FAC Explorer

Audit 47656

FY End
2022-06-30
Total Expended
$907,238
Findings
2
Programs
4
Organization: Cumberland Healthnet (NC)
Year: 2022 Accepted: 2023-03-28
Auditor: Langdon & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50535 2022-001 Material Weakness - P
626977 2022-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
93.011 National Organizations of State and Local Officials $655,664 Yes 1
93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated and State Partnership Marketplaces $89,749 - 0
14.218 Community Development Block Grants/entitlement Grants $78,623 - 0
14.267 Continuum of Care Program $43,452 - 0

Contacts

Name Title Type
P9F8XA3GF493 Brenda Sparks Auditee
9104757104 Karen Stanley Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the Organization and is presented on the accrual basis of accounting. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. The Organization has elected to use the 10 percent de minimum indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.

Finding Details

Finding 2022-001
Condition & Criteria: Significant misstatements were noted during the audit. Effective internal controls include the Organization?s controls over the financial close process. Cause: The internal control structure of the Organization has focused primarily on the objective of effectiveness and efficiency of operations. Effect: Significant misstatements were detected, resulting in a material weakness. Auditor's Recommendation: While this is not unusual for organizations of similar size, the Organization should assess the adequacy of the design of its policies and procedures related to the financial close process and design appropriate controls as necessary. Views of Responsible Officials and Planned Corrective Actions: The current year presented some challenges with significant new grant funding and resulting growth, as well as employee turnover. At the end of the fiscal year, the Organization increased the responsibilities of its outsourced accountant to assist and improve controls. We have and will continue to improve our controls over the year-end financial close process.
Finding 2022-001
Condition & Criteria: Significant misstatements were noted during the audit. Effective internal controls include the Organization?s controls over the financial close process. Cause: The internal control structure of the Organization has focused primarily on the objective of effectiveness and efficiency of operations. Effect: Significant misstatements were detected, resulting in a material weakness. Auditor's Recommendation: While this is not unusual for organizations of similar size, the Organization should assess the adequacy of the design of its policies and procedures related to the financial close process and design appropriate controls as necessary. Views of Responsible Officials and Planned Corrective Actions: The current year presented some challenges with significant new grant funding and resulting growth, as well as employee turnover. At the end of the fiscal year, the Organization increased the responsibilities of its outsourced accountant to assist and improve controls. We have and will continue to improve our controls over the year-end financial close process.