FAC Explorer

Finding 572526 (2023-008)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2023
Accepted
2025-08-05
Audit: 363689
Organization: Churches United for the Homeless (MN)
Auditor: Brady Martz & Associates PC

AI Summary

  • Core Issue: The organization failed to document expenditures for federal reimbursements, leading to material noncompliance.
  • Impacted Requirements: Compliance with 2 CFR Part 200, Subpart E, which mandates proper documentation for reimbursed expenses.
  • Recommended Follow-Up: Update policies and procedures to ensure proper tracking of all expenditures for federal programs.

Finding Text

2023‐008 Department of Treasury Federal Financial Assistance Listing/ALN 21.027 COVID‐19 Coronavirus State and Local Fiscal Recovery Funds Allowable Costs and Allowable Activities Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria ‐ In accordance with 2 CFR Part 200, Subpart E requires that all expenses reimbursed under the Uniform Guidance be adequately documented. Condition ‐ We requested supporting schedules for all expenditures reimbursed under the federal program. For the expenditures reimbursed under the COVID-19 Fiscal Recovery program and the funding awarded for the Silver Linings building project. A listing of specific expenditures for these programs was not available for our testing procedures. Cause ‐ The Organization did not have proper procedures to ensure tracking of expenditure submitted for reimbursement. Effect ‐ The deficiency in internal controls resulted in material noncompliance to the Organization. Questioned Costs ‐ $239,614 Context/Sampling ‐ No sampling was performed as a listing of expenditures was not available for testing. Recommendation ‐ We recommend the Organization update its policies and procedures to allow for the proper tracking of all expenditures reimbursed under federal programs. Views of Responsible Officials ‐ Management is in agreement with the finding. Repeat Finding – This is a new finding.

Corrective Action Plan

2023‐008 Allowable Costs and Allowable Activities - COVID‐19 Coronavirus State and Local Fiscal Recovery Funds Person responsible for corrective action – Devlyn Brooks, Executive Director Corrective action planned – Management is working to establish better financial reporting to ensure that costs are appropriately allocated to grants for reimbursement and to establish adequate supporting documentation for all expenditures reimbursed with federal, state, or grant funding. Planned implementation date of corrective action – Calendar year 2025.

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 572520 2023-006
    Material Weakness
  • 572521 2023-006
    Material Weakness
  • 572522 2023-006
    Material Weakness
  • 572523 2023-007
    Significant Deficiency Repeat
  • 572524 2023-007
    Significant Deficiency Repeat
  • 572525 2023-007
    Significant Deficiency Repeat
  • 572527 2023-008
    Material Weakness
  • 572528 2023-008
    Material Weakness
  • 572529 2023-009
    Material Weakness Repeat
  • 572530 2023-009
    Material Weakness Repeat
  • 572531 2023-009
    Material Weakness Repeat
  • 572532 2023-010
    Material Weakness Repeat
  • 572533 2023-010
    Material Weakness Repeat
  • 572534 2023-010
    Material Weakness Repeat
  • 572535 2023-011
    Material Weakness
  • 572536 2023-011
    Material Weakness
  • 572537 2023-011
    Material Weakness
  • 1148962 2023-006
    Material Weakness
  • 1148963 2023-006
    Material Weakness
  • 1148964 2023-006
    Material Weakness
  • 1148965 2023-007
    Significant Deficiency Repeat
  • 1148966 2023-007
    Significant Deficiency Repeat
  • 1148967 2023-007
    Significant Deficiency Repeat
  • 1148968 2023-008
    Material Weakness
  • 1148969 2023-008
    Material Weakness
  • 1148970 2023-008
    Material Weakness
  • 1148971 2023-009
    Material Weakness Repeat
  • 1148972 2023-009
    Material Weakness Repeat
  • 1148973 2023-009
    Material Weakness Repeat
  • 1148974 2023-010
    Material Weakness Repeat
  • 1148975 2023-010
    Material Weakness Repeat
  • 1148976 2023-010
    Material Weakness Repeat
  • 1148977 2023-011
    Material Weakness
  • 1148978 2023-011
    Material Weakness
  • 1148979 2023-011
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $150,000
14.267 Continuum of Care Program $147,558
97.024 Emergency Food and Shelter National Board Program $19,875
14.218 Community Development Block Grants/entitlement Grants $12,590
14.231 Emergency Solutions Grant Program $8,299