Audit 22782

FY End

2022-12-31

Total Expended

$1.04M

Findings

2

Programs

1

Organization: Fibco Family Services, Inc. (AZ)

Year: 2022 Accepted: 2023-09-13

Auditor: Gregory Michael Coy CPA PLLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
21635	2022-001	Material Weakness	-	P
598077	2022-001	Material Weakness	-	P

ALN	Program	Spent	Major	Findings
14.195	Section 8 Housing Assistance Payments Program	$1.04M	Yes	1

Contacts

Name	Title	Type
W6CMB6N7BCM4	Akilah Stewart	Auditee
6022581998	Gregory Coy	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. When applicable, 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. No federal assistance has been provided to a subrecipient. FIBCO Family Services, Inc.s summary of significant accounting polices is presented in Note 1 to the basic financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of FIBCO Family Services, Inc. (the Organization) 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). Because the Schedule presents only a selected portion of the operations of FIBCO Family Services, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of FIBCO Family Services, Inc.

Title: Relationship to basic financial statements Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal assistance has been provided to a subrecipient. FIBCO Family Services, Inc.s summary of significant accounting polices is presented in Note 1 to the basic financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Federal award expenditures are reported on the statement of functional expenditures as program costs. However, expenditures in the schedule of expenditures of federal awards for certain programs which have incurred deficits have been limited to the related contracted amount. In addition, for certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported on the schedule of expenditures of federal awards due to program expenditures exceeding grant or contract budget limitations, which are not included as federal financial assistance.

Finding Details

Finding 2022-001

Finding 2022-001: Material weakness over financial reporting of contributions Criteria: Financial reporting in accordance with generally accepted accounting principles requires that unconditional cash and non-cash contributions be recognized at date of the donation was received. Conditions: During 2022, the Organization was granted forgiveness of a $750,000 loan from the State of Arizona, Department of Housing and failed to recognize contribution revenue from the forgiveness of the loan. In addition, a contribution receivable in the amount of $50,000 was received prior to year-end and the Organization failed to recognize the receivable or contribution revenue. Cause: Management appears to not have sufficient year-end cutoff and review controls in place to ensure that material contribution revenue is properly identified, captured and recognized in accordance with generally accepted accounting principles Effect: The unaudited financials statements were initially materially misstated for contribution revenue. Audit adjustments were proposed during the audit to correct for the effect of these misstatements. Management accepted the proposed audit adjustments and, accordingly, the accompanying financial statements have been corrected for these misstatements. Questioned costs: None Repeat finding from prior year: No Recommendation: Management should implement revenue cutoff and review controls and procedures to ensure that all unconditional contribution revenue is properly recognized on the date received in accordance with generally accepted accounting principles Views of responsible officials and corrective action plan: Management understands and agrees with the finding and the recommendations. Management has accepted and recorded the proposed audit adjustments. Management plans to implement certain revenue cutoff procedures and year-end review procedures to ensure that material contribution revenue is properly identified, captured and recorded in accordance with generally accepted accounting principles in future years.

Finding 2022-001

Finding 2022-001: Material weakness over financial reporting of contributions Criteria: Financial reporting in accordance with generally accepted accounting principles requires that unconditional cash and non-cash contributions be recognized at date of the donation was received. Conditions: During 2022, the Organization was granted forgiveness of a $750,000 loan from the State of Arizona, Department of Housing and failed to recognize contribution revenue from the forgiveness of the loan. In addition, a contribution receivable in the amount of $50,000 was received prior to year-end and the Organization failed to recognize the receivable or contribution revenue. Cause: Management appears to not have sufficient year-end cutoff and review controls in place to ensure that material contribution revenue is properly identified, captured and recognized in accordance with generally accepted accounting principles Effect: The unaudited financials statements were initially materially misstated for contribution revenue. Audit adjustments were proposed during the audit to correct for the effect of these misstatements. Management accepted the proposed audit adjustments and, accordingly, the accompanying financial statements have been corrected for these misstatements. Questioned costs: None Repeat finding from prior year: No Recommendation: Management should implement revenue cutoff and review controls and procedures to ensure that all unconditional contribution revenue is properly recognized on the date received in accordance with generally accepted accounting principles Views of responsible officials and corrective action plan: Management understands and agrees with the finding and the recommendations. Management has accepted and recorded the proposed audit adjustments. Management plans to implement certain revenue cutoff procedures and year-end review procedures to ensure that material contribution revenue is properly identified, captured and recorded in accordance with generally accepted accounting principles in future years.