Finding 36029 (2022-000)

Material Weakness
Requirement
ABL
Questioned Costs
-
Year
2022
Accepted
2023-05-21
Audit: 36510
Organization: The House of Hope, Inc. (FL)
Auditor: Keefe McCullough

AI Summary

  • Core Issue: Significant delays in locating supporting documentation for Covid-19 Provider Relief Funds.
  • Impacted Requirements: Federal guidelines require retention of records for three years post-final expenditure report submission.
  • Recommended Follow-Up: Establish a centralized filing system and a clear documentation retention policy to improve compliance and efficiency.

Finding Text

Federal Program: Covid-19 Provider Relief Funds - 93.498 Criteria: Federal award guidelines state that financial records, supporting documents, statistical records and all non-federal entity records related to a federal award must be retained for a period of three years from the date of submission of the final expenditure report. Condition: As a result of our audit procedures, we noted there were significant delays in locating supporting documentation for our selections. In our sample of 25 cash receipts, there were two instances where supporting documentation provided was incomplete. Cause: The Organization does not have a centralized filing system or documentation retention policy. Effect: Audit procedures were delayed.

Corrective Action Plan

2022-01 Covid-19 Provider Relief Funds - 93.498 Document Retention Policy Criteria: Federal award guidelines state that financial records, supporting documents, statistical records and all non-federal entity records related to a federal award must be retained for a period of three years from the date of submission of the final expenditure report. Condition: As a result of our audit procedures, we noted there were significant delays in locating supporting documentation for our selections. In our sample of 25 cash receipts, there were two instances where supporting documentation provided was incomplete. Cause: The Organization did not have a centralized filing system or documentation retention policy. Effect: Audit procedures were delayed. Recommendation: We recommend that the Organization develop a formal record retention policy (a minimum of three years) sufficient to meet audit requirements. In addition, we recommend that management develop a record retention schedule to ensure that staff are aware of where electronic records are stored in the event of turnover within key functions. Management Response: The Organization will continue to strengthen our internal controls by developing a written document retention policy and central filing system for financial records.

Categories

Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 36027 2022-001
    Material Weakness Repeat
  • 36028 2022-001
    Material Weakness
  • 612469 2022-001
    Material Weakness Repeat
  • 612470 2022-001
    Material Weakness
  • 612471 2022-000
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.959 Block Grants for Prevention and Treatment of Substance Abuse $781,327
93.498 Covid-19 Provider Relief Fund $537,102
93.788 Opioid Str $90,170
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $46,721