FAC Explorer

Audit 21276

FY End
2022-09-30
Total Expended
$2.53M
Findings
4
Programs
9
Organization: Alfred Saliba Family Services Center, Inc. (AL)
Year: 2022 Accepted: 2023-06-28
Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
24715 2022-002 Material Weakness Yes L
24716 2022-003 Significant Deficiency - L
601157 2022-002 Material Weakness Yes L
601158 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.600 Head Start $649,902 Yes 0
93.556 Promoting Safe and Stable Families $281,462 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $85,139 - 0
93.575 Child Care and Development Block Grant $71,973 - 0
10.558 Child and Adult Care Food Program $45,569 - 0
93.600 Covid-19 Head Start $43,513 Yes 0
93.558 Temporary Assistance for Needy Families $25,000 - 0
14.218 Covid-19 Community Development Block Grants/entitlement Grants $23,121 - 0
14.218 Community Development Block Grants/entitlement Grants $4,912 - 0

Contacts

Name Title Type
SV7PMMCGE359 Belinda Mitchell Auditee
3348361437 Michael Maddox Auditor
No contacts on file

Notes to SEFA

Title: Note 3: BASIS OF PRESENTATION Accounting Policies: The SEFA was prepared on the modified accrual basis of accounting. The modified accrual basisdiffers from the full accrual basis of accounting in that expenditures for property and equipment areexpensed when incurred, rather than being capitalized and depreciated over their useful lives, andexpenditures for the principal portion of debt service are expensed when incurred, rather thanbeing applied to reduce the outstanding principal portion of debt, which conforms to the basis ofreporting to grantors for reimbursement under the terms of the Agencys federal grants. De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the year endedSeptember 30, 2022. The accompanying schedule of expenditures of federal awards (SEFA) summarizes the federal expenditures of the Agency under programs of the federal government for the year ended September 30, 2022. The amounts reported as federal expenditures were obtained from the Agencys general ledger. Because the SEFA 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 and cash flows of the Agency.For purposes of the SEFA, federal awards include all grants, contracts, and similar agreements entered into directly with the federal government and other passthrough entities. The Agency has obtained Assistance Listing Number (ALN) numbers to ensure that all programs have been identified in the schedule. ALN numbers have been appropriately listed by applicable programs. Federal programs with different ALN numbers that are closely related because they share common compliance requirements are defined as a cluster by the Uniform Guidance. A cluster is separately identified in the SEFA.CDBG Entitlement Grants Cluster Includes awards that assist agencies in development of viable urban communities by providing decent housing, a suitable living environment, and expanded economic opportunities, principally for persons of low and moderate income.Head Start Cluster Includes awards that assist agencies in providing programs that promote school readiness of lowincome children by enhancing childrens cognitive, social and emotional development.SNAP Cluster Includes programs to help lowincome households but the food they need for good health.CCDF Cluster Includes awards to increase the availability, affordability and quality of child care services.
Title: Note 4: RELATIONSHIP OF THE SCHEDULE TO PROGRAM FINANCIAL REPORTS Accounting Policies: The SEFA was prepared on the modified accrual basis of accounting. The modified accrual basisdiffers from the full accrual basis of accounting in that expenditures for property and equipment areexpensed when incurred, rather than being capitalized and depreciated over their useful lives, andexpenditures for the principal portion of debt service are expensed when incurred, rather thanbeing applied to reduce the outstanding principal portion of debt, which conforms to the basis ofreporting to grantors for reimbursement under the terms of the Agencys federal grants. De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the year endedSeptember 30, 2022. The amounts reflected in the financial reports submitted to the awarding federal and/or passthrough agencies and the SEFA may differ. Some of the factors that may account for any difference include the following:The Agencys fiscal year end may differ from the programs year end.Accruals recognized in the SEFA, because of year end procedures, may not be reported in the program financial reports until the next program reporting period.Fixed asset purchases and the resultant depreciation charges are recognized as fixed assets in the Agencys financial statements and as expenditures in the program financial reports.
