FAC Explorer

Finding 26372 (2022-003)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-02-02
Audit: 18271
Organization: The Volusia/flagler County Coalition for the Homeless, Inc. (FL)
Auditor: James Moore & CO P L

AI Summary

  • Core Issue: There was an error in the grant expenditure submitted for reimbursement, leading to an overcharge.
  • Impacted Requirements: Internal controls must ensure that all claimed grant expenditures are supported by accurate documentation.
  • Recommended Follow-Up: Implement a formal review process for all grant expenditure calculations to ensure compliance with grant agreements.

Finding Text

2022-003 ? ALN 14.231 ? Incorrect Grant Expenditure ? Activities Allowable/Allowable Costs: Condition: We noted during our grant testing that the support provided did not agree to the grant expenditure submitted for reimbursement under the grant selected for testing and the grant was overcharged. Criteria: Internal control over financial reporting should include processes that ensure that all grant expenditures claimed are based on complete and accurate supporting documentation. Cause: The cause of the discrepancy was an error when entering the expenditure for payment not found by the review process. Effect: Misstatement of total grant expenditure. Recommendation: We recommend the Organization implement processes to perform and document a formal review of all grant expenditure calculations to ensure compliance with grant agreements.

Corrective Action Plan

Beginning immediately, the executive staff to include the Executive Director, HR/ Finance Coordinator and Grant and Compliance Coordinator for VFCCH, will review significant transactions monthly to ensure completeness and accuracy, including following up on outstanding grant receivables . The executive staff will also review all account balances at year-end to ensure proper cutoff and accrual-based reconciliations agree to the general ledger. The VFCCH Board Treasurer will review accounts receivables on a monthly basis and account balances at year end to ensure proper cutoff and that accrual-based reconciliations agree to the general ledger. VFCCH will engage an outside Non-Profit Management Consultant to review and prepare journal entries, reconcile all grant expenditures and complete the audit schedule as well as grant listings for the year.

Categories

Allowable Costs / Cost Principles Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 26373 2022-003
    Significant Deficiency
  • 26374 2022-003
    Significant Deficiency
  • 26375 2022-003
    Significant Deficiency
  • 602814 2022-003
    Significant Deficiency
  • 602815 2022-003
    Significant Deficiency
  • 602816 2022-003
    Significant Deficiency
  • 602817 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.231 Emergency Solutions Grant Program $199,700
14.231 Covid-19 Emergency Solutions Grant Program $88,766
14.218 Covid-19 Community Development Block Grants/entitlement Grants $51,142
93.558 Temporary Assistance for Needy Families $46,582
14.267 Continuum of Care Program $44,874