FAC Explorer

Audit 1817

FY End
2022-06-30
Total Expended
$7.57M
Findings
4
Programs
2
Organization: Baltimore Civic Fund (MD)
Year: 2022 Accepted: 2023-10-31
Auditor: Rubino & Company Chartered

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
970 2022-001 Significant Deficiency Yes L
971 2022-001 Significant Deficiency Yes L
577412 2022-001 Significant Deficiency Yes L
577413 2022-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.95M Yes 1
21.019 Coronavirus Relief Fund $891,094 - 0

Contacts

Name Title Type
N4U8RK1C4BW4 Hyesook Chung Auditee
4435406113 Dawit S Negari Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards 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: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Baltimore Civic Fund, Inc. (the Organization) under programs of the federal government for the year ended June 30, 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). The principal estimates and assumptions used in the preparation of the accompanying schedule relate to cost allowability and allocability (Note B). Actual results could differ from those estimates.
Title: Federal Audits Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards 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: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The allowability of certain costs under government grants is subject to audit by the contracting agency. Certain indirect costs charged to grants are subject to revisions based on government audits of those costs. Management believes that contract costs are consistent with applicable government cost principles, and that costs subsequently disallowed, if any, upon audit by the government would not be material.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards 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: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the schedule of expenditures of federal awards 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.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards 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: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-001
2022 – 001: Timely Financial Reporting and SF-SAC Submission Criteria – Filing of the SF-SAC Submission timely represents a functioning financial system. Condition and Context – Complete financial results were not available on a timely basis to begin the audit prior to the due date of the SF-SAC and material misstatements were made during the audit that management has accepted and corrected. The misstatements include recording of contributions and grants in the proper accounting periods. Effect – Complete and accurate financial results were not available on a timely basis to begin the audit prior to the due date of the SF-SAC. Recommendation – Procedures need to be developed for the following:  Management should implement procedures to complete and reconcile all financial information within a reasonable time after year end.  Management should implement a system to track the due date of the SF-SAC to ensure timely filing. Corrective Action Planed - Baltimore Civic Fund & Goldin Group acknowledge the finding on the Civic Fund’s single audit. This finding arose because the audit filing to the federal clearinghouse occurred after its deadline of nine months beyond the fiscal year end. The root causes of the late filing were delays in finalizing the FY20 audit during the COVID pandemic, transitions in accounting systems, and lack of clear guidance. Baltimore Civic Fund engaged a new auditor for its FY20 audit and transitioned accounting systems late in FY20, delaying the finalization of the FY20 audit to April 2022. By that time, the Civic Fund had new finance staff and was planning another transition to a different accounting system. In addition, the Civic Fund’s leadership did not have clear guidance on whether a single audit was required as the received federal funds were passed through as subawards. When transitioning to the current accounting system was completed in fall 2022, the finance team prioritized cleaning and closing the FY21 books. Baltimore Civic Fund and Goldin Group worked together to ensure the FY21 2 audit was completed in Spring 2023 shortly after the FY21 books were cleaned and closed. When the FY21 audit was completed, the 3/31/2023 single audit deadline for FY22 passed. Baltimore Civic Fund and Goldin Group worked together to close the FY22 books shortly after the FY21 audit was completed to ensure the FY22 audit complete by Summer 2023.
Finding 2022-001
2022 – 001: Timely Financial Reporting and SF-SAC Submission Criteria – Filing of the SF-SAC Submission timely represents a functioning financial system. Condition and Context – Complete financial results were not available on a timely basis to begin the audit prior to the due date of the SF-SAC and material misstatements were made during the audit that management has accepted and corrected. The misstatements include recording of contributions and grants in the proper accounting periods. Effect – Complete and accurate financial results were not available on a timely basis to begin the audit prior to the due date of the SF-SAC. Recommendation – Procedures need to be developed for the following:  Management should implement procedures to complete and reconcile all financial information within a reasonable time after year end.  