Finding 390143 (2023-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 301048
Organization: Nueva Esperanza, Inc. (PA)

AI Summary

  • Core Issue: FFRs for HC21-0011-021 were submitted late, missing the 30-day deadline for three consecutive quarters.
  • Impacted Requirements: Non-compliance with U.S. HUD reporting guidance under 2 CFR 200.327 regarding timely FFR submissions.
  • Recommended Follow-Up: Implement controls to ensure all award reporting requirements are identified and met on time.

Finding Text

Condition and Context On HC21-0011-021, the FFRs for the quarters ended December 31, 2022, March 31, 2023 and June 30, 2023 were not submitted within 30 days following the calendar quarter. The December 31, 2022 FFR was filed on August 28, 2023, March 31, 2023 FFR was filed on November 8, 2023 and June 30, 2023 FFR was filed on December 12, 2023. Criteria Per U.S. Department of Housing and Urban Development Reporting Guidance in connection with 2 CFR 200.327, for HC21-0011-021 the FFRs are due quarterly; within 30 days after end of the reporting period. Cause As a result of understaffing in the accounting department, Nueva Esperanza, Inc. was not able to meet Federal Financial Assistance Management Improvement Act (“FAMI”) timeliness requirements. Effect Nueva Esperanza, Inc. was not in compliance with Federal requirements relating to FAMI reporting. Recommendation We recommend that Nueva Esperanza, Inc. establishes controls to identify all award reporting requirements and file reports on a timely basis.

Corrective Action Plan

Management acknowledges the late filing of SF-425 for direct HUD grants. The delay is due to a delay from the sub awardees providing information timely to Housing Counseling for the fiscal year. Maria Iannarelli, Program Manager for Housing Counseling Assistance Program will continue to communicate with the sub-grantees to ensure reporting on a timely basis.

Categories

Reporting

Other Findings in this Audit

  • 390144 2023-001
    Significant Deficiency Repeat
  • 966585 2023-001
    Significant Deficiency Repeat
  • 966586 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $499,816
14.169 Housing Counseling Assistance Program $335,953
11.028 Connecting Minority Communities Pilot Program $173,395
84.031S Higher Education_institutional Aid $160,762
14.218 Community Development Block Grants/entitlement Grants $28,440