Finding 1168380 (2024-003)

Material Weakness Repeat Finding
Requirement
FL
Questioned Costs
-
Year
2024
Accepted
2026-01-08
Audit: 380207
Organization: Casa (NC)

AI Summary

  • Core Issue: The Organization did not submit the required Federal Financial Report (SF-425) and Real Property Status Report (SF-429) for the fiscal year ending June 30, 2024.
  • Impacted Requirements: Compliance with 2 CFR §200.329 mandates semi-annual and annual reporting for federal grants, which was not met.
  • Recommended Follow-Up: Management should review grant agreements and federal regulations to ensure all reports are submitted on time and improve training for staff on compliance requirements.

Finding Text

Finding 2024-003: U.S. Department of Housing and Urban Development, Community Project Funding Statement of Condition: During the fiscal year ended June 30, 2024, the Organization failed to submit the required Federal Financial Report (SF-425) and Real Property Status Report (SF-429) during the reporting period. These reports are essential for federal oversight and accountability of grant funds and federally funded property. Criteria: Under 2 CFR §200.329(c)(2) and (d), recipients of federal awards must submit financial reports using the SF-425 on a semi-annual basis and must submit the SF-429 annually to report the status of real property purchased, constructed, or renovated with federal funds. These requirements are reinforced by the terms and conditions of the grant agreement and the Office of Management and Budget (OMB) guidance. Cause: The Organization's staff charged with grant management were unaware of the reporting requirements, indicating a lack of training and internal controls to ensure compliance with federal reporting obligations. Effect: Failure to submit the SF-425 and SF-429 reports compromises the federal governments' ability to monitor the financial and property management of the grant, which may result in delays in future funding disbursements, increased risk of questioned costs, and potential noncompliance with federal grant regulations. Context: Neither semi-annual SF-425 nor the annual SF-429 was submitted by the Organization during the fiscal year ended June 30, 2024. Questioned costs: $0 Recommendation: Management should review the grant agreement and applicable federal regulations to identify all required reports, and implement procedures to ensure submission of all required reports by their due dates. Management's Response and Corrective Action Plan: Management agrees with the finding and is taking steps to file all required reports.

Corrective Action Plan

CASA 624 W Jones St. Raleigh, North Carolina 27603 CORRECTIVE ACTION PLAN December 9, 2025 Single Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 CASA (the "Organization"), respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 Audit period: Year ended June 30, 2024 The findings from the June 30, 2024 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings and Questioned Costs: Section II - Findings relating to the financial statements which are required to be reported in accordance with generally accepted Government Auditing Standards and Section III - Findings and questioned costs relating to the major programs which are required to be reported as defined by the Uniform Guidance [2 CFR 200.516(a)]: Finding 2024-003: U.S. Department of Housing and Urban Development, Community Project Funding Recommendation: Management should review the grant agreement and applicable federal regulations to identify all required reports, and implement procedures to ensure submission of all required reports by their due dates. Management's Response and Corrective Action Plan: Management agrees with the finding and is taking steps to file all required reports. If you have questions regarding this plan, please call Everett McElveen at 919-754-9960. Sincerely yours, Everett McElveen CASA

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1168378 2024-001
    Material Weakness Repeat
  • 1168379 2024-002
    Material Weakness Repeat
  • 1168381 2024-004
    Material Weakness Repeat
  • 1168382 2024-001
    Material Weakness Repeat
  • 1168383 2024-002
    Material Weakness Repeat
  • 1168384 2024-001
    Material Weakness Repeat
  • 1168385 2024-002
    Material Weakness Repeat
  • 1168386 2024-001
    Material Weakness Repeat
  • 1168387 2024-002
    Material Weakness Repeat
  • 1168388 2024-001
    Material Weakness Repeat
  • 1168389 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.235 SUPPORTIVE HOUSING PROGRAM $1.88M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $1.57M
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $1.38M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $464,805
14.267 CONTINUUM OF CARE PROGRAM $189,145