Management should implement a system to track the due date of the SF-SAC to ensure timely filing. Corrective Action Planed - Baltimore Civic Fund & Goldin Group acknowledge the finding on the Civic Fund’s single audit. This finding arose because the audit filing to the federal clearinghouse occurred after its deadline of nine months beyond the fiscal year end. The root causes of the late filing were delays in finalizing the FY20 audit during the COVID pandemic, transitions in accounting systems, and lack of clear guidance. Baltimore Civic Fund engaged a new auditor for its FY20 audit and transitioned accounting systems late in FY20, delaying the finalization of the FY20 audit to April 2022. By that time, the Civic Fund had new finance staff and was planning another transition to a different accounting system. In addition, the Civic Fund’s leadership did not have clear guidance on whether a single audit was required as the received federal funds were passed through as subawards. When transitioning to the current accounting system was completed in fall 2022, the finance team prioritized cleaning and closing the FY21 books. Baltimore Civic Fund and Goldin Group worked together to ensure the FY21 2 audit was completed in Spring 2023 shortly after the FY21 books were cleaned and closed. When the FY21 audit was completed, the 3/31/2023 single audit deadline for FY22 passed. Baltimore Civic Fund and Goldin Group worked together to close the FY22 books shortly after the FY21 audit was completed to ensure the FY22 audit complete by Summer 2023.
Finding 2022-001
2022 – 001: Timely Financial Reporting and SF-SAC Submission Criteria – Filing of the SF-SAC Submission timely represents a functioning financial system. Condition and Context – Complete financial results were not available on a timely basis to begin the audit prior to the due date of the SF-SAC and material misstatements were made during the audit that management has accepted and corrected. The misstatements include recording of contributions and grants in the proper accounting periods. Effect – Complete and accurate financial results were not available on a timely basis to begin the audit prior to the due date of the SF-SAC. Recommendation – Procedures need to be developed for the following:  Management should implement procedures to complete and reconcile all financial information within a reasonable time after year end.  Management should implement a system to track the due date of the SF-SAC to ensure timely filing. Corrective Action Planed - Baltimore Civic Fund & Goldin Group acknowledge the finding on the Civic Fund’s single audit. This finding arose because the audit filing to the federal clearinghouse occurred after its deadline of nine months beyond the fiscal year end. The root causes of the late filing were delays in finalizing the FY20 audit during the COVID pandemic, transitions in accounting systems, and lack of clear guidance. Baltimore Civic Fund engaged a new auditor for its FY20 audit and transitioned accounting systems late in FY20, delaying the finalization of the FY20 audit to April 2022. By that time, the Civic Fund had new finance staff and was planning another transition to a different accounting system. In addition, the Civic Fund’s leadership did not have clear guidance on whether a single audit was required as the received federal funds were passed through as subawards. When transitioning to the current accounting system was completed in fall 2022, the finance team prioritized cleaning and closing the FY21 books. Baltimore Civic Fund and Goldin Group worked together to ensure the FY21 2 audit was completed in Spring 2023 shortly after the FY21 books were cleaned and closed. When the FY21 audit was completed, the 3/31/2023 single audit deadline for FY22 passed. Baltimore Civic Fund and Goldin Group worked together to close the FY22 books shortly after the FY21 audit was completed to ensure the FY22 audit complete by Summer 2023.
Finding 2022-001
2022 – 001: Timely Financial Reporting and SF-SAC Submission Criteria – Filing of the SF-SAC Submission timely represents a functioning financial system. Condition and Context – Complete financial results were not available on a timely basis to begin the audit prior to the due date of the SF-SAC and material misstatements were made during the audit that management has accepted and corrected. The misstatements include recording of contributions and grants in the proper accounting periods. Effect – Complete and accurate financial results were not available on a timely basis to begin the audit prior to the due date of the SF-SAC. Recommendation – Procedures need to be developed for the following:  Management should implement procedures to complete and reconcile all financial information within a reasonable time after year end.  Management should implement a system to track the due date of the SF-SAC to ensure timely filing. Corrective Action Planed - Baltimore Civic Fund & Goldin Group acknowledge the finding on the Civic Fund’s single audit. This finding arose because the audit filing to the federal clearinghouse occurred after its deadline of nine months beyond the fiscal year end. The root causes of the late filing were delays in finalizing the FY20 audit during the COVID pandemic, transitions in accounting systems, and lack of clear guidance. Baltimore Civic Fund engaged a new auditor for its FY20 audit and transitioned accounting systems late in FY20, delaying the finalization of the FY20 audit to April 2022. By that time, the Civic Fund had new finance staff and was planning another transition to a different accounting system. In addition, the Civic Fund’s leadership did not have clear guidance on whether a single audit was required as the received federal funds were passed through as subawards. When transitioning to the current accounting system was completed in fall 2022, the finance team prioritized cleaning and closing the FY21 books. Baltimore Civic Fund and Goldin Group worked together to ensure the FY21 2 audit was completed in Spring 2023 shortly after the FY21 books were cleaned and closed. When the FY21 audit was completed, the 3/31/2023 single audit deadline for FY22 passed. Baltimore Civic Fund and Goldin Group worked together to close the FY22 books shortly after the FY21 audit was completed to ensure the FY22 audit complete by Summer 2023.