Finding 44201 (2022-004)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-06-11
Audit: 47914
Organization: Simpson Housing Services, Inc. (MN)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Lack of formal documentation for secondary review of earmarking calculations in the Emergency Solutions Grants Program.
  • Impacted Requirements: Non-compliance with 2 CFR 200.303(a) regarding effective internal controls over federal awards.
  • Recommended Follow-up: Review and reinforce earmarking procedures with staff to ensure proper documentation and retention.

Finding Text

2022-004 Department of Housing and Urban Development Emergency Solutions Grants Program, Federal Financial Assistance Listing 14.231 Earmarking Significant Deficiency in Internal Control Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing 14.231 on the Schedule. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: For the two earmarking calculations, there was no formal documentation of a secondary review of the earmarking calculation. Cause: The Organization has designed internal controls over this area; however, the controls were not performed. Effect: The condition may affect the Organization?s ability to support compliance with earmarking requirements. Questioned Costs: None reported. Context/Sampling: Two earmarking calculations out of two were selected for testing for the program. Repeat Finding from Prior Year(s): Yes, Finding #2021-009 Recommendation: We recommend the procedures related to earmarking be reviewed with applicable program employees to ensure proper documentation and review is properly supported and the documentation is retained. Views of Responsible Officials: Management agrees with the finding.

Categories

Matching / Level of Effort / Earmarking Significant Deficiency

Other Findings in this Audit

  • 44198 2022-003
    Material Weakness Repeat
  • 44199 2022-004
    Significant Deficiency Repeat
  • 44200 2022-003
    Material Weakness Repeat
  • 620640 2022-003
    Material Weakness Repeat
  • 620641 2022-004
    Significant Deficiency Repeat
  • 620642 2022-003
    Material Weakness Repeat
  • 620643 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.231 Emergency Solutions Grant Program $455,930
14.267 Continuum of Care Program $55,716
97.024 Emergency Food and Shelter National Board Program $38,500