Finding 485094 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-08-26

AI Summary

  • Core Issue: There is a significant deficiency in internal controls for the Continuum of Care Program, specifically regarding the application of procedures for reasonable rent.
  • Impacted Requirements: The Organization did not consistently apply internal control procedures as required by 2 CFR Part 200.303, leading to potential errors in rent determinations.
  • Recommended Follow-Up: Ensure consistent application of internal controls across all relevant files to prevent unnoticed errors in rent assessments.

Finding Text

Identification of the federal program: 14.267 – Continuum of Care Program Significant deficiency in internal controls related to special tests and provisions Criteria: 2 CFR Part 200.303 establishes internal control requirements over federal awards that provides reasonable assurance the entity is managing the federal award in compliance with Federal Statutes. Condition: The Organization has established internal control procedures over special tests and provisions specifically as they apply to reasonable rent, however, the procedures were not applied to all items tested during the audit. Eight files were selected for testing, and one did not include evidence of internal control procedures being applied. Cause: The Organization had policies in procedures in place over special tests and provisions but they were not applied consistently. Effect: Errors could be made in determining whether a unit’s rent is reasonable, and without the consistent application of internal controls, these errors may go unnoticed resulting in a unit being rented whose fair market value rent is outside of the parameters set by the Department of Housing and Urban Development. Questioned Costs: None Recommendations: We recommend the Organization consistently apply internal controls. Views of responsible officials: We agree we need to apply our internal controls as outlined in our policies and procedures consistently. Seven of the eight files tested did follow our policies and procedures. During this fiscal year, we were negatively impacted by the effects of COVID and experienced program manager turnover. Program managers are following these processes on a consistent basis moving forward.

Corrective Action Plan

The Director of Finance and Accounting Manager will work with the Grants and Contract Accountant to coordinate grant kickoff meetings with Program Directors and Managers to ensure they have procedures in place to meet the requirements for the agreement. These meetings will be held in August and September.

Categories

Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 485095 2022-003
    Significant Deficiency
  • 485096 2022-003
    Significant Deficiency
  • 1061536 2022-002
    Significant Deficiency
  • 1061537 2022-003
    Significant Deficiency
  • 1061538 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $644,355
14.267 Continuum of Care Program $338,403
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $285,029
21.023 Emergency Rental Assistance Program $257,615
16.575 Crime Victim Assistance $158,868
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $108,593
14.218 Community Development Block Grants/entitlement Grants $59,186
93.136 Injury Prevention and Control Research and State and Community Based Programs $50,600
93.268 Immunization Cooperative Agreements $49,533
93.569 Community Services Block Grant $48,805
84.287 Twenty-First Century Community Learning Centers $22,437
16.588 Violence Against Women Formula Grants $12,493
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $8,021
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $6,254
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $5,584
14.231 Violence Against Women Formula Grants $5,429
93.052 National Family Caregiver Support, Title Iii, Part E $3,290
93.053 Nutrition Services Incentive Program $2,573
21.027 Coronavirus State and Local Fiscal Recovery Funds $525