Audit 11212

FY End
2022-12-31
Total Expended
$823,627
Findings
2
Programs
1
Year: 2022 Accepted: 2024-01-12

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
8372 2022-001 Significant Deficiency - I
584814 2022-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
93.788 Opioid Str $823,627 Yes 1

Contacts

Name Title Type
KLJKPGWN77Z9 Michelle Elswick Auditee
8596194397 Kristin Taylor Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Voices of Hope - Lexington, Inc. (the Organization) under the Opioid State Targeted Response Program for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Organization.
Title: 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The Organization has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance

Finding Details

Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: During our testing of 60 grant expenditures, we were not able to view documentation that vendors had been reviewed to verify they were not suspended or debarred from the federal government. After additional analysis, it was deemed all vendors were permitted and resulted in no questioned costs. Cause: Internal controls over suspension and debarment are inadequate. Effect: Grant funds could be used to pay vendors who are suspended or debarred. Recommendation: We recommend the Organization established controls over suspension and debarment, including comparing the suspended and debarred vendors to the listing at sam.gov. View of Responsible Officials: Management agrees with this finding and internal controls are being implemented to address this issue.
Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: During our testing of 60 grant expenditures, we were not able to view documentation that vendors had been reviewed to verify they were not suspended or debarred from the federal government. After additional analysis, it was deemed all vendors were permitted and resulted in no questioned costs. Cause: Internal controls over suspension and debarment are inadequate. Effect: Grant funds could be used to pay vendors who are suspended or debarred. Recommendation: We recommend the Organization established controls over suspension and debarment, including comparing the suspended and debarred vendors to the listing at sam.gov. View of Responsible Officials: Management agrees with this finding and internal controls are being implemented to address this issue.