FAC Explorer

Audit 20775

FY End
2022-08-31
Total Expended
$9.16M
Findings
8
Programs
7
Organization: Easter Seals Serving Dc/md/va (MD)
Year: 2022 Accepted: 2023-03-06
Auditor: Aprio LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
24089 2022-004 Material Weakness Yes G
24090 2022-004 Material Weakness Yes G
24091 2022-004 Material Weakness Yes G
24092 2022-004 Material Weakness Yes G
600531 2022-004 Material Weakness Yes G
600532 2022-004 Material Weakness Yes G
600533 2022-004 Material Weakness Yes G
600534 2022-004 Material Weakness Yes G

Programs

ALN Program Spent Major Findings
17.805 Homeless Veterans Reintegration Project $929,741 - 0
93.434 Every Student Succeeds Act/preschool Development Grants $905,000 Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $374,050 Yes 0
93.600 Head Start $179,683 Yes 1
93.575 Child Care and Development Block Grant $84,500 - 0
93.498 Provider Relief Fund $71,570 - 0
14.218 Community Development Block Grants/entitlement Grants $0 Yes 0

Contacts

Name Title Type
ZN9ZL7XENSB8 Bradley Freedman Auditee
3015888700 Mark Robins Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Such expenditures are recognized following the cost principles contained in OMB Circular A-122 Cost Principles for Non-Profit Organizations or 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 auditee did not use the de minimis cost rate. COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS (14.218) - Balances outstanding at the end of the audit period were 325839. COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS (14.218) - Balances outstanding at the end of the audit period were 990627.
Title: Reconciliation to Revenue Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Such expenditures are recognized following the cost principles contained in OMB Circular A-122 Cost Principles for Non-Profit Organizations or 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 auditee did not use the de minimis cost rate. A reconciliation of the Schedule to the Statement of Activities and Changes in Net Assets for the year ended August 31, 2022 is as follows: Federal grant expenditures$9,162,215Less: Government cost-reimbursement contract (851,276)Employee retention tax credit1,428,160PPP loan forgiveness 2,000,000Total government grants $ 11,739,099

