FAC Explorer

Finding 8035 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-01-09
Audit: 10534
Organization: Habitat for Humanity Central Arizona (AZ)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance, specifically regarding the review of reports for federal awards.
  • Impacted Requirements: The organization is not meeting the standards set by Uniform Guidance, particularly 2 CFR 200.328(i) and 2 CFR 200.303(a), which require effective internal controls for reporting.
  • Recommended Follow-Up: Implement a formal review and approval process for performance and financial reports before submission to ensure compliance.

Finding Text

Type of Finding – Significant Deficiency in Internal Control Over Compliance Condition/Context – Internal control procedures over reporting requirements did not ensure compliance with federal awards. The reports prepared by the Director of Grant Compliance and Procurement are not reviewed and approved before being submitted. Criteria – In accordance with Uniform Guidance, 2 CFR 200.328(i) requires that an entity implements control over the performance and financial reporting. 2 CFR 200.303(a) requires an entity to establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the entity is managing the award in compliance with Federal statutes. Cause – Clerical oversight. Effect – Noncompliance with the Compliance Supplement and Uniform Guidance. Repeat Finding – No Questioned Costs – None Recommendation – The Organization implements a review and approval process over the performance and financial reports. View of Responsible Officials - There is no disagreement with the audit findings.

Corrective Action Plan

Type of Finding – Significant Deficiency in Internal Control Over Compliance Condition/Context – Internal Control procedures over reporting requirements did not ensure compliance with federal awards. The reports prepared by the Director of Grant Compliance and Procurement are not reviewed and approved before being submitted. Corrective Action Plan – Management has reviewed and revised procedures to review and approve all reports prepared in connection with federal awards prior to being submitted. Anticipated Completion Date and Person Responsible – As of December 1, 2023, all reports will be reviewed and approved prior to submission and all reports submitted prior to November 30, 2023, have been reviewed to detect if there were any material errors or adjustments needed.

Categories

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Reporting Significant Deficiency

Other Findings in this Audit

  • 8036 2023-001
    Significant Deficiency
  • 8037 2023-001
    Significant Deficiency
  • 584477 2023-001
    Significant Deficiency
  • 584478 2023-001
    Significant Deficiency
  • 584479 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.218 Emergency Home Repair Services $469,394
21.027 Workforce Development Job Seekers Initiative $270,742
21.027 Owner-Occupied Home Rehabilitation $200,000
14.239 Acquisition, Rehab, And/or Construction of Affordable Housing $180,000
14.218 Neighborhood Revitalization $149,082
14.239 New Construction, Renovation, & Homebuyer Assistance Land Acquisition, Infrastructure, New Construction, Renovations, & Resale $83,877
21.027 Aging in Place Program $64,663
14.239 Renovation, Resale, and Homebuyer Assistance $-287