FAC Explorer

Finding 12189 (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.

Categories

Reporting HUD Housing Programs

Other Findings in this Audit

  • 12178 2022-003
    Material Weakness
  • 12179 2022-004
    Material Weakness
  • 12180 2022-005
    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
  • 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