FAC Explorer

Audit 20204

FY End
2022-12-31
Total Expended
$1.63M
Findings
8
Programs
7
Organization: Life & Discovery Inc. (dba Asian American Center of Frederick) (MD)
Year: 2022 Accepted: 2023-09-28
Auditor: Lswg P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20527 2022-001 Material Weakness - AB
20528 2022-002 Material Weakness - ABI
20529 2022-001 Material Weakness - AB
20530 2022-002 Material Weakness - ABI
596969 2022-001 Material Weakness - AB
596970 2022-002 Material Weakness - ABI
596971 2022-001 Material Weakness - AB
596972 2022-002 Material Weakness - ABI

Programs

ALN Program Spent Major Findings
93.137 Community Programs to Improve Minority Health Grant Program $756,592 Yes 2
94.002 Retired and Senior Volunteer Program $251,961 - 0
94.016 Senior Companion Program $147,722 - 0
97.024 Emergency Food and Shelter National Board Program $131,034 - 0
93.516 Affordable Care Act (aca) Public Health Training Centers Program $22,609 - 0
97.010 Citizenship Education and Training $15,198 - 0
93.991 Preventive Health and Health Services Block Grant $12,653 - 0

Contacts

Name Title Type
CWPBFBBF2FK8 Elizabeth Chung Auditee
3016943355 Cynthia Eva Webb Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note A - Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Asian American Center of Frederick under programs of the federal government 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Compliance testing of all general requirements, as described in the OMBs Compliance Supplement, was performed. Compliance testing of specific requirements was performed for the major federal award program listed below. Because the Schedule presents only a selected portion of the operations of Asian American Center of Frederick, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Asian American Center of Frederick.MAJOR PROGRAMCommunity Programs to Improve Minority Health Grant Program (Assistance Listing # 93.137) is the major program tested for the year ended December 31, 2022. The objective of this program is to support public and private evidence-based interventions and innovative models to improve the health outcomes of racial and ethnic minority communities. Also to conduct policy demonstration which coordinate integrated services, community outreach and systems navigation to improve access to care for minorities and disenfranchised communities. The U.S. Department of Health and Human Services administers the program.Note B - Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting using accounting principles generally accepted in the United States of America. 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.Note C Indirect Cost RateAsian American Center of Frederick has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.

