Finding 1205275 (2025-007)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-31
Audit: 396990
Organization: Roof Above, Inc. (NC)

AI Summary

  • Core Issue: Mecklenburg County failed to document that reports were reviewed by someone other than the preparer, leading to a significant deficiency in internal controls.
  • Impacted Requirements: This finding violates Section 200.303 of the Uniform Grant Guidance, which mandates effective internal controls for managing federal awards.
  • Recommended Follow-up: Ensure strict adherence to updated policies for report review and approval to prevent future deficiencies.

Finding Text

U.S. Department of Treasury Pass-through Entity: Mecklenburg County, North Carolina Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Significant Deficiency – Reporting Finding 2025-007 – Repeat Finding Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For two (2) of the nine (9) reports tested, the Organization did not have formal documentation that the report was reviewed by a separate individual from the one that prepared it prior to submission. Questioned Costs: None noted. Effect: Without the documentation being retained, the Organization cannot demonstrate they have appropriate controls in place to ensure accuracy of the information reported. Cause: The Organization did not follow its policy to document approval of reports prior to submission. Recommendation: While the Organization made updates to policies and procedures surrounding reporting during the current year to address the prior year finding and most reports did have a reviewer’s signature, the Organization should ensure this policy is adhered to in order to ensure all submitted reports are reviewed prior to submission. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.

Corrective Action Plan

Corrective Action Plan Reporting Finding 2025-007 Roof Above will ensure the review of all grant invoices is documented through the signature of the reviewer on the grant cover sheet. Roof Above will institute a policy that grant invoices will not be submitted without the corresponding review signature. Contact person responsible for corrective action: Tonya Frye, Chief Financial Officer Anticipated completion date: September 30, 2026

Categories

Subrecipient Monitoring Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1205261 2025-002
    Material Weakness Repeat
  • 1205262 2025-002
    Material Weakness Repeat
  • 1205263 2025-003
    Material Weakness Repeat
  • 1205264 2025-003
    Material Weakness Repeat
  • 1205265 2025-004
    Material Weakness Repeat
  • 1205266 2025-004
    Material Weakness Repeat
  • 1205267 2025-005
    Material Weakness Repeat
  • 1205268 2025-005
    Material Weakness Repeat
  • 1205269 2025-005
    Material Weakness Repeat
  • 1205270 2025-006
    Material Weakness Repeat
  • 1205271 2025-006
    Material Weakness Repeat
  • 1205272 2025-006
    Material Weakness Repeat
  • 1205273 2025-007
    Material Weakness Repeat
  • 1205274 2025-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.27M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $824,739
64.024 VA HOMELESS PROVIDERS GRANT AND PER DIEM PROGRAM $597,420
14.267 CONTINUUM OF CARE PROGRAM $163,236
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $129,876
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $100,000
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $19,835