Audit 42943

FY End
2022-06-30
Total Expended
$906,669
Findings
14
Programs
4
Year: 2022 Accepted: 2023-03-26
Auditor: Bergankdv

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
49926 2022-001 Significant Deficiency Yes AB
49927 2022-001 Significant Deficiency Yes AB
49928 2022-001 Significant Deficiency Yes AB
49929 2022-002 Significant Deficiency Yes N
49930 2022-001 Significant Deficiency Yes AB
49931 2022-002 Significant Deficiency Yes N
49932 2022-001 Significant Deficiency Yes AB
626368 2022-001 Significant Deficiency Yes AB
626369 2022-001 Significant Deficiency Yes AB
626370 2022-001 Significant Deficiency Yes AB
626371 2022-002 Significant Deficiency Yes N
626372 2022-001 Significant Deficiency Yes AB
626373 2022-002 Significant Deficiency Yes N
626374 2022-001 Significant Deficiency Yes AB

Programs

ALN Program Spent Major Findings
14.231 Emergency Solutions Grant Program $238,474 Yes 1
14.169 Housing Counseling Assistance Program $34,729 - 0
14.239 Home Investment Partnerships Program $27,810 - 0
14.218 Community Development Block Grants/entitlement Grants $26,795 - 0

Contacts

Name Title Type
MAMZYLG659M8 Anthony Montgomery Auditee
5152431277 Brent Alexander 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, which conforms to accounting principles generally accepted in the United States of America. 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: HOME, Inc. has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of HOME, Inc. under programs of the federal government for the year ended June 30, 2022. 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 HOME, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of HOME, Inc.
Title: PASS THROUGH IDENTIFICATION NUMBERS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which conforms to accounting principles generally accepted in the United States of America. 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: HOME, Inc. has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. Some of the programs, grants and/or awards included in the Schedule are missing the pass-through entity identification number. The missing numbers are due to the pass-through entities not providing the pass-through identification numbers.

