FAC Explorer

Finding 32949 (2022-001)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-01-30
Audit: 33640
Organization: Sli Warren House, INC (MA)
Auditor: Cohnreznick

AI Summary

  • Core Issue: Internal controls for allowable costs were not consistently followed, leading to potential unapproved expenditures.
  • Impacted Requirements: The Corporation must have effective controls to ensure all costs are allowable before payment.
  • Recommended Follow-Up: Management should reinforce adherence to internal control procedures for invoice approvals.

Finding Text

Item #2022-1 ? Control over allowable costs Criteria: The Corporation must have controls in place for to ensure that all costs are allowable. Condition: Internal controls over allowable costs were not consistently followed. Cause: Personnel of the Corporation did not follow internal control procedures when paying certain invoices. Effect or Potential Effect: Failure to approve invoices could result in disbursements of cash made for unallowable expenditures. Questioned Costs: None noted Context: The discovery of the condition was made during sampling allowable cost transactions. During sampling procedures, it was noted that 12 out of 25 transactions did not have approval signoff on the invoices. One out of 25 invoices was not able to be provided to support expense. Recommendation: Management should ensure that internal controls over allowable costs are being followed. Reporting View of Responsible Official: Management of SLI Warren House Inc. agrees with the finding and the auditor's recommendations have been adopted.

Corrective Action Plan

CORRECTIVE ACTION PLAN January 30, 2023 U.S. Department of Housing and Urban Development: SLI ? Warren House, Inc. respectfully submits the following corrective action plan for the year ended May 31, 2022. Name and address of independent accounting firm: CohnReznick LLP South Shore Executive Park 10 Forbes Road Braintree, MA 02184 Audit period: June 1, 2021 ? May 31, 2022 The finding from the May 31, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. Federal Award Findings and Questioned Cost Material Weakness Item 2022-001 ? Control over allowable cost Issue: The Organization did not follow its internal controls over allowable costs on a consistent basis. Recommendation: Management should ensure that internal controls over allowable costs are being followed. Action Taken: Management agrees with this finding. Management provided additional training for new staff to ensure that internal controls were being followed and has implemented periodic reviews to ensure the continued compliance with internal controls. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Peter Noonan, at 781-937-3199. Sincerely, Peter Noonan President and CEO

Categories

Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 32950 2022-001
    Material Weakness
  • 609391 2022-001
    Material Weakness
  • 609392 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $192,859