FAC Explorer

Finding 12175 (2022-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-02-20
Audit: 16282
Organization: Refugee Empowerment Center (NE)
Auditor: Bland and Associates PC

AI Summary

  • Core Issue: Supporting documentation for 4 out of 60 transactions was missing, raising concerns about the allowability of costs charged to federal programs.
  • Impacted Requirements: Uniform Guidance mandates that all costs must be documented and incurred within the funding period to qualify for reimbursement.
  • Recommended Follow-Up: Enhance internal controls and provide training on documentation practices; management is implementing new software to improve tracking and receipt management.

Finding Text

Criteria: Uniform Guidance requires that costs must be adequately documented and retained to demonstrate that only costs for allowable activities or allowable costs are charged to federal programs. Documentation should also support that expenditures are incurred during the period of availability and prior to submission for reimbursement. Questioned Costs: None Condition: Supporting documentation could not be provided for costs that were charged to the program to support the allowability of costs and activities. Out of the 60 transactions tested for this program, adequate supporting documentation could not be provided for 4 transactions. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to support costs charged to federal programs. Effect: Certain costs could not be supported as allowable that were charged to the program potentially affecting future grant funding. Recommendation: We recommend the Organization continue to follow the established internal controls and provide additional training to avoid future errors. Organization Response: Management agrees with the finding. The Organization is implementing new software for tracking client expense, which has functionality to import copies of credit card receipts and check requests into each client?s record. We have emphasized to case managers the importance of keeping receipts.

Corrective Action Plan

Corrective Action Plan: The organization is implementing new software for tracking client expense, which has functionality to import copies of credit card receipts and check requests into each client?s record. We have emphasized to case managers the importance of keeping receipts. Reasonable completion date: June 1, 2023 Responsible Party: Tanya DeWolf, Director of Refugee Services

Categories

Allowable Costs / Cost Principles Cash Management HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 12174 2022-001
    Material Weakness
  • 12176 2022-001
    Material Weakness
  • 12177 2022-002
    Significant Deficiency
  • 588616 2022-001
    Material Weakness
  • 588617 2022-002
    Significant Deficiency
  • 588618 2022-001
    Material Weakness
  • 588619 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.576 Afghan Placement and Assistance Program (apa) $1.32M
93.567 Refugee and Entrant Assistance Voluntary Agency Programs (matching Grant (mg) Program) $570,080
93.576 Refugee and Entrant Assistance Discretionary Grants (preferred Communities (pc)) $376,026
19.510 U.s. Refugee Admissions Program (r&p) $309,437
93.566 Refugee and Entrant Assistance State Administered Programs (nhhs-Rss) $304,174