FAC Explorer

Audit 12756

FY End
2023-06-30
Total Expended
$7.54M
Findings
2
Programs
8
Organization: The Open Door Network (CA)
Year: 2023 Accepted: 2024-01-22
Auditor: Daniells Phillips Vaughan & Bock

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9292 2023-001 - - L
585734 2023-001 - - L

Programs

ALN Program Spent Major Findings
93.558 Temporary Assistance for Needy Families $2.63M Yes 1
97.024 Emergency Food and Shelter National Board Program $312,937 - 0
16.575 Crime Victim Assistance $273,457 - 0
14.231 Emergency Solutions Grant Program $172,000 - 0
14.267 Continuum of Care Program $162,179 - 0
10.558 Child and Adult Care Food Program $86,553 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $43,234 - 0
93.575 Child Care and Development Block Grant $19,875 - 0

Contacts

Name Title Type
H15YASVQ33X6 Lauren Skidmore Auditee
6613229199 Patrick W. Paggi 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization uses the maximum indirect cost rate allowed under the various grant agreements. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of The Open Door Network (formerly known as Bethany Services, Inc. and Alliance Against Family Violence and Sexual Assault) (the Organization) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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: Loan Outstanding 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization uses the maximum indirect cost rate allowed under the various grant agreements. The U.S. Department of Housing and Urban Development loaned money to the City of Bakersfield totaling $189,225, who passed the money through to the Organization, which had a balance outstanding at June 30, 2023 as follows.

Finding Details

Finding 2023-001
Temporary Assistance for Needy Families, U.S. Department of Health and Human Services Federal Assistance Listing #93.558; Contract No. 337-2022 Condition: Two of the twelve monthly HSP 14 reports submitted to the granting agency did not agree with the underlying documentation used to prepare the reports. Criteria: In compliance with 2 CFR Part 200 subpart D Performance and Financial Monitoring and Reporting § 200.329 “Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report.” Cause: The error stems from the lack of internal controls over reporting including file retention, independent review and approval, and the organization and accuracy of supporting documentation. Effect: The auditor was unable to verify information within the monthly HSP 14 reports. Failure to report program relevant information properly may result in a reduction, loss or repayment of funding. Recommendation: Management should implement controls and procedures for maintaining supporting documentation for all reports submitted to granting agencies, which should include the implementation of controls over reporting that would prevent report submissions until all supporting documentation has been verified by an individual independent of the preparation and filing of the report(s). Management’s Response/Planned Corrective Action: We agree with the auditor’s comments, and the following action will be taken to improve the condition. Director Will Triplett and Manager Clarissa Lostaunau will implement a written policy included in the HSP Policy and Procedure Manual outlining accurate process and completion of the HSP 14 monthly reporting. The manual will include written steps on obtaining, verifying and storing all backup documentation for all data on the HSP 14. The team will also include a verification process before the submission of the report where two employees approve the monthly report as an internal control, one being from management. This will be completed by December 31, 2023 and led by Director of Transformational Services, Will Triplett.
Finding 2023-001
Temporary Assistance for Needy Families, U.S. Department of Health and Human Services Federal Assistance Listing #93.558; Contract No. 337-2022 Condition: Two of the twelve monthly HSP 14 reports submitted to the granting agency did not agree with the underlying documentation used to prepare the reports. Criteria: In compliance with 2 CFR Part 200 subpart D Performance and Financial Monitoring and Reporting § 200.329 “Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report.” Cause: The error stems from the lack of internal controls over reporting including file retention, independent review and approval, and the organization and accuracy of supporting documentation. Effect: The auditor was unable to verify information within the monthly HSP 14 reports. Failure to report program relevant information properly may result in a reduction, loss or repayment of funding. Recommendation: Management should implement controls and procedures for maintaining supporting documentation for all reports submitted to granting agencies, which should include the implementation of controls over reporting that would prevent report submissions until all supporting documentation has been verified by an individual independent of the preparation and filing of the report(s). Management’s Response/Planned Corrective Action: We agree with the auditor’s comments, and the following action will be taken to improve the condition. Director Will Triplett and Manager Clarissa Lostaunau will implement a written policy included in the HSP Policy and Procedure Manual outlining accurate process and completion of the HSP 14 monthly reporting. The manual will include written steps on obtaining, verifying and storing all backup documentation for all data on the HSP 14. The team will also include a verification process before the submission of the report where two employees approve the monthly report as an internal control, one being from management. This will be completed by December 31, 2023 and led by Director of Transformational Services, Will Triplett.