Title: Note 5: FEDERAL PASSTHROUGH FUNDS Accounting Policies: The SEFA was prepared on the modified accrual basis of accounting. The modified accrual basisdiffers from the full accrual basis of accounting in that expenditures for property and equipment areexpensed when incurred, rather than being capitalized and depreciated over their useful lives, andexpenditures for the principal portion of debt service are expensed when incurred, rather thanbeing applied to reduce the outstanding principal portion of debt, which conforms to the basis ofreporting to grantors for reimbursement under the terms of the Agencys federal grants. De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the year endedSeptember 30, 2022. The Agency is the subrecipient of federal funds that have been subjected to testing and are reported as expenditures and listed as federal passthrough funds.
Title: Note 6: CONTINGENCIES Accounting Policies: The SEFA was prepared on the modified accrual basis of accounting. The modified accrual basisdiffers from the full accrual basis of accounting in that expenditures for property and equipment areexpensed when incurred, rather than being capitalized and depreciated over their useful lives, andexpenditures for the principal portion of debt service are expensed when incurred, rather thanbeing applied to reduce the outstanding principal portion of debt, which conforms to the basis ofreporting to grantors for reimbursement under the terms of the Agencys federal grants. De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the year endedSeptember 30, 2022. Grant monies received and disbursed by the Agency are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the Agency does not believe that such disallowance, if any, would have a material effect on the financial position of the Agency. As of September 30, 2022, there were no material questioned or disallowed costs as a result of grant audits in process or completed.
Title: Note 7: Noncash Assistance Accounting Policies: The SEFA was prepared on the modified accrual basis of accounting. The modified accrual basisdiffers from the full accrual basis of accounting in that expenditures for property and equipment areexpensed when incurred, rather than being capitalized and depreciated over their useful lives, andexpenditures for the principal portion of debt service are expensed when incurred, rather thanbeing applied to reduce the outstanding principal portion of debt, which conforms to the basis ofreporting to grantors for reimbursement under the terms of the Agencys federal grants. De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the year endedSeptember 30, 2022. The Agency did not receive any federal noncash assistance for the fiscal year ended September 30, 2022.
Title: Note 8: LOANS AND LOAN GUARANTEES Accounting Policies: The SEFA was prepared on the modified accrual basis of accounting. The modified accrual basisdiffers from the full accrual basis of accounting in that expenditures for property and equipment areexpensed when incurred, rather than being capitalized and depreciated over their useful lives, andexpenditures for the principal portion of debt service are expensed when incurred, rather thanbeing applied to reduce the outstanding principal portion of debt, which conforms to the basis ofreporting to grantors for reimbursement under the terms of the Agencys federal grants. De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the year endedSeptember 30, 2022. The Agency did not have any loans or loan guarantee programs required to be reported on the schedule for fiscal year ended September 30, 2022.
Title: Note 9: SUBRECIPIENTS Accounting Policies: The SEFA was prepared on the modified accrual basis of accounting. The modified accrual basisdiffers from the full accrual basis of accounting in that expenditures for property and equipment areexpensed when incurred, rather than being capitalized and depreciated over their useful lives, andexpenditures for the principal portion of debt service are expensed when incurred, rather thanbeing applied to reduce the outstanding principal portion of debt, which conforms to the basis ofreporting to grantors for reimbursement under the terms of the Agencys federal grants. De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the year endedSeptember 30, 2022. The Agency provided federal funds to one subrecipient for the fiscal year ended September 30, 2022. The Agency provided EHSCCP funding to East Child Care Partnership.
Title: Note 10: FEDERALLY FUNDED INSURANCE Accounting Policies: The SEFA was prepared on the modified accrual basis of accounting. The modified accrual basisdiffers from the full accrual basis of accounting in that expenditures for property and equipment areexpensed when incurred, rather than being capitalized and depreciated over their useful lives, andexpenditures for the principal portion of debt service are expensed when incurred, rather thanbeing applied to reduce the outstanding principal portion of debt, which conforms to the basis ofreporting to grantors for reimbursement under the terms of the Agencys federal grants. De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the year endedSeptember 30, 2022. The Agency did not have any federally funded insurance required to be reported on the schedule for fiscal year ended September 30, 2022.

