allocations to federal awards program. This could result in noncompliance with the Uniform Guidance. Context: This condition occurred in 5 out of 60 payroll transactions selected for testing. Total payroll transactions charged to the program were $532,634, of which $87,162 were selected for testing, representing 30 different employees. Recommendation: Existing timesheet reconciliation procedures should be revised. The organization should reconcile employee timesheets to amounts allocated to the grants on, at minimum, a quarterly basis, and ideally, on a monthly basis prior to the submission of vouchers or funding requests. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.
Condition: The SEFA submitted for the year ended December 31, 2023 was found to be incomplete. Criteria: Organizations are required to prepare a SEFA that includes all federal awards received and expended during the fiscal year. The SEFA must be complete and accurate to ensure compliance with federal reporting requirements. Cause: The inaccurate reporting of these federal awards appears to be due to lack of communication and oversight in data collection. Effect: The incomplete SEFA may lead to noncompliance with federal regulations, potentially resulting in loss of funding. Recommendation: The Organization should review its procedures for putting together the SEFA and ensure that there is a reconciliation with the general ledger and vouchers to ensure the SEFA is complete. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.
Condition: The audit reporting package and data collection form for the year ended December 31, 2023 was not submitted to the FAC within the timeframe as required by Uniform Guidance. Criteria: The auditee is responsible for ensuring the timely submission of the audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC). Cause: The audit was not completed as of the submission due date. Effect: The Organization does not qualify as a low-risk auditee. Recomendation: The Organization should submit the audit reporting package and data collection form as soon as the audit is available. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.
Condition: Amount of salaries allocated to federal programs are not consistently supported by employee timesheets or other similar documentation. Criteria: Internal controls should be in place that provide reasonable assurance that salaries for employees charged to federal programs are appropriately documented and reconciled. Cause: There are limited procedures in place that require reconciliation of actual hours expended to the program. Effect: Since employee salaries were not reconciled to corresponding timesheets, it is possible that employees' time and related costs may be inappropriately allocated amongst functional activities, including cost allocations to federal awards program. This could result in noncompliance with the Uniform Guidance. Context: This condition occurred in 5 out of 60 payroll transactions selected for testing. Total payroll transactions charged to the program were $532,634, of which $87,162 were selected for testing, representing 30 different employees. Recommendation: Existing timesheet reconciliation procedures should be revised. The organization should reconcile employee timesheets to amounts allocated to the grants on, at minimum, a quarterly basis, and ideally, on a monthly basis prior to the submission of vouchers or funding requests. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.
Condition: The SEFA submitted for the year ended December 31, 2023 was found to be incomplete. Criteria: Organizations are required to prepare a SEFA that includes all federal awards received and expended during the fiscal year. The SEFA must be complete and accurate to ensure compliance with federal reporting requirements. Cause: The inaccurate reporting of these federal awards appears to be due to lack of communication and oversight in data collection. Effect: The incomplete SEFA may lead to noncompliance with federal regulations, potentially resulting in loss of funding. Recommendation: The Organization should review its procedures for putting together the SEFA and ensure that there is a reconciliation with the general ledger and vouchers to ensure the SEFA is complete. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.
Condition: The audit reporting package and data collection form for the year ended December 31, 2023 was not submitted to the FAC within the timeframe as required by Uniform Guidance. Criteria: The auditee is responsible for ensuring the timely submission of the audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC). Cause: The audit was not completed as of the submission due date. Effect: The Organization does not qualify as a low-risk auditee. Recomendation: The Organization should submit the audit reporting package and data collection form as soon as the audit is available. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.
Condition: Amount of salaries allocated to federal programs are not consistently supported by employee timesheets or other similar documentation. Criteria: Internal controls should be in place that provide reasonable assurance that salaries for employees charged to federal programs are appropriately documented and reconciled. Cause: There are limited procedures in place that require reconciliation of actual hours expended to the program. Effect: Since employee salaries were not reconciled to corresponding timesheets, it is possible that employees' time and related costs may be inappropriately allocated amongst functional activities, including cost allocations to federal awards program. This could result in noncompliance with the Uniform Guidance. Context: This condition occurred in 5 out of 60 payroll transactions selected for testing. Total payroll transactions charged to the program were $532,634, of which $87,162 were selected for testing, representing 30 different employees. Recommendation: Existing timesheet reconciliation procedures should be revised. The organization should reconcile employee timesheets to amounts allocated to the grants on, at minimum, a quarterly basis, and ideally, on a monthly basis prior to the submission of vouchers or funding requests. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.
Condition: The SEFA submitted for the year ended December 31, 2023 was found to be incomplete. Criteria: Organizations are required to prepare a SEFA that includes all federal awards received and expended during the fiscal year. The SEFA must be complete and accurate to ensure compliance with federal reporting requirements. Cause: The inaccurate reporting of these federal awards appears to be due to lack of communication and oversight in data collection. Effect: The incomplete SEFA may lead to noncompliance with federal regulations, potentially resulting in loss of funding. Recommendation: The Organization should review its procedures for putting together the SEFA and ensure that there is a reconciliation with the general ledger and vouchers to ensure the SEFA is complete. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.
Condition: The audit reporting package and data collection form for the year ended December 31, 2023 was not submitted to the FAC within the timeframe as required by Uniform Guidance. Criteria: The auditee is responsible for ensuring the timely submission of the audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC). Cause: The audit was not completed as of the submission due date. Effect: The Organization does not qualify as a low-risk auditee. Recomendation: The Organization should submit the audit reporting package and data collection form as soon as the audit is available. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.
Condition: Amount of salaries allocated to federal programs are not consistently supported by employee timesheets or other similar documentation. Criteria: Internal controls should be in place that provide reasonable assurance that salaries for employees charged to federal programs are appropriately documented and reconciled. Cause: There are limited procedures in place that require reconciliation of actual hours expended to the program. Effect: Since employee salaries were not reconciled to corresponding timesheets, it is possible that employees' time and related costs may be inappropriately allocated amongst functional activities, including cost allocations to federal awards program. This could result in noncompliance with the Uniform Guidance. Context: This condition occurred in 5 out of 60 payroll transactions selected for testing. Total payroll transactions charged to the program were $532,634, of which $87,162 were selected for testing, representing 30 different employees. Recommendation: Existing timesheet reconciliation procedures should be revised. The organization should reconcile employee timesheets to amounts allocated to the grants on, at minimum, a quarterly basis, and ideally, on a monthly basis prior to the submission of vouchers or funding requests. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.