Finding Details

Criteria: The financial statements are the responsibility of the organization?s management. Condition: During our audit, material adjustments were needed to correct the recording of various asset, liability, revenue, and expense accounts. Cause: While reconciliations are being performed, it was noted during the audit that some of them were incomplete and/or incorrect. In addition, there was also an issue related the cutoff and the recording of accounts payable. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the organization?s system of internal control. The audit firm cannot serve as a compensating control. Repeat Finding: This is a repeat finding, see finding 2021-001 in the prior year report. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the governmental grant reporting forms. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed and implemented new procedures for the monthly reconciliation process that reconciles the general ledger to the government grant reporting forms. Additionally, the organization is in the process of transitioning controller responsibilities to a third-party financial services firm.
Criteria: The financial statements are the responsibility of the organization?s management. Condition: During our audit, material adjustments were needed to correct the recording of various asset, liability, revenue, and expense accounts. Cause: While reconciliations are being performed, it was noted during the audit that some of them were incomplete and/or incorrect. In addition, there was also an issue related the cutoff and the recording of accounts payable. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the organization?s system of internal control. The audit firm cannot serve as a compensating control. Repeat Finding: This is a repeat finding, see finding 2021-001 in the prior year report. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the governmental grant reporting forms. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed and implemented new procedures for the monthly reconciliation process that reconciles the general ledger to the government grant reporting forms. Additionally, the organization is in the process of transitioning controller responsibilities to a third-party financial services firm.
Criteria: The financial statements are the responsibility of the organization?s management. Condition: During our audit, material adjustments were needed to correct the recording of various asset, liability, revenue, and expense accounts. Cause: While reconciliations are being performed, it was noted during the audit that some of them were incomplete and/or incorrect. In addition, there was also an issue related the cutoff and the recording of accounts payable. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the organization?s system of internal control. The audit firm cannot serve as a compensating control. Repeat Finding: This is a repeat finding, see finding 2021-001 in the prior year report. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the governmental grant reporting forms. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed and implemented new procedures for the monthly reconciliation process that reconciles the general ledger to the government grant reporting forms. Additionally, the organization is in the process of transitioning controller responsibilities to a third-party financial services firm.
Criteria: Payments reimbursed to subrecipients should be made within 30 days of receipt of the payment request. Condition: During our testing of special tests and provisions, we noted multiple payments to subrecipients that were not made within 30 days. Cause: Payments to subrecipients were not made until reimbursement was received from the awarding agency. Effect: Payments to subrecipients were not made within 30 days of receipt of the payment request. Repeat Finding: This is a repeat finding, see finding 2021-002 in the prior year report. Recommendation: A system needs to be put into place to track when payment requests are made to ensure payments to subrecipients can be made timely. Questioned Costs: None. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed a procedure and tracking system for the submission of payment requests from our subrecipients and reimbursement payments to the subrecipients to ensure payments are made within 30 days of the receipt of the request.
Criteria: The financial statements are the responsibility of the organization?s management. Condition: During our audit, material adjustments were needed to correct the recording of various asset, liability, revenue, and expense accounts. Cause: While reconciliations are being performed, it was noted during the audit that some of them were incomplete and/or incorrect. In addition, there was also an issue related the cutoff and the recording of accounts payable. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the organization?s system of internal control. The audit firm cannot serve as a compensating control. Repeat Finding: This is a repeat finding, see finding 2021-001 in the prior year report. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the governmental grant reporting forms. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed and implemented new procedures for the monthly reconciliation process that reconciles the general ledger to the government grant reporting forms. Additionally, the organization is in the process of transitioning controller responsibilities to a third-party financial services firm.
Criteria: Payments reimbursed to subrecipients should be made within 30 days of receipt of the payment request. Condition: During our testing of special tests and provisions, we noted multiple payments to subrecipients that were not made within 30 days. Cause: Payments to subrecipients were not made until reimbursement was received from the awarding agency. Effect: Payments to subrecipients were not made within 30 days of receipt of the payment request. Repeat Finding: This is a repeat finding, see finding 2021-002 in the prior year report. Recommendation: A system needs to be put into place to track when payment requests are made to ensure payments to subrecipients can be made timely. Questioned Costs: None. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed a procedure and tracking system for the submission of payment requests from our subrecipients and reimbursement payments to the subrecipients to ensure payments are made within 30 days of the receipt of the request.
Criteria: The financial statements are the responsibility of the organization?s management. Condition: During our audit, material adjustments were needed to correct the recording of various asset, liability, revenue, and expense accounts. Cause: While reconciliations are being performed, it was noted during the audit that some of them were incomplete and/or incorrect. In addition, there was also an issue related the cutoff and the recording of accounts payable. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the organization?s system of internal control. The audit firm cannot serve as a compensating control. Repeat Finding: This is a repeat finding, see finding 2021-001 in the prior year report. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the governmental grant reporting forms. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed and implemented new procedures for the monthly reconciliation process that reconciles the general ledger to the government grant reporting forms. Additionally, the organization is in the process of transitioning controller responsibilities to a third-party financial services firm.
