FAC Explorer

Audit 363358

FY End
2024-10-31
Total Expended
$10.58M
Findings
6
Programs
4
Organization: Nash Edgecombe Wilson Community Action, Inc. (NC)
Year: 2024 Accepted: 2025-07-30
Auditor: Bernard Robinson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
572229 2024-001 Material Weakness - L
572230 2024-002 Material Weakness - N
572231 2024-003 Material Weakness - N
1148671 2024-001 Material Weakness - L
1148672 2024-002 Material Weakness - N
1148673 2024-003 Material Weakness - N

Programs

ALN Program Spent Major Findings
93.600 Head Start $6.42M - 0
14.871 Section 8 Housing Choice Vouchers $3.08M Yes 3
10.558 Child and Adult Care Food Program $605,214 - 0
93.569 Community Services Block Grant $473,221 - 0

Contacts

Name Title Type
X9TVJC1PEZT8 Pamela Small Auditee
2528227915 Victor Blackburn Auditor
No contacts on file

Notes to SEFA

Title: Basis of Preseentation 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 where in certain types of expenditures are not allowable or are limited as to reimbursement. Nash Edgecombe Wilson Community Action, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Have their own internal rate that is part of approved grant budget The accompanying schedule of revenues and expenditures of federal awards (the "Schedule")includes the federal award activity of Nash Edgecombe Wilson Community Action, Inc., under programs of the federal government for the year ended October 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title2 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 Nash Edgecombe Wilson Community Action, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Nash Edgecombe Wilson Community Action, Inc.
Title: Summary of Significant Accounting Policies 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 where in certain types of expenditures are not allowable or are limited as to reimbursement. Nash Edgecombe Wilson Community Action, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Have their own internal rate that is part of approved grant budget 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 where in certain types of expenditures are not allowable or are limited as to reimbursement. Nash Edgecombe Wilson Community Action, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
Criteria: The Agency is required to timely submit unaudited and audited Financial Reports to the Financial Assessment Sub-system. Questioned Costs: None Effect: The Agency was not in compliance with the Uniform Guidance due to the lack of filing. Cause: The Agency was not aware it was not caught up with the filings and was notified during a HUD inspection. Recommendation: Management should catch up on filings and set up procedures to ensure future filings are filed timely. Views of Responsible Officials and Planned Corrective Actions: The Agency agrees with the finding and is working on with a CPA to catch up on the filings. They have noted the deadlines for the filings moving forward.
Finding 2024-002
Criteria: The Agency is required to maintain an up to date utility allowance schedule, and the agency must review the utility rate data each year. Questioned Costs: None Effect: The Agency was not in compliance with the Uniform Guidance due to the analyzing of the utility rate data since 2022. Cause: The Agency had numerous HUD program directors, and the director at the time did not carry out the analysis. Recommendation: Management should set up procedures to ensure utility rate data is analyzed each year. Views of Responsible Officials and Planned Corrective Actions: The Agency agrees with the finding and has implemented procedures and has already evaluated the utility rate data for fiscal year 2025.
Finding 2024-003
Criteria: The Agency is required to inspect units to determine if the unit meets Housing Quality Standards. A unit inspection report must be completed and filed. Questioned Costs: $333,467 in prior disallowed, questioned, or overpaid costs. Effect: The Agency was not in compliance with the Uniform Guidance due to not filing the required reports or tracking the inspections appropriately. Cause: The Agency had numerous HUD program directors, and the director at the time did not ensure the proper software was installed to track inspections and file the reports. Recommendation: Management should purchase the software product to track and file HQS inspections. Views of Responsible Officials and Planned Corrective Actions: The Agency agrees with the finding and has purchased a software package to track and file inspections. The staff has been trained on the software, and it has been implemented in fiscal year 2025. The Agency also performed inspections on all units in fiscal year 2025. After inspections are complete, Agency will be in compliance with HUD and should not have to pay back the questioned costs.
Finding 2024-001
Criteria: The Agency is required to timely submit unaudited and audited Financial Reports to the Financial Assessment Sub-system. Questioned Costs: None Effect: The Agency was not in compliance with the Uniform Guidance due to the lack of filing. Cause: The Agency was not aware it was not caught up with the filings and was notified during a HUD inspection. Recommendation: Management should catch up on filings and set up procedures to ensure future filings are filed timely. Views of Responsible Officials and Planned Corrective Actions: The Agency agrees with the finding and is working on with a CPA to catch up on the filings. They have noted the deadlines for the filings moving forward.
Finding 2024-002
Criteria: The Agency is required to maintain an up to date utility allowance schedule, and the agency must review the utility rate data each year. Questioned Costs: None Effect: The Agency was not in compliance with the Uniform Guidance due to the analyzing of the utility rate data since 2022. Cause: The Agency had numerous HUD program directors, and the director at the time did not carry out the analysis. Recommendation: Management should set up procedures to ensure utility rate data is analyzed each year. Views of Responsible Officials and Planned Corrective Actions: The Agency agrees with the finding and has implemented procedures and has already evaluated the utility rate data for fiscal year 2025.
Finding 2024-003
Criteria: The Agency is required to inspect units to determine if the unit meets Housing Quality Standards. A unit inspection report must be completed and filed. Questioned Costs: $333,467 in prior disallowed, questioned, or overpaid costs. Effect: The Agency was not in compliance with the Uniform Guidance due to not filing the required reports or tracking the inspections appropriately. Cause: The Agency had numerous HUD program directors, and the director at the time did not ensure the proper software was installed to track inspections and file the reports. Recommendation: Management should purchase the software product to track and file HQS inspections. Views of Responsible Officials and Planned Corrective Actions: The Agency agrees with the finding and has purchased a software package to track and file inspections. The staff has been trained on the software, and it has been implemented in fiscal year 2025. The Agency also performed inspections on all units in fiscal year 2025. After inspections are complete, Agency will be in compliance with HUD and should not have to pay back the questioned costs.