U. S. Department of Health and Human Services - Head Start Program Cluster - Assistance Listing #93.600 - Finding 2022-001 - Reporting Criteria: Proper reporting should be completed and filed timely by the agency. Condition: During 2022, the SF-429 for Real Property report was not filed timely. The SF-429 for Real Property was due July 30, 2022 and was not filed until January 9, 2023. Cause: The Agency was not aware that it was a requirement for the report to be filed. Effect: The Agency was not in compliance with the grant's reporting requirement. Recommendation: The Agency should take steps to ensure that the report is properly completed and filed timely. Views of responsible official: The Agency agrees with the finding and will make improvements in review and approval of required reporting and ensuring timely filing. Contact person: Michelle Cox, Chief Financial Officer. Corrective Action Plan: See Client's Corrective Action Plan.
U. S. Department of Health and Human Services - Head Start Program Cluster - Assistance Listing #93.600 - Finding 2022-002 Equipment and Real Property Management Criteria: Property additions purchased with grant funds are recorded timely to the property inventory. Condition: During 2022, (4) of (13) instances of newly acquired property and equipment, that we tested, were not added to the physical inventory and is part of a systematic condition. Cause: The Agency had new employees in positions that were responsible for the property management system and the controls were not implemented properly. Effect: The Agency was not in compliance with the grant's equipment and real property management requirement and property not controlled by the property inventory may not be properly safeguarded. Recommendation: The Agency should take steps to ensure that additions to property and equipment are properly included in the property inventory. Views of responsible official: The Agency agrees with the finding and will take necessary steps to maintain a complete property inventory. Contact person: Michelle Cox, Chief Financial Officer. Corrective Action Plan: See Client's Corrective Action Plan.
U. S. Department of Health and Human Services - Head Start Program Cluster - Assistance Listing #93.600 - Finding 2022-002 Equipment and Real Property Management Criteria: Property additions purchased with grant funds are recorded timely to the property inventory. Condition: During 2022, (4) of (13) instances of newly acquired property and equipment, that we tested, were not added to the physical inventory and is part of a systematic condition. Cause: The Agency had new employees in positions that were responsible for the property management system and the controls were not implemented properly. Effect: The Agency was not in compliance with the grant's equipment and real property management requirement and property not controlled by the property inventory may not be properly safeguarded. Recommendation: The Agency should take steps to ensure that additions to property and equipment are properly included in the property inventory. Views of responsible official: The Agency agrees with the finding and will take necessary steps to maintain a complete property inventory. Contact person: Michelle Cox, Chief Financial Officer. Corrective Action Plan: See Client's Corrective Action Plan.
U. S. Department of Housing and Urban Development (Pass-through from Virginia Office of Community Planning and Development) Assistance Listing #14.267 Finding 2022-003 Known Questioned Costs for a Federal Program Not Audited as a Major Program Criteria: In accordance with 2 CFR 200.516(a)(4) known questioned costs that are greater than $25,000 for a program that is not audited as a major program must be reported as an audit finding in the federal awards section of the schedule of findings and questioned costs. In September 2022, the U. S. Department of Housing and Urban Development/Virginia Office of Community Planning and Development, identified $1,463 of unallowed expenditures and a deficit of $27,464 in the required cash match under the Continuum of Care program for the year ended December 31, 2021, as a result of monitoring. Condition: The Federal awarding agency has determined, in accordance with 24 CFR 578.51; 24 CFR 578.57, $1,463 of allowable HMIS expenses were not documented and that in accordance with 2 CFR 200.1; 2 CFR 200.103(a)(11); 2 CFR 200.306; 24 CFR 578.73 the grantee failed to match $27,464 on its Continuum of Care rapid rehousing project. Cause: The Federal awarding agency believes staff requesting reimbursement were not fully aware of what constitutes an allowable project expense and that grantee misinterpreted regulations concerning match for Federal grants. Effect: The Federal awarding agency asserts that grantee requested reimbursement for non-reimbursable expenses and did not contribute the required match to its Continuum of Care project. Recommendation: Grantee is required to repay $1,463 for unallowable HMIS and $27,464 for match deficit. Views of responsible official: NRCA has developed a corrective action plan. NRCA is in the process of resolving this matter with the Department of HUD and is currently seeking counsel to ensure this resolution is resolved in an acceptable and appropriate manner. Contact person: Krystal Thompson, Executive Director Corrective Action Plan: See Client's Corrective Action Plan.
