FAC Explorer

Finding 35552 (2022-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-03-12
Audit: 30140
Organization: New London Homeless Hospitality Center, Inc. (CT)
Auditor: Hoyt Filippetti & Malaghan LLC

AI Summary

  • Core Issue: Cost allocations reported to grantors did not match the underlying accounting records.
  • Impacted Requirements: Costs must be based on a cost allocation plan and align with the general ledger.
  • Recommended Follow-Up: Implement controls to ensure all reports and reimbursement requests reconcile with accounting records.

Finding Text

2022-003 REPORTING ALLOWABLE/ALLOCABLE COSTS Grantors: U.S Department of Housing and Urban Development / U.S. Treasury Award Names: Emergency Solutions Grant / Emergency Rental Assistance Award Year: Various Award Numbers: Various CFDA Numbers: 14.231 / 21.023 Criteria: Costs reported and submitted for reimbursement should be based on a cost allocation plan and agree to the underlying accounting records. Condition: During our audit testing, we noted cost allocations included on submitted grant reports did not reconcile directly back to what was allocated in the underlying accounting records (general ledger). Cause: No individuals at the Center were periodically performing reconciling and other activities which would have served to ensure the cost allocation plan and underlying accounting records were in line and consistent with what was being reported to grantors. Effect: The amount of allocated costs reported and reimbursed by grantors could not be readily traced back to the underlying accounting records (general ledger). Questioned Costs: None noted. Recommendation: The Center should implement controls to ensure all reporting and requests for reimbursements submitted to grantors reconcile with the underlying accounting records as allocated. Management?s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.

Corrective Action Plan

Finding 2022-003 Reporting Allowable/Allocable Costs We have made considerable progress in fully documenting all costs by funding source in our accounting system. We have now fully implemented a detailed customer/job tracking capacity in QuickBooks and have created a coding system to match all income and costs associated with government contracts to specific customer/jobs. As of March 2023 this structure has been implemented for all costs with the exception of indirect costs. We will complete work on properly allocating indirect costs to customer/jobs (including securing board approval of the plan) by May 1, 2023. All improvements in accounting by customer/job will be implemented for the full fiscal year ended June 30, 2023. Each government contract is now reviewed on a monthly basis by both our Executive Director and our CFO to assure that appropriate recording of income and costs have been implemented.

Categories

Allowable Costs / Cost Principles Cash Management Reporting

Other Findings in this Audit

  • 35553 2022-004
    Material Weakness Repeat
  • 35554 2022-003
    Material Weakness Repeat
  • 35555 2022-004
    Material Weakness Repeat
  • 35556 2022-003
    Material Weakness Repeat
  • 35557 2022-004
    Material Weakness Repeat
  • 35558 2022-003
    Material Weakness Repeat
  • 35559 2022-004
    Material Weakness Repeat
  • 35560 2022-003
    Material Weakness Repeat
  • 35561 2022-004
    Material Weakness Repeat
  • 35562 2022-003
    Material Weakness Repeat
  • 35563 2022-004
    Material Weakness Repeat
  • 35564 2022-003
    Material Weakness Repeat
  • 35565 2022-004
    Material Weakness Repeat
  • 35566 2022-003
    Material Weakness
  • 35567 2022-004
    Material Weakness
  • 611994 2022-003
    Material Weakness Repeat
  • 611995 2022-004
    Material Weakness Repeat
  • 611996 2022-003
    Material Weakness Repeat
  • 611997 2022-004
    Material Weakness Repeat
  • 611998 2022-003
    Material Weakness Repeat
  • 611999 2022-004
    Material Weakness Repeat
  • 612000 2022-003
    Material Weakness Repeat
  • 612001 2022-004
    Material Weakness Repeat
  • 612002 2022-003
    Material Weakness Repeat
  • 612003 2022-004
    Material Weakness Repeat
  • 612004 2022-003
    Material Weakness Repeat
  • 612005 2022-004
    Material Weakness Repeat
  • 612006 2022-003
    Material Weakness Repeat
  • 612007 2022-004
    Material Weakness Repeat
  • 612008 2022-003
    Material Weakness
  • 612009 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
64.024 Va Homeless Providers Grant and Per Diem Program $233,761
14.231 Emergency Solutions Grant Program $195,216
21.023 Emergency Rental Assistance Program $134,000
21.026 Homeowner Assistance Fund $39,011
93.150 Projects for Assistance in Transition From Homelessness (path) $33,360
21.027 Coronavirus State and Local Fiscal Recovery Funds $31,097
14.267 Continuum of Care Program $26,812
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $18,075
97.024 Emergency Food and Shelter National Board Program $13,834
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $10,500
93.667 Social Services Block Grant $7,500
16.736 Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Stalking, Or Sexual Assault $1,175