TOCKWOTTON HOME D/B/A TOCKWOTTON ON THE WATERFRONTNon-Profit

Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The Organization claimed expenses based on specifically identified COVID related expenses and general and administrative expenses. Condition: The Organization?s internal controls over compliance related to payroll were not effective. Eight out of sixty payroll expenditures tested were not properly calculated based on the criteria the Organization set. The expenditures were incurred prior to the Organization being notified of the same finding in the 2021 audit. Although some employees were paid less than the calculated amount, in the aggregate, the payroll amount was greater than the support amount but still fully allowed under the grant. Questioned costs: None Cause: Management oversight. Effect: The auditor noted no instances of noncompliance with the provisions related to eligible expenditures; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Recommendation: We recommend that management review all expenditures for accuracy. However, all expenses were fully allowed. Views of responsible officials and planned corrective actions: Management will review calculations and support for all payroll expenditures to ensure accuracy in future reporting.

Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Funds collected as a security deposit shall be kept in the name of the project, separate and apart from all other funds of the project in a trust account. The amount of this account shall at all times equal or exceed the aggregate of all outstanding obligations under that account. Funds must not be commingled with funds from any other projects. Condition: The Organization's internal controls over compliance related to security deposits were not effective. For two out of four quarter-ends tested, the balance in the Organization?s security deposit liability account exceeded the balance in the Organization?s security deposit cash account. Questioned costs: None Cause: Management oversight. Effect: The Organization did not have sufficient funds in their security deposit account to cover the security deposit liability. The Organization did have sufficient funds in other accounts to cover the liability. The security deposit account was also sufficient at December 31, 2022 to cover the liability. Recommendation: We recommend that management review the account monthly to ensure there is sufficient cash in the account to cover security deposit collections. Views of responsible officials and planned corrective actions: Management will review the security deposit account monthly to ensure proper coverage of the liability.

Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The Organization claimed expenses based on specifically identified COVID related expenses and general and administrative expenses. Condition: The Organization?s internal controls over compliance related to payroll were not effective. One payroll expenditure tested was not properly calculated based on the criteria the Organization set. The payroll amount was greater than the support amount but still fully allowed under the grant. Questioned costs: None Cause: Management oversight. Effect: The auditor noted no instances of noncompliance with the provisions related to eligible expenditures; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Recommendation: We recommend that management review all expenditures for accuracy. However, all expenses were fully allowed. Views of responsible officials and planned corrective actions: Management will review calculations and support for all payroll expenditures to ensure accuracy in future reporting.

Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The Organization claimed expenses based on specifically identified COVID related expenses and general and administrative expenses. Condition: The Organization?s internal controls over compliance related to payroll and cash disbursements were not effective. Budget to actual reports are sent monthly to department managers but there was no evidence of management?s review. Questioned costs: None Cause: Management oversight. Effect: The auditor noted no instances of noncompliance with the provisions related to eligible expenditures; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Recommendation: We recommend that management retain documentation of managers? review of budget to actual financials that are sent out. Views of responsible officials and planned corrective actions: Management will document their review of budget to actual reports to ensure accuracy in future reporting.

GSA_MIGRATION