Finding Details

Finding 2022-001
DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Information Assistance Listing # 93.137 Community Programs to Improve Minority Health Grant Program 2022-001 Documentation of Personnel Expenses (Timesheets) Material Weakness Criteria: Generally accepted accounting principles in the United States (GAAP) requires entities to establish and maintain effective internal controls over financial reporting to ensure accurate financial reports. A good system of internal controls requires contemporaneous timesheets be maintained for all employees and the timesheets should be signed by both the employee and the supervisor. 2 CFR Section 200.430 also requires charges to federal awards for salaries and wages to be based on records that accurately reflect the work performed. Condition: A sample of ten employees was selected from four payrolls throughout the year under audit. 27 employees did not have timesheets. Cause: Management believed that full-time salaried employees did not require a timesheet. Effect: Contemporaneous documentation was not obtained from employees. Subsequent, employees signed certifications for the allocation of their time. Auditor?s Recommendation: We recommend that management require all employees to complete a timesheet which includes all required UG elements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and has already taken corrective action. On January 1, 2023 an electronic time reporting function was put into effect through ADP (?Automatic Data Processing?), the company?s payroll processing system. This improvement allows employees to enter their time and select a cost center (?department code?) at the time of entry. It then routes the timesheet for approval by the supervisor before reaching the accounting department for payment initiation, resulting in an automated review and approval.
Finding 2022-002
DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Information Assistance Listing # 93.137 Community Programs to Improve Minority Health Grant Program 2022-002 Policies and Procedures Material Weakness Criteria: The Code of Federal Regulations (CFR) Section 200.318 - 200.326 require written policies concerning methods of procurement for goods and services. Condition: The Organization did not have a written procurement policy that included all of the required elements during 2022. Cause: The Organization is smaller and while general procedures for the procurement of goods and services have been established, they were not written and did not meet all of the requirements of the CFR. Effect: The Organization is not in compliance with Section 200.318 - 200.326 of the Code of Federal Regulations. Auditor?s Recommendation: We recommend that the Organization adopt a formal written procurement policy in the format and with the elements required by 2 CFR Sections 200.318 to 200.326. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and adopted a ?Fiscal Policies and Procedures Manual? on October 1, 2022.
Finding 2022-001
DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Information Assistance Listing # 93.137 Community Programs to Improve Minority Health Grant Program 2022-001 Documentation of Personnel Expenses (Timesheets) Material Weakness Criteria: Generally accepted accounting principles in the United States (GAAP) requires entities to establish and maintain effective internal controls over financial reporting to ensure accurate financial reports. A good system of internal controls requires contemporaneous timesheets be maintained for all employees and the timesheets should be signed by both the employee and the supervisor. 2 CFR Section 200.430 also requires charges to federal awards for salaries and wages to be based on records that accurately reflect the work performed. Condition: A sample of ten employees was selected from four payrolls throughout the year under audit. 27 employees did not have timesheets. Cause: Management believed that full-time salaried employees did not require a timesheet. Effect: Contemporaneous documentation was not obtained from employees. Subsequent, employees signed certifications for the allocation of their time. Auditor?s Recommendation: We recommend that management require all employees to complete a timesheet which includes all required UG elements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and has already taken corrective action. On January 1, 2023 an electronic time reporting function was put into effect through ADP (?Automatic Data Processing?), the company?s payroll processing system. This improvement allows employees to enter their time and select a cost center (?department code?) at the time of entry. It then routes the timesheet for approval by the supervisor before reaching the accounting department for payment initiation, resulting in an automated review and approval.
Finding 2022-002
DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Information Assistance Listing # 93.137 Community Programs to Improve Minority Health Grant Program 2022-002 Policies and Procedures Material Weakness Criteria: The Code of Federal Regulations (CFR) Section 200.318 - 200.326 require written policies concerning methods of procurement for goods and services. Condition: The Organization did not have a written procurement policy that included all of the required elements during 2022. Cause: The Organization is smaller and while general procedures for the procurement of goods and services have been established, they were not written and did not meet all of the requirements of the CFR. Effect: The Organization is not in compliance with Section 200.318 - 200.326 of the Code of Federal Regulations. Auditor?s Recommendation: We recommend that the Organization adopt a formal written procurement policy in the format and with the elements required by 2 CFR Sections 200.318 to 200.326. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and adopted a ?Fiscal Policies and Procedures Manual? on October 1, 2022.
Finding 2022-001
DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Information Assistance Listing # 93.137 Community Programs to Improve Minority Health Grant Program 2022-001 Documentation of Personnel Expenses (Timesheets) Material Weakness Criteria: Generally accepted accounting principles in the United States (GAAP) requires entities to establish and maintain effective internal controls over financial reporting to ensure accurate financial reports. A good system of internal controls requires contemporaneous timesheets be maintained for all employees and the timesheets should be signed by both the employee and the supervisor. 2 CFR Section 200.430 also requires charges to federal awards for salaries and wages to be based on records that accurately reflect the work performed. Condition: A sample of ten employees was selected from four payrolls throughout the year under audit. 27 employees did not have timesheets. Cause: Management believed that full-time salaried employees did not require a timesheet. Effect: Contemporaneous documentation was not obtained from employees. Subsequent, employees signed certifications for the allocation of their time. Auditor?s Recommendation: We recommend that management require all employees to complete a timesheet which includes all required UG elements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and has already taken corrective action. On January 1, 2023 an electronic time reporting function was put into effect through ADP (?Automatic Data Processing?), the company?s payroll processing system. This improvement allows employees to enter their time and select a cost center (?department code?) at the time of entry. It then routes the timesheet for approval by the supervisor before reaching the accounting department for payment initiation, resulting in an automated review and approval.
Finding 2022-002
DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Information Assistance Listing # 93.137 Community Programs to Improve Minority Health Grant Program 2022-002 Policies and Procedures Material Weakness Criteria: The Code of Federal Regulations (CFR) Section 200.318 - 200.326 require written policies concerning methods of procurement for goods and services. Condition: The Organization did not have a written procurement policy that included all of the required elements during 2022. Cause: The Organization is smaller and while general procedures for the procurement of goods and services have been established, they were not written and did not meet all of the requirements of the CFR. Effect: The Organization is not in compliance with Section 200.318 - 200.326 of the Code of Federal Regulations. Auditor?s Recommendation: We recommend that the Organization adopt a formal written procurement policy in the format and with the elements required by 2 CFR Sections 200.318 to 200.326. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and adopted a ?Fiscal Policies and Procedures Manual? on October 1, 2022.
Finding 2022-001
DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Information Assistance Listing # 93.137 Community Programs to Improve Minority Health Grant Program 2022-001 Documentation of Personnel Expenses (Timesheets) Material Weakness Criteria: Generally accepted accounting principles in the United States (GAAP) requires entities to establish and maintain effective internal controls over financial reporting to ensure accurate financial reports. A good system of internal controls requires contemporaneous timesheets be maintained for all employees and the timesheets should be signed by both the employee and the supervisor. 2 CFR Section 200.430 also requires charges to federal awards for salaries and wages to be based on records that accurately reflect the work performed. Condition: A sample of ten employees was selected from four payrolls throughout the year under audit. 27 employees did not have timesheets. Cause: Management believed that full-time salaried employees did not require a timesheet. Effect: Contemporaneous documentation was not obtained from employees. Subsequent, employees signed certifications for the allocation of their time. Auditor?s Recommendation: We recommend that management require all employees to complete a timesheet which includes all required UG elements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and has already taken corrective action. On January 1, 2023 an electronic time reporting function was put into effect through ADP (?Automatic Data Processing?), the company?s payroll processing system. This improvement allows employees to enter their time and select a cost center (?department code?) at the time of entry. It then routes the timesheet for approval by the supervisor before reaching the accounting department for payment initiation, resulting in an automated review and approval.
Finding 2022-002
DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Information Assistance Listing # 93.137 Community Programs to Improve Minority Health Grant Program 2022-002 Policies and Procedures Material Weakness Criteria: The Code of Federal Regulations (CFR) Section 200.318 - 200.326 require written policies concerning methods of procurement for goods and services. Condition: The Organization did not have a written procurement policy that included all of the required elements during 2022. Cause: The Organization is smaller and while general procedures for the procurement of goods and services have been established, they were not written and did not meet all of the requirements of the CFR. Effect: The Organization is not in compliance with Section 200.318 - 200.326 of the Code of Federal Regulations. Auditor?s Recommendation: We recommend that the Organization adopt a formal written procurement policy in the format and with the elements required by 2 CFR Sections 200.318 to 200.326. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and adopted a ?Fiscal Policies and Procedures Manual? on October 1, 2022.