Finding Details

Finding 2022-004
Finding 2022-004: Reportable Finding Considered a Material Weakness - Failure to Meet Matching Requirement Program name: Head Start Assistance Listing: 93.600 Federal awarding agency: United States Department of Health and Human Services Compliance requirement: Matching, level of effort, earmarking Criteria: The grant agreement (03CH010635-04-00 and 03CH010635-05-00) for the Head Start requires a non-federal matching of 20% unless a waiver is approved by the agency. Condition: The Organization did not meet the 20% non-federal match requirement for the year ended August 31, 2022, which includes the budget periods from August 1, 2021 through July 31, 2022 and August 1, 2022 through July 31, 2023. Context: It was determined that the matching requirement was not met due to not enough volunteer activity as a result of the COVID-19 pandemic. The Organization has requested a waiver from the agency. Cause: The Organization was not able to meet the non-federal matching contributions due to health department requirements to shut-down the Child Development Centers due to the COVID-19 pandemic. Due to the closures of the centers, there were fewer volunteer hours which the Organization uses to meet the matching requirement. Effect: The Organization is in violation of the matching requirement stipulated in the grant agreement. Repeat finding: This is a repeat finding. Questioned costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the Organization ensure that the non-federal matching requirements for each federal grant be met every fiscal year or apply for a waiver as soon as it becomes apparent that the match will not be met. Management?s response and corrective action plan (unaudited): See Appendix A ? corrective action plan
Finding 2022-004
Finding 2022-004: Reportable Finding Considered a Material Weakness - Failure to Meet Matching Requirement Program name: Head Start Assistance Listing: 93.600 Federal awarding agency: United States Department of Health and Human Services Compliance requirement: Matching, level of effort, earmarking Criteria: The grant agreement (03CH010635-04-00 and 03CH010635-05-00) for the Head Start requires a non-federal matching of 20% unless a waiver is approved by the agency. Condition: The Organization did not meet the 20% non-federal match requirement for the year ended August 31, 2022, which includes the budget periods from August 1, 2021 through July 31, 2022 and August 1, 2022 through July 31, 2023. Context: It was determined that the matching requirement was not met due to not enough volunteer activity as a result of the COVID-19 pandemic. The Organization has requested a waiver from the agency. Cause: The Organization was not able to meet the non-federal matching contributions due to health department requirements to shut-down the Child Development Centers due to the COVID-19 pandemic. Due to the closures of the centers, there were fewer volunteer hours which the Organization uses to meet the matching requirement. Effect: The Organization is in violation of the matching requirement stipulated in the grant agreement. Repeat finding: This is a repeat finding. Questioned costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the Organization ensure that the non-federal matching requirements for each federal grant be met every fiscal year or apply for a waiver as soon as it becomes apparent that the match will not be met. Management?s response and corrective action plan (unaudited): See Appendix A ? corrective action plan
Finding 2022-004
Finding 2022-004: Reportable Finding Considered a Material Weakness - Failure to Meet Matching Requirement Program name: Head Start Assistance Listing: 93.600 Federal awarding agency: United States Department of Health and Human Services Compliance requirement: Matching, level of effort, earmarking Criteria: The grant agreement (03CH010635-04-00 and 03CH010635-05-00) for the Head Start requires a non-federal matching of 20% unless a waiver is approved by the agency. Condition: The Organization did not meet the 20% non-federal match requirement for the year ended August 31, 2022, which includes the budget periods from August 1, 2021 through July 31, 2022 and August 1, 2022 through July 31, 2023. Context: It was determined that the matching requirement was not met due to not enough volunteer activity as a result of the COVID-19 pandemic. The Organization has requested a waiver from the agency. Cause: The Organization was not able to meet the non-federal matching contributions due to health department requirements to shut-down the Child Development Centers due to the COVID-19 pandemic. Due to the closures of the centers, there were fewer volunteer hours which the Organization uses to meet the matching requirement. Effect: The Organization is in violation of the matching requirement stipulated in the grant agreement. Repeat finding: This is a repeat finding. Questioned costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the Organization ensure that the non-federal matching requirements for each federal grant be met every fiscal year or apply for a waiver as soon as it becomes apparent that the match will not be met. Management?s response and corrective action plan (unaudited): See Appendix A ? corrective action plan
Finding 2022-004
Finding 2022-004: Reportable Finding Considered a Material Weakness - Failure to Meet Matching Requirement Program name: Head Start Assistance Listing: 93.600 Federal awarding agency: United States Department of Health and Human Services Compliance requirement: Matching, level of effort, earmarking Criteria: The grant agreement (03CH010635-04-00 and 03CH010635-05-00) for the Head Start requires a non-federal matching of 20% unless a waiver is approved by the agency. Condition: The Organization did not meet the 20% non-federal match requirement for the year ended August 31, 2022, which includes the budget periods from August 1, 2021 through July 31, 2022 and August 1, 2022 through July 31, 2023. Context: It was determined that the matching requirement was not met due to not enough volunteer activity as a result of the COVID-19 pandemic. The Organization has requested a waiver from the agency. Cause: The Organization was not able to meet the non-federal matching contributions due to health department requirements to shut-down the Child Development Centers due to the COVID-19 pandemic. Due to the closures of the centers, there were fewer volunteer hours which the Organization uses to meet the matching requirement. Effect: The Organization is in violation of the matching requirement stipulated in the grant agreement. Repeat finding: This is a repeat finding. Questioned costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the Organization ensure that the non-federal matching requirements for each federal grant be met every fiscal year or apply for a waiver as soon as it becomes apparent that the match will not be met. Management?s response and corrective action plan (unaudited): See Appendix A ? corrective action plan
