FAC Explorer

Finding 540332 (2024-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-28
Audit: 350213
Organization: People Incorporated of Virginia and Affiliates (VA)
Auditor: Wipfli LLP

AI Summary

  • Core Issue: Some federal grants were missed in the Schedule of Expenditures of Federal Awards due to internal control gaps.
  • Impacted Requirements: This oversight violates Uniform Guidance (2 CFR Part 200, section 510), which mandates complete reporting of federal awards.
  • Recommended Follow-Up: People Inc. should enhance internal controls and procedures to ensure all federal awards are accurately reported in future schedules.

Finding Text

Finding 2024 002: Preparation of the Schedule of Expenditures of Federal Awards Condition: During our audit, Wipfli LLP noted there were certain federal grants received from pass through entities that were inadvertently excluded from the Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance (2 CFR Part 200, section 510) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended. Cause: The internal controls of People Inc. did not identify all federal awards to be included in the Schedule of Expenditures of Federal Awards prior to the audit. Effect: As a result of the financial reporting matters identified in the condition paragraph, a significant deficiency exists in People Inc.'s internal control over financial reporting. Recommendation: We recommend People Inc. continue to implement procedures to provide sufficient internal control over the preparation of the Schedule of Expenditures of Federal Awards. View of Responsible Officials: PINC management acknowledges the inadvertent exclusion of some funds from the Schedule of Expenditures of Federal Awards due to a CFO transition and outdated accounting system, but emphasizes that no fraud or misuse occurred, with discrepancies promptly resolved, and is actively implementing a new accounting system to ensure future compliance and improve reporting accuracy.

Corrective Action Plan

Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards Condition: During the audit, Wipfli LLP noted there were certain federal grants received from pass-through entities that were inadvertently excluded from the Schedule of Expenditures of Federal Awards. Management’s Response PINC management acknowledges that some funds were inadvertently excluded from the Schedule of Expenditures of Federal Awards due to a combination of a recent CFO leadership transition and an outdated accounting system. However, these issues were not a result of fraud or misuse of funds, and the discrepancies were quickly addressed without any negative impact on the financial statements or audit timeline. The company is actively working to implement a new accounting system with an improved grants module to prevent similar issues in the future. These proactive steps reflect our commitment to compliance, financial accuracy, and continuous improvement in reporting processes. Contact Person Responsible for Corrective Action: Joshua Pevarnik, VP & CFO Anticipated Completion Date: Ongoing and by 6/30/2025

Categories

Reporting HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 540333 2024-002
    Significant Deficiency
  • 540334 2024-002
    Significant Deficiency
  • 540335 2024-002
    Significant Deficiency
  • 540336 2024-002
    Significant Deficiency
  • 540337 2024-002
    Significant Deficiency
  • 1116774 2024-002
    Significant Deficiency
  • 1116775 2024-002
    Significant Deficiency
  • 1116776 2024-002
    Significant Deficiency
  • 1116777 2024-002
    Significant Deficiency
  • 1116778 2024-002
    Significant Deficiency
  • 1116779 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $7.61M
10.766 Community Facilities Loans and Grants $1.31M
17.259 Wia Youth Activities $728,692
17.258 Wia Adult Program $571,533
14.871 Section 8 Housing Choice Vouchers $488,798
17.278 Wia Dislocated Worker Formula Grants $431,273
81.042 Weatherization Assistance for Low-Income Persons $376,149
93.568 Low-Income Home Energy Assistance $370,972
14.879 Mainstream Vouchers $317,464
10.558 Child and Adult Care Food Program $275,916
21.033 Cdfi Equitable Recovery Program $261,290
14.267 Continuum of Care Program $201,858
16.574 Victim Services Grant Program $198,797
93.592 Family Violence Prevention and Services/discretionary $139,796
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $119,514
14.239 Home Investment Partnerships Program $95,500
93.558 Temporary Assistance for Needy Families $78,192
14.169 Housing Counseling Assistance Program $56,392
93.647 Social Services Research and Demonstration $51,358
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $44,731
93.110 Maternal and Child Health Federal Consolidated Programs $39,859
14.231 Emergency Solutions Grant Program $37,926
93.590 Community-Based Child Abuse Prevention Grants $31,863
17.280 Workforce Investment Act (wia) Dislocated Worker National Reserve Demonstration Grants $28,800
16.575 Crime Victim Assistance $26,179
23.002 Appalachian Area Development $23,467
16.588 Violence Against Women Formula Grants $20,247
16.589 Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Assistance Program $8,059
14.218 Community Development Block Grants/entitlement Grants $8,000
59.046 Microloan Program $7,825
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $7,000
93.569 Community Services Block Grant $6,765
97.024 Emergency Food and Shelter National Board Program $2,000
16.017 Sexual Assault Services Formula Program $1,692
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $1,479