Finding 36359 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-06
Audit: 32547
Organization: Portland Housing Center (OR)

AI Summary

  • Core Issue: Reports for the Community Development Financial Institutions program were submitted late and could not be located.
  • Impacted Requirements: Annual financial and performance reports must be prepared, reviewed, and submitted on time to funding agencies.
  • Recommended Follow-Up: Implement controls for monitoring report completion, ensure reviews by personnel other than the preparer, and maintain retrievable copies of submitted reports.

Finding Text

Finding # 2022-001 Type: : Significant Deficiency over reporting CFDA Number: U.S. Department of Treasury 21.024 Community Development Financial Institutions Rapid Response Program Criteria/Requirement: Annual financial condition reports and performance reports should be prepared, reviewed, and timely submitted to funding agencies. Condition/Context: The three sample selections could not be located. Financial statement audit report was due by December 31, 2021. The report was submitted on July 6, 2022, subsequent to the deadline. Cause: There are no controls in place to monitor completion and document review and submission of the required reports. Effect: Reports may be inaccurate and not submitted timely to agencies. Questioned Costs: None. Recommendation: Proper controls and segregation of duties should be implemented to monitor timely completion and submission of required reports. In addition, there should be a documented review by appropriate personnel of the report data (someone other than the preparer), before submission. Copies of submitted reports should be maintained in a retrievable manner. Management?s Response: Management will implement a supervisory review and approval of all reports as well as develop a process for documenting the review of reports.

Corrective Action Plan

Contact Person of Portland Housing Center: Mark Palardy Name and Address of Independent Public Accounting Firm: McDonald Jacobs, P.C. 520 SW Yamhill, Suite 500 Portland, OR 97204 Audit Period: July 1, 2021 through June 30, 2022. The findings from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedules. Finding # 2022-001: Reporting Type: Federal Awards, Significant Deficiency, Immaterial Noncompliance CFDA: 21.024 Agency U.S. Department of Treasury Significant Deficiency and Noncompliance The three report selections could not be located. In addition, the financial statement audit report was due by December 31, 2021 and was submitted on July 6, 2022, subsequent to the deadline. Recommendation: Proper controls and segregation of duties should be implemented to monitor timely completion and submission of required reports. In addition, there should be a documented review by appropriate personnel of the report data (someone other than the preparer), before submission. Copies of submitted reports should be maintained in a retrievable manner. Corrective Action: We will develop a process to ensure reports are reviewed by a supervisory personnel as well as documentation retained showing review. Completion Date: March 31, 2023

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 612801 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.00M
21.000 Neighborworks System Program $432,000
21.020 Community Development Financial Institutions Program $324,043
14.218 Community Development Block Grants/entitlement Grants $161,608
14.169 Housing Counseling Assistance Program $63,000