FAC Explorer

Finding 46081 (2022-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-03-05
Audit: 40956
Organization: Lafayette Transitional Housing Center, Inc. (IN)
Auditor: Huth Thompson LLP

AI Summary

  • Core Issue: Salary expenses were not allocated correctly to the major program due to errors in employee hour reporting.
  • Impacted Requirements: The Organization must review timesheets and payroll entries to ensure accurate salary allocation to grants.
  • Recommended Follow-Up: Implement an additional verification step in the time reporting process to confirm hours match the timesheets.

Finding Text

2022-002: PAYROLL ALLOCATION Condition: The Organization did not correctly allocate salary expenses to the major program. Criteria: The Organization should carefully review timesheets and payroll journal entries to ensure that salaries are properly allocated. Cause: The Organization did not correctly allocate employee hours according to the timesheets. Effect: Salary expenses were not properly claimed on the correct grant. Questioned Costs: N/A Perspective Information: This issue is not considered to be prevalent as no other issues were noted in the items tested. Identification of Repeat Findings: N/A Context: A sample of 42 payroll allocations was selected from a possible 259 payroll allocations. The test found that one was not properly allocated to the applicable grant. Recommendation: The Organization should ensure that it has properly allocated salaries charged to grants. View of Responsible Officials and Planned Corrective Action: We?ve added an additional step to the detailed time report from APS that will verify the hours documented on the timesheets.

Corrective Action Plan

CORRECTIVE ACTION PLAN February 2, 2023 U.S. Department of Housing and Urban Development (HUD)--Continuum of Care Program Lafayette Transitional Housing respectfully submits the following corrective action plan for the year ended September 30, 2022: Name and address of Independent Public Accounting Firm: Huth Thompson LLP P0 Box 970 Lafayette, IN 47902-0970 Audit period: September 30, 2022 The findings from the September 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS--FINANCIAL STATEMENT AUDIT (MATERIAL WEAKNESS) 2022-001: PREPARATION OF FINANCIAL STATEMENTS Recommendation: The Organization should follow established controls to ensure proper recognition of restricted net asset sources. Action Taken: LTHC acknowledges discrepancies in recognition of restricted net asset sources. Recommendations in the Corrective Action Plan dated February 2, 2023 were adopted and phased in beginning February 2023. We will continue to use a separate spreadsheet to track all restricted funds, which is reviewed monthly by Executive Staff. FINDINGS AND QUESTIONED COSTS-- MAJOR FEDERAL AWARD PROGRAMS AUDIT U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)?Continuum of Care Program 14.267: REPORTING (SIGNIFICANT DEFICIENCY) Recommendation: The Organization should ensure that it has properly allocated salaries charged to grants. Corrective Action: LTHC acknowledges discrepancies in recognition of salary allocation. Recommendations in the Corrective Action Plan dated February 2, 2023 were adopted and phased in beginning February 2023. We have added an additional step to the detailed time report from APS that will verify the hours documented on the timesheets. All Corrective Actions have already been implemented. If the Department of Housing and Urban Development has questions regarding this plan, please call Jennifer Layton, President and CEO at 765-423-4880. Sincerely, Jennifer Layton President/Chief Executive Officer

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 46082 2022-002
    Significant Deficiency
  • 46083 2022-002
    Significant Deficiency
  • 46084 2022-002
    Significant Deficiency
  • 622523 2022-002
    Significant Deficiency
  • 622524 2022-002
    Significant Deficiency
  • 622525 2022-002
    Significant Deficiency
  • 622526 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
64.033 Va Supportive Services for Veteran Families Program $325,601
14.871 Section 8 Housing Choice Vouchers $285,741
14.218 Community Development Block Grants/entitlement Grants $103,981
93.310 Trans-Nih Research Support $50,000
14.231 Emergency Solutions Grant Program $45,557
97.024 Emergency Food and Shelter National Board Program $17,008
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $6,552
14.267 Continuum of Care Program $4,121