FAC Explorer

Audit 24670

FY End
2022-12-31
Total Expended
$8.18M
Findings
4
Programs
7
Organization: Christian Military Academy, Inc. (PR)
Year: 2022 Accepted: 2023-09-27
Auditor: Zuniga CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
32831 2022-001 Significant Deficiency - E
32832 2022-002 Significant Deficiency - F
609273 2022-001 Significant Deficiency - E
609274 2022-002 Significant Deficiency - F

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $1.68M - 0
10.559 Summer Food Service Program for Children $1.41M - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $904,605 - 0
93.600 Head Start $160,148 Yes 0
10.558 Child and Adult Care Food Program $119,839 - 0
93.356 Head Start Disaster Recovery $109,158 Yes 0
17.259 Wia Youth Activities $3,020 - 0

Contacts

Name Title Type
Y9LGG8KAXTB5 Maribel Batista Auditee
7878553188 Juan Carlos Zuniga Auditor
No contacts on file

Notes to SEFA

Accounting Policies: 1)Basis of presentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal awards activities of Christian Military Academy, Inc. (the Academy) 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 the 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 Christian Military Academy, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Christian Military Academy, Inc.2)Summary of significant accounting policiesExpenditures reported in the Schedule 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 allowed or are limited as to reimbursement. Negative amounts shown in the Schedule, if any, represents adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Additional policies are the following:(a)The financial transactions are recorded by the Organization in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. (b)Expenditures are recognized in the accounting period in which the liability is incurred, if measurable, or when paid, whichever occurs first.3)Federal CFDA numberThe Catalog of Federal Domestic Assistance (CFDA) numbers included in the Schedule are determined based on the programs name, review of grant contract information and the Office of Management and Budgets Catalogue of Federal Domestic Assistance. The CFDA number is a program identification number, whose first two digits identify the federal department or agency that administers the program and thee last three numbers are assigned by numerical sequence. 4)Major federal programsMajor programs are identified in the Summary of Audits Results Section of the Schedules of Findings and Questioned Cost.5)Catalog of Federal Domestic Assistance (CFDA) Number The CFDA numbers included in this schedule are determined based on the program name, review of grant contract information and the U.S. Office of Management and Budgets Catalogue of Federal Domestic Assistance. 6)Cluster programs2 CFR 200.17 defines a cluster of programs as a grouping of closely related programs that share common compliance requirements. According to this definition, Child Nutrition and Head Start were deemed to be a cluster of programs and were tested accordingly.7)Distinction between Type A and Type B ProgramsThe dollar threshold for Type A and Type B programs amounted to $750,000. 8)In-kind expenses and matching CostsIn-kind and matching expenses are non-federal share of certain program costs, therefore are not included in the accompanying Schedule.9)Indirect costsThe Academy does not have a federally negotiated indirect cost rate applicable to the programs and therefore there is no election to the 10 percent de minims cost rate as defined in 2 CFR 200.414. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Finding Number: 2022-001 Agency: U.S. Department of Health and Human Services Administration of Children and Families Federal program: Head Start CFDA: 93.600 Category: Internal Control / Compliance Questioned Costs: None Repeat finding: No Condition: During our audit procedures, we noted that two items related to equipment were not capitalized according to internal control procedures of the entity and federal program requirements. Criteria: 45 CFR 75.2 defines equipment as tangible personal property having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes or $5,000. Cause: Management inadvertently were recording these transactions that exceeded the threshold as expense. Effect: The interim financial statements prepared could not reflect clearly the results of operations and may affect financial reporting for external parties or management decisions. Recommendation: We strongly recommend management to analyze the acquisitions of equipment and the aggregate of leasehold improvements to comply with federal regulations and internal controls. On a monthly basis, management could review the data entry of these type of transactions in order to improve the accuracy of balances and proper recording of assets.
Finding 2022-002
Finding Number: 2022-002 Agency: U.S. Department of Health and Human Services Administration of Children and Families Federal programs: Head Start Head Start Disaster Assistance CFDA: 93.600 93.356 Compliance requirement: Equipment and Real Property Management Category: Internal Control / Compliance Questioned Costs: None Repeat finding: No Condition: During our audit procedures, we noted that two items were not included in the property records according to internal control procedures of the entity and federal program requirements. Criteria: 45 CFR 75.320 (d) (1) requires that property records must be maintained including a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: Management inadvertently did not capitalize two property items and as a result were not included in the property records either. Effect: The completeness of property records is compromised and therefore a non-compliance with property federal requirements. Recommendation: We strongly recommend management to analyze the acquisitions of equipment in order to ensure proper classification of books. Also, after recording assets on books, property records should be reconciled monthly including all other the required information and description required by federal regulation.
Finding 2022-001
Finding Number: 2022-001 Agency: U.S. Department of Health and Human Services Administration of Children and Families Federal program: Head Start CFDA: 93.600 Category: Internal Control / Compliance Questioned Costs: None Repeat finding: No Condition: During our audit procedures, we noted that two items related to equipment were not capitalized according to internal control procedures of the entity and federal program requirements. Criteria: 45 CFR 75.2 defines equipment as tangible personal property having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes or $5,000. Cause: Management inadvertently were recording these transactions that exceeded the threshold as expense. Effect: The interim financial statements prepared could not reflect clearly the results of operations and may affect financial reporting for external parties or management decisions. Recommendation: We strongly recommend management to analyze the acquisitions of equipment and the aggregate of leasehold improvements to comply with federal regulations and internal controls. On a monthly basis, management could review the data entry of these type of transactions in order to improve the accuracy of balances and proper recording of assets.
Finding 2022-002
Finding Number: 2022-002 Agency: U.S. Department of Health and Human Services Administration of Children and Families Federal programs: Head Start Head Start Disaster Assistance CFDA: 93.600 93.356 Compliance requirement: Equipment and Real Property Management Category: Internal Control / Compliance Questioned Costs: None Repeat finding: No Condition: During our audit procedures, we noted that two items were not included in the property records according to internal control procedures of the entity and federal program requirements. Criteria: 45 CFR 75.320 (d) (1) requires that property records must be maintained including a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: Management inadvertently did not capitalize two property items and as a result were not included in the property records either. Effect: The completeness of property records is compromised and therefore a non-compliance with property federal requirements. Recommendation: We strongly recommend management to analyze the acquisitions of equipment in order to ensure proper classification of books. Also, after recording assets on books, property records should be reconciled monthly including all other the required information and description required by federal regulation.