Criteria: The financial statements are the responsibility of the organization?s management. Condition: During our audit, material adjustments were needed to correct the recording of various asset, liability, revenue, and expense accounts. Cause: While reconciliations are being performed, it was noted during the audit that some of them were incomplete and/or incorrect. In addition, there was also an issue related the cutoff and the recording of accounts payable. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the organization?s system of internal control. The audit firm cannot serve as a compensating control. Repeat Finding: This is a repeat finding, see finding 2021-001 in the prior year report. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the governmental grant reporting forms. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed and implemented new procedures for the monthly reconciliation process that reconciles the general ledger to the government grant reporting forms. Additionally, the organization is in the process of transitioning controller responsibilities to a third-party financial services firm.
Criteria: The financial statements are the responsibility of the organization?s management. Condition: During our audit, material adjustments were needed to correct the recording of various asset, liability, revenue, and expense accounts. Cause: While reconciliations are being performed, it was noted during the audit that some of them were incomplete and/or incorrect. In addition, there was also an issue related the cutoff and the recording of accounts payable. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the organization?s system of internal control. The audit firm cannot serve as a compensating control. Repeat Finding: This is a repeat finding, see finding 2021-001 in the prior year report. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the governmental grant reporting forms. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed and implemented new procedures for the monthly reconciliation process that reconciles the general ledger to the government grant reporting forms. Additionally, the organization is in the process of transitioning controller responsibilities to a third-party financial services firm.
Criteria: The financial statements are the responsibility of the organization?s management. Condition: During our audit, material adjustments were needed to correct the recording of various asset, liability, revenue, and expense accounts. Cause: While reconciliations are being performed, it was noted during the audit that some of them were incomplete and/or incorrect. In addition, there was also an issue related the cutoff and the recording of accounts payable. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the organization?s system of internal control. The audit firm cannot serve as a compensating control. Repeat Finding: This is a repeat finding, see finding 2021-001 in the prior year report. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the governmental grant reporting forms. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed and implemented new procedures for the monthly reconciliation process that reconciles the general ledger to the government grant reporting forms. Additionally, the organization is in the process of transitioning controller responsibilities to a third-party financial services firm.
Criteria: Payments reimbursed to subrecipients should be made within 30 days of receipt of the payment request. Condition: During our testing of special tests and provisions, we noted multiple payments to subrecipients that were not made within 30 days. Cause: Payments to subrecipients were not made until reimbursement was received from the awarding agency. Effect: Payments to subrecipients were not made within 30 days of receipt of the payment request. Repeat Finding: This is a repeat finding, see finding 2021-002 in the prior year report. Recommendation: A system needs to be put into place to track when payment requests are made to ensure payments to subrecipients can be made timely. Questioned Costs: None. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed a procedure and tracking system for the submission of payment requests from our subrecipients and reimbursement payments to the subrecipients to ensure payments are made within 30 days of the receipt of the request.
Criteria: The financial statements are the responsibility of the organization?s management. Condition: During our audit, material adjustments were needed to correct the recording of various asset, liability, revenue, and expense accounts. Cause: While reconciliations are being performed, it was noted during the audit that some of them were incomplete and/or incorrect. In addition, there was also an issue related the cutoff and the recording of accounts payable. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the organization?s system of internal control. The audit firm cannot serve as a compensating control. Repeat Finding: This is a repeat finding, see finding 2021-001 in the prior year report. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the governmental grant reporting forms. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed and implemented new procedures for the monthly reconciliation process that reconciles the general ledger to the government grant reporting forms. Additionally, the organization is in the process of transitioning controller responsibilities to a third-party financial services firm.
Criteria: Payments reimbursed to subrecipients should be made within 30 days of receipt of the payment request. Condition: During our testing of special tests and provisions, we noted multiple payments to subrecipients that were not made within 30 days. Cause: Payments to subrecipients were not made until reimbursement was received from the awarding agency. Effect: Payments to subrecipients were not made within 30 days of receipt of the payment request. Repeat Finding: This is a repeat finding, see finding 2021-002 in the prior year report. Recommendation: A system needs to be put into place to track when payment requests are made to ensure payments to subrecipients can be made timely. Questioned Costs: None. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed a procedure and tracking system for the submission of payment requests from our subrecipients and reimbursement payments to the subrecipients to ensure payments are made within 30 days of the receipt of the request.
Criteria: The financial statements are the responsibility of the organization?s management. Condition: During our audit, material adjustments were needed to correct the recording of various asset, liability, revenue, and expense accounts. Cause: While reconciliations are being performed, it was noted during the audit that some of them were incomplete and/or incorrect. In addition, there was also an issue related the cutoff and the recording of accounts payable. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the organization?s system of internal control. The audit firm cannot serve as a compensating control. Repeat Finding: This is a repeat finding, see finding 2021-001 in the prior year report. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the governmental grant reporting forms. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed and implemented new procedures for the monthly reconciliation process that reconciles the general ledger to the government grant reporting forms. Additionally, the organization is in the process of transitioning controller responsibilities to a third-party financial services firm.