U. S. Department of Health and Human Services - Head Start Program Cluster - Assistance Listing #93.600 - Finding 2022-001 - Reporting Criteria: Proper reporting should be completed and filed timely by the agency. Condition: During 2022, the SF-429 for Real Property report was not filed timely. The SF-429 for Real Property was due July 30, 2022 and was not filed until January 9, 2023. Cause: The Agency was not aware that it was a requirement for the report to be filed. Effect: The Agency was not in compliance with the grant's reporting requirement. Recommendation: The Agency should take steps to ensure that the report is properly completed and filed timely. Views of responsible official: The Agency agrees with the finding and will make improvements in review and approval of required reporting and ensuring timely filing. Contact person: Michelle Cox, Chief Financial Officer. Corrective Action Plan: See Client's Corrective Action Plan.
U. S. Department of Health and Human Services - Head Start Program Cluster - Assistance Listing #93.600 - Finding 2022-002 Equipment and Real Property Management Criteria: Property additions purchased with grant funds are recorded timely to the property inventory. Condition: During 2022, (4) of (13) instances of newly acquired property and equipment, that we tested, were not added to the physical inventory and is part of a systematic condition. Cause: The Agency had new employees in positions that were responsible for the property management system and the controls were not implemented properly. Effect: The Agency was not in compliance with the grant's equipment and real property management requirement and property not controlled by the property inventory may not be properly safeguarded. Recommendation: The Agency should take steps to ensure that additions to property and equipment are properly included in the property inventory. Views of responsible official: The Agency agrees with the finding and will take necessary steps to maintain a complete property inventory. Contact person: Michelle Cox, Chief Financial Officer. Corrective Action Plan: See Client's Corrective Action Plan.
U. S. Department of Health and Human Services - Head Start Program Cluster - Assistance Listing #93.600 - Finding 2022-002 Equipment and Real Property Management Criteria: Property additions purchased with grant funds are recorded timely to the property inventory. Condition: During 2022, (4) of (13) instances of newly acquired property and equipment, that we tested, were not added to the physical inventory and is part of a systematic condition. Cause: The Agency had new employees in positions that were responsible for the property management system and the controls were not implemented properly. Effect: The Agency was not in compliance with the grant's equipment and real property management requirement and property not controlled by the property inventory may not be properly safeguarded. Recommendation: The Agency should take steps to ensure that additions to property and equipment are properly included in the property inventory. Views of responsible official: The Agency agrees with the finding and will take necessary steps to maintain a complete property inventory. Contact person: Michelle Cox, Chief Financial Officer. Corrective Action Plan: See Client's Corrective Action Plan.
U. S. Department of Housing and Urban Development (Pass-through from Virginia Office of Community Planning and Development) Assistance Listing #14.267 Finding 2022-003 Known Questioned Costs for a Federal Program Not Audited as a Major Program Criteria: In accordance with 2 CFR 200.516(a)(4) known questioned costs that are greater than $25,000 for a program that is not audited as a major program must be reported as an audit finding in the federal awards section of the schedule of findings and questioned costs. In September 2022, the U. S. Department of Housing and Urban Development/Virginia Office of Community Planning and Development, identified $1,463 of unallowed expenditures and a deficit of $27,464 in the required cash match under the Continuum of Care program for the year ended December 31, 2021, as a result of monitoring. Condition: The Federal awarding agency has determined, in accordance with 24 CFR 578.51; 24 CFR 578.57, $1,463 of allowable HMIS expenses were not documented and that in accordance with 2 CFR 200.1; 2 CFR 200.103(a)(11); 2 CFR 200.306; 24 CFR 578.73 the grantee failed to match $27,464 on its Continuum of Care rapid rehousing project. Cause: The Federal awarding agency believes staff requesting reimbursement were not fully aware of what constitutes an allowable project expense and that grantee misinterpreted regulations concerning match for Federal grants. Effect: The Federal awarding agency asserts that grantee requested reimbursement for non-reimbursable expenses and did not contribute the required match to its Continuum of Care project. Recommendation: Grantee is required to repay $1,463 for unallowable HMIS and $27,464 for match deficit. Views of responsible official: NRCA has developed a corrective action plan. NRCA is in the process of resolving this matter with the Department of HUD and is currently seeking counsel to ensure this resolution is resolved in an acceptable and appropriate manner. Contact person: Krystal Thompson, Executive Director Corrective Action Plan: See Client's Corrective Action Plan.