Audit 250134

FY End
2022-06-30
Total Expended
$9.32M
Findings
2
Programs
18
Year: 2022 Accepted: 2022-11-26
Auditor: Wipfli LLP

Organization Exclusion Status:

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Contacts

Name Title Type
E7HQSVLCH355 Kelli Coane Auditee
2097543114 Karl Eck, CPA Auditor
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Notes to SEFA

Title: SUBRECIPIENTS Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards and List of Programs (the Schedule) includes the federal award activity of The Resource Connection of Amador and Calaveras Counties, Inc. under programs of the federal government for the year ended June 30, 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 The Resource Connection of Amador and Calaveras Counties, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of The Resource Connection of Amador and Calaveras Counties, Inc.Expenditures reported on 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 allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Resource Connection of Amador and Calaveras Counties, Inc. does not have any subrecipients and therefore has not incurred subrecipient expenditures.
Title: FEDERAL LOANS PAYABLE Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards and List of Programs (the Schedule) includes the federal award activity of The Resource Connection of Amador and Calaveras Counties, Inc. under programs of the federal government for the year ended June 30, 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 The Resource Connection of Amador and Calaveras Counties, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of The Resource Connection of Amador and Calaveras Counties, Inc.Expenditures reported on 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 allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal expenditures for the U.S. Department Agriculture ("USDA") Community Facilities Loans and Grants Cluster program includes the balance of a loan outstanding. This particular loan was funded by a grant from USDA who passed through these funds in the form of a low-interest loan and for which the grantor imposes continuing compliance requirements. Total principal on this loan was $1,360,000 which was used to finance the food bank building for The Resource Connection of Amador and Calaveras Counties, Inc. Annual payments of principal and interest of $72,597 are due on this loan. Balance at July 1, 2021, $1,115,057, Repayments - Principal (23,801), Balance at June 30, 2022 $1,091,256.

Finding Details

Finding 2022-001: Reporting Department of Health and Human Services - AL #93.600 Grant Funding Source Grant Period Head Start #09CH011866-01 Department of Health and Human Services 12/01/2020 - 11/30/2021 Questioned costs: None How the questioned costs were computed: N/A Criteria: Section 75.341 Financial Reporting of 45 CFR Part 75 states that financial reports must be submitted with the frequency required by the terms and conditions of the Federal Award. Condition: During the audit, Wipfli LLP observed that the real property status report (SF-429) for the above mentioned grant was not filed on time. The SF-429 for the 09CH011866-01 grant for the period December 1, 2020 to November 30, 2021 was due on January 30, 2022, but was not filed until September 21, 2022. Cause: It is unusual for multiple SF-429's to be due at the same time. In addition, the funding source did not have the SF-429 available for completion for grant 09CH011866-01. It was the combination of these factors that caused this SF-429 to be filed late. Effect: As a result of the matters noted above, The Resource Connection of Amador and Calaveras Counties, Inc. was not in compliance with the reporting standard due to a significant deficiency in internal controls. Recommendation: We recommend The Resource Connection of Amador and Calaveras Counties, Inc. implement additional controls over reporting including, but not limited to, training staff on the Head Start reporting deadlines, to be in compliance with reporting requirements and deadlines. View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.
Finding 2022-001: Reporting Department of Health and Human Services - AL #93.600 Grant Funding Source Grant Period Head Start #09CH011866-01 Department of Health and Human Services 12/01/2020 - 11/30/2021 Questioned costs: None How the questioned costs were computed: N/A Criteria: Section 75.341 Financial Reporting of 45 CFR Part 75 states that financial reports must be submitted with the frequency required by the terms and conditions of the Federal Award. Condition: During the audit, Wipfli LLP observed that the real property status report (SF-429) for the above mentioned grant was not filed on time. The SF-429 for the 09CH011866-01 grant for the period December 1, 2020 to November 30, 2021 was due on January 30, 2022, but was not filed until September 21, 2022. Cause: It is unusual for multiple SF-429's to be due at the same time. In addition, the funding source did not have the SF-429 available for completion for grant 09CH011866-01. It was the combination of these factors that caused this SF-429 to be filed late. Effect: As a result of the matters noted above, The Resource Connection of Amador and Calaveras Counties, Inc. was not in compliance with the reporting standard due to a significant deficiency in internal controls. Recommendation: We recommend The Resource Connection of Amador and Calaveras Counties, Inc. implement additional controls over reporting including, but not limited to, training staff on the Head Start reporting deadlines, to be in compliance with reporting requirements and deadlines. View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.