FAC Explorer

Audit 15151

FY End
2023-06-30
Total Expended
$2.22M
Findings
4
Programs
4
Organization: Horizons for Homeless Children (MA)
Year: 2023 Accepted: 2024-02-01
Auditor: Daniel Dennis & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
11294 2023-001 Significant Deficiency - E
11295 2023-001 Significant Deficiency - E
587736 2023-001 Significant Deficiency - E
587737 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
93.575 Child Care and Development Block Grant $1.83M Yes 1
10.555 National School Lunch Program $244,007 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $144,664 Yes 1
10.558 Child and Adult Care Food Program $10,185 - 0

Contacts

Name Title Type
Z6LQKP6DCE36 Sharon Fuller Auditee
6175535402 Andrew Bacigalupo 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. The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal grant activity of Horizons for Homeless Children (the Agency) 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 Agency, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Agency.
Title: 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. The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance (1) 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. (2) The Agency has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Subrecipients 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. The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance There were no federal awards passed through to subrecipients by the Agency during fiscal year 2023.
Title: Pass-through Funding from the Commonwealth of Massachusetts Department of Early Education and Care 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. The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance The Agency received funding under the Temporary Assistance Program for Needy Families (TANF) (CFDA 93.558) through the Commonwealth of Massachusetts Department of Early Education and Care (the Commonwealth). The Commonwealth has transferred the TANF funds into the Child Care and Development Fund Cluster (CCDF) as allowed by the TANF program. The Uniform Guidance requires the transferred TANF funds to be reported as CCDF expenditures. The Agency has reported $1,626,526 in expenditures of TANF funds as CCDF expenditures under CFDA 93.575 on the Schedule.

Finding Details

Finding 2023-001
2023-001 - Eligibility Federal Agency: U.S. Department of Health and Human Services Federal Program: 93.596 and 93.575 Child Care Development Fund (CCDF) Cluster Condition: As part of our testing of Horizons for Homeless Children’s (the Organization) internal control over compliance for eligibility, we noted that the Organization did not follow their internal controls regarding review and approval of the Child Care Subsidy Application and Fee Agreement for one out of twenty-five applications reviewed. Criteria: 2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Cause: The Organization did not properly follow its internal controls. Effect: The Child Care Subsidy Application and Fee Agreement was not properly reviewed and approved. Context: One out of twenty-five applications sampled. Our sample was not a statistically valid sample. This was not a repeat finding from a prior period. Questioned Costs: None Recommendations: Management should ensure that the Organization’s internal controls in place are properly followed. Management Response: Management agrees with the finding and will implement additional review procedures during fiscal year 2024 to ensure the Child Care Subsidy Application and Fee Agreements are properly reviewed and approved.
Finding 2023-001
2023-001 - Eligibility Federal Agency: U.S. Department of Health and Human Services Federal Program: 93.596 and 93.575 Child Care Development Fund (CCDF) Cluster Condition: As part of our testing of Horizons for Homeless Children’s (the Organization) internal control over compliance for eligibility, we noted that the Organization did not follow their internal controls regarding review and approval of the Child Care Subsidy Application and Fee Agreement for one out of twenty-five applications reviewed. Criteria: 2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Cause: The Organization did not properly follow its internal controls. Effect: The Child Care Subsidy Application and Fee Agreement was not properly reviewed and approved. Context: One out of twenty-five applications sampled. Our sample was not a statistically valid sample. This was not a repeat finding from a prior period. Questioned Costs: None Recommendations: Management should ensure that the Organization’s internal controls in place are properly followed. Management Response: Management agrees with the finding and will implement additional review procedures during fiscal year 2024 to ensure the Child Care Subsidy Application and Fee Agreements are properly reviewed and approved.
Finding 2023-001
2023-001 - Eligibility Federal Agency: U.S. Department of Health and Human Services Federal Program: 93.596 and 93.575 Child Care Development Fund (CCDF) Cluster Condition: As part of our testing of Horizons for Homeless Children’s (the Organization) internal control over compliance for eligibility, we noted that the Organization did not follow their internal controls regarding review and approval of the Child Care Subsidy Application and Fee Agreement for one out of twenty-five applications reviewed. Criteria: 2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Cause: The Organization did not properly follow its internal controls. Effect: The Child Care Subsidy Application and Fee Agreement was not properly reviewed and approved. Context: One out of twenty-five applications sampled. Our sample was not a statistically valid sample. This was not a repeat finding from a prior period. Questioned Costs: None Recommendations: Management should ensure that the Organization’s internal controls in place are properly followed. Management Response: Management agrees with the finding and will implement additional review procedures during fiscal year 2024 to ensure the Child Care Subsidy Application and Fee Agreements are properly reviewed and approved.
Finding 2023-001
2023-001 - Eligibility Federal Agency: U.S. Department of Health and Human Services Federal Program: 93.596 and 93.575 Child Care Development Fund (CCDF) Cluster Condition: As part of our testing of Horizons for Homeless Children’s (the Organization) internal control over compliance for eligibility, we noted that the Organization did not follow their internal controls regarding review and approval of the Child Care Subsidy Application and Fee Agreement for one out of twenty-five applications reviewed. Criteria: 2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Cause: The Organization did not properly follow its internal controls. Effect: The Child Care Subsidy Application and Fee Agreement was not properly reviewed and approved. Context: One out of twenty-five applications sampled. Our sample was not a statistically valid sample. This was not a repeat finding from a prior period. Questioned Costs: None Recommendations: Management should ensure that the Organization’s internal controls in place are properly followed. Management Response: Management agrees with the finding and will implement additional review procedures during fiscal year 2024 to ensure the Child Care Subsidy Application and Fee Agreements are properly reviewed and approved.