Metro Area Continuum of Care for the HomelessNon-Profit

2021-002 Criteria: The program requires monthly and quarterly reports be submitted by the 15th day of the month following the close of the reporting period. Questioned Costs: None Condition: Specific reports requested were not able to be provided. Cause: The Organization had significant turnover during the year under audit resulting in various delays in reporting. Effect: The lack of filing of required reports could lead to questioned costs and potential issues with future grant funding. Recommendation: We recommend the Organization continue to implement additional control processes in order to ensure proper controls are in place and followed and all reporting is submitted timely. Organization Response: Management agrees with the finding.

2021-003 Criteria: Uniform Guidance requires that costs must be adequately documented and retained to demonstrate that only costs for allowable activities or allowable costs are charged to federal programs. Documentation should also support that expenditures are incurred during the period of availability and prior to submission for reimbursement. Questioned Costs: $300,000 Condition: Supporting documentation could not be provided for costs that were charged to the program to support the allowability of costs and activities and whether the charges were incurred during the appropriate period of performance. Out of the 60 transactions tested for this program, adequate supporting documentation could not be provided for 5 transactions. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to support costs charged to federal programs. Effect: Certain costs could not be supported as allowable, incurred during the appropriate period of performance, or incurred prior to submission for reimbursement were charged to the program. Recommendation: We recommend the Organization continue to follow the established internal controls and provide additional training to avoid additional errors. Organization Response: Management agrees with the finding.

Criteria: Cost principles in 2 CFR part 200, subpart E (Cost Principles), prescribe general criteria costs follow to be considered allowable under federal awards. The criteria state costs must be necessary and reasonable for the performance of the federal award, be allocable, and be adequately documented. Condition: Federal expenditures were not allocable and adequately documented. The client prepared schedule of federal expenditures of federal awards materially understated the amount of federal expenditures reimbursed by the grantor. Cause: The Organization?s provided a materially in-accurate schedule of federal expenditures of federal awards. The provided schedule of federal expenditures of federal awards required material re-reconciliation in able to be audited. Effect: The initial scheduled of federal expenditures of federal awards was materially in-accurate and was not reconcilable back to the Organization?s accounting system. Recommendation: We recommend the Organization work with the grantor to reconcile the requested grant reimbursements back to the accounting system. Organization Response: Management agrees with the finding.

Criteria: Uniform Guidance requires that costs must be adequately documented and retained to demonstrate that only costs for allowable activities or allowable costs are charged to federal programs. Documentation should also support that expenditures are incurred during the period of availability and prior to submission for reimbursement. Questioned Costs: $139,713 Condition: Supporting documentation could not be provided for costs that were charged to the program to support the allowability of costs and activities and whether the charges were incurred during the appropriate period of performance. Out of the 120 transactions tested for this program, adequate supporting documentation could not be provided for 21 transactions. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to support costs charged to federal programs. Effect: Certain costs could not be supported as allowable, incurred during the appropriate period of performance, or incurred prior to submission for reimbursement were charged to the program. Recommendation: We recommend the Organization continue to follow the established internal controls and provide additional training to avoid additional errors. Organization Response: Management agrees with the finding.

Criteria: While the reporting requirement is specific to the prime recipient for the associated grant, the Organization was required to provide financial progress reports to their grantor. Condition: Supporting documentation provided for the financial progress reports is materially in-accurate with the Organization?s accounting system. Cause: The Organization did not have adequate internal controls to ensure federal expenditures were allocable within their accounting system. Effect: Due to the in-accuracies in the Organization?s accounting system the required financial progress reports were not accurate when filed with the grantor agency. Recommendation: We recommend the Organization continue to follow the established internal controls and provide additional training to avoid additional errors. Organization Response: Management agrees with the finding.

Criteria: The Organization?s provides assistance to children, families and communities impacted by the COVID-19 pandemic requiring applicants to be a citizen of the State of Nebraska Condition: During our testing of enrollees, we found one instance of a missing enrollee application and therefore the determination of eligibility could not be made. Cause: The Organization?s internal controls failed and the application was not maintained. Effect: Further failure of internal controls could lead to significant, and material questioned costs. Recommendation: We recommend the Organization continue to follow the established internal controls and provide additional training to avoid additional errors. Organization Response: Management agrees with the finding.