FAC Explorer

Audit 8922

FY End
2023-06-30
Total Expended
$7.91M
Findings
4
Programs
9
Organization: Heart of West Michigan United Way (MI)
Year: 2023 Accepted: 2023-12-29
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6926 2023-001 Significant Deficiency Yes B
6927 2023-001 Significant Deficiency Yes B
583368 2023-001 Significant Deficiency Yes B
583369 2023-001 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
21.023 Covid-19 - Emergency Rental Assistance Program $4.94M Yes 1
14.231 Covid-19; Emergency Solutions Grant Program $296,686 - 0
14.267 Continuum of Care Program $128,080 - 0
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $50,810 - 0
93.434 Every Student Succeeds Act/preschool Development Grants $30,000 - 0
93.568 Covid-19; Low-Income Home Energy Assistance $16,877 - 0
14.231 Emergency Solutions Grant Program $10,000 - 0
14.218 Community Development Block Grants/entitlement Grants $5,000 - 0
10.190 Resilient Food Systems Infrastructure Program $1,126 - 0

Contacts

Name Title Type
MDKNHGACNNS8 Gail Montgomery Auditee
6167528645 Christina Hardy Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule") includes the federal grant activity of Heart of West Michigan United Way (the “Organization") under programs of the federal government for the year ended June 30, 2023. The information in the 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 (the “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, functional expenses, or cash flows of the Organization. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The passthrough entity identifying numbers are presented where available. The Organization has elected to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee has elected to use the de minimis cost rate

Finding Details

Finding 2023-001
Assistance Listing Number, Federal Agency, and Program Name - 21.023, U.S. Department of the Treasury, COVID-19 - Emergency Rental Assistance Program Federal Award Identification Number and Year - ERA0415, 2023 Pass-through Entity - Michigan State Housing Development Authority Finding Type - Significant deficiency Repeat Finding - Yes Prior Year Reference Number - 2022-001 Criteria - Per 2 CFR 200.303, an entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. The federal award agreement includes specific allowable costs calculated in accordance with the U.S. Treasury guidance. Condition - Controls in place did not identify an inaccurate calculation of assistance. Identification of How Questioned Costs Were Computed - Not applicable Context - Out of a sample of 60 assistance case numbers selected for allowability testing, 2 samples were not properly calculated in accordance with the U.S. Treasury guidance. The inaccurate calculation caused an overpayment and under payment in rental assistance charged to the program. Cause and Effect - While the Organization had procedures in place to review the rental assistance calculations, management's review did not prevent inaccurate assistance payments. As a result, the Organization disbursed an amount that was not calculated in accordance with the U.S. Treasury guidance. Recommendation - We recommend the Organization review its procedures and controls to ensure calculations of eligible expenses are performed accurately. Views of Responsible Officials and Corrective Action Plan - The grant is complete for direct assistance to eligible participants.
Finding 2023-001
Assistance Listing Number, Federal Agency, and Program Name - 21.023, U.S. Department of the Treasury, COVID-19 - Emergency Rental Assistance Program Federal Award Identification Number and Year - ERA0415, 2023 Pass-through Entity - Michigan State Housing Development Authority Finding Type - Significant deficiency Repeat Finding - Yes Prior Year Reference Number - 2022-001 Criteria - Per 2 CFR 200.303, an entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. The federal award agreement includes specific allowable costs calculated in accordance with the U.S. Treasury guidance. Condition - Controls in place did not identify an inaccurate calculation of assistance. Identification of How Questioned Costs Were Computed - Not applicable Context - Out of a sample of 60 assistance case numbers selected for allowability testing, 2 samples were not properly calculated in accordance with the U.S. Treasury guidance. The inaccurate calculation caused an overpayment and under payment in rental assistance charged to the program. Cause and Effect - While the Organization had procedures in place to review the rental assistance calculations, management's review did not prevent inaccurate assistance payments. As a result, the Organization disbursed an amount that was not calculated in accordance with the U.S. Treasury guidance. Recommendation - We recommend the Organization review its procedures and controls to ensure calculations of eligible expenses are performed accurately. Views of Responsible Officials and Corrective Action Plan - The grant is complete for direct assistance to eligible participants.
Finding 2023-001
Assistance Listing Number, Federal Agency, and Program Name - 21.023, U.S. Department of the Treasury, COVID-19 - Emergency Rental Assistance Program Federal Award Identification Number and Year - ERA0415, 2023 Pass-through Entity - Michigan State Housing Development Authority Finding Type - Significant deficiency Repeat Finding - Yes Prior Year Reference Number - 2022-001 Criteria - Per 2 CFR 200.303, an entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. The federal award agreement includes specific allowable costs calculated in accordance with the U.S. Treasury guidance. Condition - Controls in place did not identify an inaccurate calculation of assistance. Identification of How Questioned Costs Were Computed - Not applicable Context - Out of a sample of 60 assistance case numbers selected for allowability testing, 2 samples were not properly calculated in accordance with the U.S. Treasury guidance. The inaccurate calculation caused an overpayment and under payment in rental assistance charged to the program. Cause and Effect - While the Organization had procedures in place to review the rental assistance calculations, management's review did not prevent inaccurate assistance payments. As a result, the Organization disbursed an amount that was not calculated in accordance with the U.S. Treasury guidance. Recommendation - We recommend the Organization review its procedures and controls to ensure calculations of eligible expenses are performed accurately. Views of Responsible Officials and Corrective Action Plan - The grant is complete for direct assistance to eligible participants.
Finding 2023-001
Assistance Listing Number, Federal Agency, and Program Name - 21.023, U.S. Department of the Treasury, COVID-19 - Emergency Rental Assistance Program Federal Award Identification Number and Year - ERA0415, 2023 Pass-through Entity - Michigan State Housing Development Authority Finding Type - Significant deficiency Repeat Finding - Yes Prior Year Reference Number - 2022-001 Criteria - Per 2 CFR 200.303, an entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. The federal award agreement includes specific allowable costs calculated in accordance with the U.S. Treasury guidance. Condition - Controls in place did not identify an inaccurate calculation of assistance. Identification of How Questioned Costs Were Computed - Not applicable Context - Out of a sample of 60 assistance case numbers selected for allowability testing, 2 samples were not properly calculated in accordance with the U.S. Treasury guidance. The inaccurate calculation caused an overpayment and under payment in rental assistance charged to the program. Cause and Effect - While the Organization had procedures in place to review the rental assistance calculations, management's review did not prevent inaccurate assistance payments. As a result, the Organization disbursed an amount that was not calculated in accordance with the U.S. Treasury guidance. Recommendation - We recommend the Organization review its procedures and controls to ensure calculations of eligible expenses are performed accurately. Views of Responsible Officials and Corrective Action Plan - The grant is complete for direct assistance to eligible participants.