Finding 2022-004
Finding 2022-004: Reportable Finding Considered a Material Weakness - Failure to Meet Matching Requirement Program name: Head Start Assistance Listing: 93.600 Federal awarding agency: United States Department of Health and Human Services Compliance requirement: Matching, level of effort, earmarking Criteria: The grant agreement (03CH010635-04-00 and 03CH010635-05-00) for the Head Start requires a non-federal matching of 20% unless a waiver is approved by the agency. Condition: The Organization did not meet the 20% non-federal match requirement for the year ended August 31, 2022, which includes the budget periods from August 1, 2021 through July 31, 2022 and August 1, 2022 through July 31, 2023. Context: It was determined that the matching requirement was not met due to not enough volunteer activity as a result of the COVID-19 pandemic. The Organization has requested a waiver from the agency. Cause: The Organization was not able to meet the non-federal matching contributions due to health department requirements to shut-down the Child Development Centers due to the COVID-19 pandemic. Due to the closures of the centers, there were fewer volunteer hours which the Organization uses to meet the matching requirement. Effect: The Organization is in violation of the matching requirement stipulated in the grant agreement. Repeat finding: This is a repeat finding. Questioned costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the Organization ensure that the non-federal matching requirements for each federal grant be met every fiscal year or apply for a waiver as soon as it becomes apparent that the match will not be met. Management?s response and corrective action plan (unaudited): See Appendix A ? corrective action plan
Finding 2022-004
Finding 2022-004: Reportable Finding Considered a Material Weakness - Failure to Meet Matching Requirement Program name: Head Start Assistance Listing: 93.600 Federal awarding agency: United States Department of Health and Human Services Compliance requirement: Matching, level of effort, earmarking Criteria: The grant agreement (03CH010635-04-00 and 03CH010635-05-00) for the Head Start requires a non-federal matching of 20% unless a waiver is approved by the agency. Condition: The Organization did not meet the 20% non-federal match requirement for the year ended August 31, 2022, which includes the budget periods from August 1, 2021 through July 31, 2022 and August 1, 2022 through July 31, 2023. Context: It was determined that the matching requirement was not met due to not enough volunteer activity as a result of the COVID-19 pandemic. The Organization has requested a waiver from the agency. Cause: The Organization was not able to meet the non-federal matching contributions due to health department requirements to shut-down the Child Development Centers due to the COVID-19 pandemic. Due to the closures of the centers, there were fewer volunteer hours which the Organization uses to meet the matching requirement. Effect: The Organization is in violation of the matching requirement stipulated in the grant agreement. Repeat finding: This is a repeat finding. Questioned costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the Organization ensure that the non-federal matching requirements for each federal grant be met every fiscal year or apply for a waiver as soon as it becomes apparent that the match will not be met. Management?s response and corrective action plan (unaudited): See Appendix A ? corrective action plan
Finding 2022-004
Finding 2022-004: Reportable Finding Considered a Material Weakness - Failure to Meet Matching Requirement Program name: Head Start Assistance Listing: 93.600 Federal awarding agency: United States Department of Health and Human Services Compliance requirement: Matching, level of effort, earmarking Criteria: The grant agreement (03CH010635-04-00 and 03CH010635-05-00) for the Head Start requires a non-federal matching of 20% unless a waiver is approved by the agency. Condition: The Organization did not meet the 20% non-federal match requirement for the year ended August 31, 2022, which includes the budget periods from August 1, 2021 through July 31, 2022 and August 1, 2022 through July 31, 2023. Context: It was determined that the matching requirement was not met due to not enough volunteer activity as a result of the COVID-19 pandemic. The Organization has requested a waiver from the agency. Cause: The Organization was not able to meet the non-federal matching contributions due to health department requirements to shut-down the Child Development Centers due to the COVID-19 pandemic. Due to the closures of the centers, there were fewer volunteer hours which the Organization uses to meet the matching requirement. Effect: The Organization is in violation of the matching requirement stipulated in the grant agreement. Repeat finding: This is a repeat finding. Questioned costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the Organization ensure that the non-federal matching requirements for each federal grant be met every fiscal year or apply for a waiver as soon as it becomes apparent that the match will not be met. Management?s response and corrective action plan (unaudited): See Appendix A ? corrective action plan
Finding 2022-004
Finding 2022-004: Reportable Finding Considered a Material Weakness - Failure to Meet Matching Requirement Program name: Head Start Assistance Listing: 93.600 Federal awarding agency: United States Department of Health and Human Services Compliance requirement: Matching, level of effort, earmarking Criteria: The grant agreement (03CH010635-04-00 and 03CH010635-05-00) for the Head Start requires a non-federal matching of 20% unless a waiver is approved by the agency. Condition: The Organization did not meet the 20% non-federal match requirement for the year ended August 31, 2022, which includes the budget periods from August 1, 2021 through July 31, 2022 and August 1, 2022 through July 31, 2023. Context: It was determined that the matching requirement was not met due to not enough volunteer activity as a result of the COVID-19 pandemic. The Organization has requested a waiver from the agency. Cause: The Organization was not able to meet the non-federal matching contributions due to health department requirements to shut-down the Child Development Centers due to the COVID-19 pandemic. Due to the closures of the centers, there were fewer volunteer hours which the Organization uses to meet the matching requirement. Effect: The Organization is in violation of the matching requirement stipulated in the grant agreement. Repeat finding: This is a repeat finding. Questioned costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the Organization ensure that the non-federal matching requirements for each federal grant be met every fiscal year or apply for a waiver as soon as it becomes apparent that the match will not be met. Management?s response and corrective action plan (unaudited): See Appendix A ? corrective action plan