Finding Details

Finding 2022-002
Item 2022-002 Reporting (Repeat 2021-001) Head Start and Early Head Start Assistance Listing #93.600 Head Start Grant No. 04CH01121-03-00 U.S. Department of Health and Human Services Federal Award Year - 2022 Condition ? The grantee failed to comply with the terms of the grant award related to the SF-429 ? Real Property Status Report and SF-429-A General Reporting (OMC No. 4040-0016) reports. Controls were not in place to ensure timely review and approval of grant reports. Criteria ? The Uniform Guidance requires that the Agency file forms SF-429 ? Real Property Status Report and SF-429-A General Reporting (OMB No. 4040-0016) annually based upon the end of the budget period. 2 CFR.200.303a requires the Agency to establish and maintain effective internal control 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 - Management did not have controls in place to ensure the timely submission of the report. Questioned Costs ? Not applicable. Effect ? Failure to submit the SF-429 ? Real Property Status Report and SF-429-A General Reporting (OMB No. 4040-0016) reports timely results in noncompliance with the federal statute. Recommendation ? We recommend the Agency implement internal controls which will ensure the timely filing of the reports listed under Special Reporting in the Uniform Guidance. Management and the board of directors should continually be aware of the compliance requirements and related changes in the applicable compliance requirements associated with its federal awards programs. Management?s Response ?Management concurs with the finding. The Agency encountered technical difficulties when attempting to submit the report and is currently seeking the assistance of their representative at Region IV to assist with completing the filing requirement. The grants manager has become aware of the due date for the SF429 and where it is to be submitted and will take full responsibility for the completion and the uploading of this report.
Finding 2022-003
Item 2022-003 Reporting Head Start and Early Head Start Assistance Listing #93.600 Head Start Grant No. 04HE001128-01-C5 U.S. Department of Health and Human Services Federal Award Year - 2022 Condition ? Adequate controls were not in place to review and approve grant reports prior to their submission to the grantor. The Federal Financial Reports (SF-425) for the Head Start Cluster grants were not reviewed and approved prior to submission to the Payment Management System. Criteria ? Grantees should have controls in place to ensure that grant reports are being reviewed and approved by management prior to being submitted to the grantor. 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Cause - Lack of sufficient controls over the review and approval of grant reports to ensure the accuracy and completeness of the report being submitted to the grantor. Questioned Costs ? Not applicable. Effect ? Lack of proper review and approval could result in improper reporting which could lead to disallowed costs. However, our audit disclosed no instances of unallowable costs. Recommendation ? We recommend the implementation of controls to ensure there is evidence of review and approval of the quarterly grant reports prior to submission to the grantor. Management?s Response ? The Agency will implement controls to ensure proper review and approval is obtained on required grant reports prior to submission to the grantor.
Finding 2022-002
Item 2022-002 Reporting (Repeat 2021-001) Head Start and Early Head Start Assistance Listing #93.600 Head Start Grant No. 04CH01121-03-00 U.S. Department of Health and Human Services Federal Award Year - 2022 Condition ? The grantee failed to comply with the terms of the grant award related to the SF-429 ? Real Property Status Report and SF-429-A General Reporting (OMC No. 4040-0016) reports. Controls were not in place to ensure timely review and approval of grant reports. Criteria ? The Uniform Guidance requires that the Agency file forms SF-429 ? Real Property Status Report and SF-429-A General Reporting (OMB No. 4040-0016) annually based upon the end of the budget period. 2 CFR.200.303a requires the Agency to establish and maintain effective internal control 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 - Management did not have controls in place to ensure the timely submission of the report. Questioned Costs ? Not applicable. Effect ? Failure to submit the SF-429 ? Real Property Status Report and SF-429-A General Reporting (OMB No. 4040-0016) reports timely results in noncompliance with the federal statute. Recommendation ? We recommend the Agency implement internal controls which will ensure the timely filing of the reports listed under Special Reporting in the Uniform Guidance. Management and the board of directors should continually be aware of the compliance requirements and related changes in the applicable compliance requirements associated with its federal awards programs. Management?s Response ?Management concurs with the finding. The Agency encountered technical difficulties when attempting to submit the report and is currently seeking the assistance of their representative at Region IV to assist with completing the filing requirement. The grants manager has become aware of the due date for the SF429 and where it is to be submitted and will take full responsibility for the completion and the uploading of this report.
Finding 2022-003
Item 2022-003 Reporting Head Start and Early Head Start Assistance Listing #93.600 Head Start Grant No. 04HE001128-01-C5 U.S. Department of Health and Human Services Federal Award Year - 2022 Condition ? Adequate controls were not in place to review and approve grant reports prior to their submission to the grantor. The Federal Financial Reports (SF-425) for the Head Start Cluster grants were not reviewed and approved prior to submission to the Payment Management System. Criteria ? Grantees should have controls in place to ensure that grant reports are being reviewed and approved by management prior to being submitted to the grantor. 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Cause - Lack of sufficient controls over the review and approval of grant reports to ensure the accuracy and completeness of the report being submitted to the grantor. Questioned Costs ? Not applicable. Effect ? Lack of proper review and approval could result in improper reporting which could lead to disallowed costs. However, our audit disclosed no instances of unallowable costs. Recommendation ? We recommend the implementation of controls to ensure there is evidence of review and approval of the quarterly grant reports prior to submission to the grantor. Management?s Response ? The Agency will implement controls to ensure proper review and approval is obtained on required grant reports prior to submission to the grantor.