FAC Explorer

Finding 12180 (2022-005)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-12-19
Audit: 16294
Organization: Rural Resources Community Action (WA)
Auditor: Aiken & Sanders INC Ps

AI Summary

  • Core Issue: The Organization failed to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) for the fiscal year ended February 28, 2022, missing key items like commodities and Section 8 Housing Vouchers.
  • Impacted Requirements: This oversight violates the Uniform Guidance, which mandates a comprehensive SEFA for compliance testing and accurate financial reporting.
  • Recommended Follow-Up: Provide targeted training for accounting staff on SEFA preparation and establish a process to identify and track all federal funding sources for inclusion in future SEFAs.

Finding Text

2022-005 PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AL Number and Title: 21.023 Treasury Rent Assistance Program Federal Grantor Name: United States Department of the Treasury Pass Through Entity: Department of Commerce AL Number and Title: 21.027 Eviction Rental Assistance Program & Emergency Food Assistance Program Federal Grantor Name: United States Department of the Treasury Pass Through Entity: Department of Commerce & Department of Agriculture AL Number and Title: 93.600 Head Start and Early Head Start Federal Grantor Name: United States Department of Health and Human Services Pass Through Entity: N/A AL Number and Title: 14.871 Section 8 Housing Choice Vouchers Federal Grantor Name: United States Department of Housing & Urban Development Pass Through Entity: Spokane Housing Authority Criteria: The Uniform Guidance requires auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee?s financial statements. Condition: The Organization did not prepare a complete and accurate SEFA for the fiscal year ended February 28, 2022, by not including commodities and Section 8 Housing Vouchers. Effect: An incomplete and inaccurate SEFA introduced the risk of the inclusion and incorrect programs for compliance testing and material errors in the year-end audit report. Cause: The Organization accounting personnel did not have adequate training and experience to properly capture and report federal expenditures in accordance with Uniform Guidance. Additional, as noted in finding 2022-001, lack of a regular review and reconciliation of grant arrangements and contracts resulted in material misstatements of grant revenue, accounts receivable, and deferred revenue. Recommendation: We recommend that the Organization provide specific training to accounting personnel in the preparation and reporting requirements for the SEFA. The Organization should also implement a process to identify all federal sources of funds, when awarded, and track, report and include these awards in the year-end SEFA. Questioned Costs for Finding 2022-005: No questioned costs were noted for this finding.

Corrective Action Plan

Rural Resources Community Action agrees with the findings reported and has identified corrective action to rectify the findings. The Organization CFO understands the function and necessity of preparing a complete and accurate SEFA. The organization will secure the Grants Management module to use with the accounting software to enhance the ability to efficiently generate the SEFA in a timely manner for the annual audit. The CFO will be reviewing financial records to make sure all cash and noncash federal grants are included on the SEFA.

Categories

Reporting HUD Housing Programs

Other Findings in this Audit

  • 12178 2022-003
    Material Weakness
  • 12179 2022-004
    Material Weakness
  • 12181 2022-003
    Material Weakness
  • 12182 2022-004
    Material Weakness
  • 12183 2022-005
    Material Weakness
  • 12184 2022-003
    Material Weakness
  • 12185 2022-004
    Material Weakness
  • 12186 2022-005
    Material Weakness
  • 12187 2022-003
    Material Weakness
  • 12188 2022-004
    Material Weakness
  • 12189 2022-005
    Material Weakness
  • 12190 2022-003
    Material Weakness
  • 12191 2022-004
    Material Weakness
  • 12192 2022-005
    Material Weakness
  • 588620 2022-003
    Material Weakness
  • 588621 2022-004
    Material Weakness
  • 588622 2022-005
    Material Weakness
  • 588623 2022-003
    Material Weakness
  • 588624 2022-004
    Material Weakness
  • 588625 2022-005
    Material Weakness
  • 588626 2022-003
    Material Weakness
  • 588627 2022-004
    Material Weakness
  • 588628 2022-005
    Material Weakness
  • 588629 2022-003
    Material Weakness
  • 588630 2022-004
    Material Weakness
  • 588631 2022-005
    Material Weakness
  • 588632 2022-003
    Material Weakness
  • 588633 2022-004
    Material Weakness
  • 588634 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.71M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.61M
93.568 Low-Income Home Energy Assistance $1.59M
10.218 Usda Loan $1.51M
21.023 Emergency Rental Assistance Program $1.16M
93.778 Medical Assistance Program $1.05M
17.278 Wia Dislocated Worker Formula Grants $966,353
14.231 Emergency Solutions Grant Program $771,302
21.019 Coronavirus Relief Fund $735,168
17.258 Wia Adult Program $676,606
17.259 Wia Youth Activities $631,661
10.569 Emergency Food Assistance Program (food Commodities) $569,137
10.766 Community Facilities Loans and Grants $438,505
16.575 Crime Victim Assistance $437,223
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $395,351
10.415 Rural Rental Housing Loans $393,182
10.565 Commodity Supplemental Food Program $216,583
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $201,647
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $178,665
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $124,665
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $107,593
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $94,497
81.042 Weatherization Assistance for Low-Income Persons $90,273
14.169 Housing Counseling Assistance Program $87,685
93.569 Community Services Block Grant $83,996
16.588 Violence Against Women Formula Grants $76,832
10.568 Emergency Food Assistance Program (administrative Costs) $69,052
93.052 National Family Caregiver Support, Title Iii, Part E $65,990
93.136 Injury Prevention and Control Research and State and Community Based Programs $62,558
17.277 Workforce Investment Act (wia) National Emergency Grants $57,132
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $44,195
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $43,340
10.558 Child and Adult Care Food Program $36,835
93.959 Block Grants for Prevention and Treatment of Substance Abuse $25,238
64.035 Veterans Transportation Program $24,384
93.600 Head Start $16,431
93.558 Temporary Assistance for Needy Families $10,753
81.999 Bpa $10,705
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $1,356