FAC Explorer

Audit 291098

FY End
2022-12-31
Total Expended
$2.82M
Findings
2
Programs
2
Organization: Hands of Healing Residential Treatment Center, Inc. (TX)
Year: 2022 Accepted: 2024-02-19
Auditor: Doeren Mayhew

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
369682 2022-001 Significant Deficiency - L
946124 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.676 Unaccompanied Alien Children Program $1.40M Yes 0
10.555 National School Lunch Program $52,374 - 0

Contacts

Name Title Type
S4AJQNVFDGC8 Victor Weetly Auditee
2814281872 Elissa Poswa Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hands of Healing Residential Treatment Center, Inc. (the Organization) for the year ended December 31, 2022. The information in the 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule have been prepared using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee elected to not use the 10% de minimis cost rate as indirect amounts were included within the contracts. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hands of Healing Residential Treatment Center, Inc. (the Organization) for the year ended December 31, 2022. The information in the 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hands of Healing Residential Treatment Center, Inc. (the Organization) for the year ended December 31, 2022. The information in the 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule have been prepared using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee elected to not use the 10% de minimis cost rate as indirect amounts were included within the contracts. Expenditures reported on the Schedule have been prepared using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 - Indirect Cost Rate Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hands of Healing Residential Treatment Center, Inc. (the Organization) for the year ended December 31, 2022. The information in the 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule have been prepared using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee elected to not use the 10% de minimis cost rate as indirect amounts were included within the contracts. The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-001
Information on the Federal Program: Assistance Listing Number 93.676 - Unaccompanied Alien Children Program. Criteria: The federal grant requires an annual audit of non-federal entities that expend $750,000 or more of Federal Financial Assistance in a fiscal year. The annual audit must be performed by an independent auditor and the reporting package (which includes the audit report) must be submitted to the Federal Audit Clearinghouse within nine months of the entity’s fiscal year-end or within 30 days after receipt of the audit report, if earlier. In addition, the federal grant contract requires both performance reports and financial reports be submitted within prescribed deadlines. Condition and Context: The Organization failed to submit the reporting package within nine months after the Organization’s fiscal year-end. In addition, the Annual Standard Form Performance Progress Report was not submitted by the prescribed deadline. Cause: This was the Organization’s first year meeting the $750,000 threshold that triggers the annual audit requirement. It was management’s understanding that the audit report was due nine months after the end of the federal government contract, rather than the Organization’s fiscal year-end. The Annual Standard Form Performance Progress Report that was due on September 30, 2023 and which was submitted October 10, 2023 was late due to the completion, review and approval of the report taking more time than anticipated. Effect or Potential Effect: Non-compliance with reporting and audit requirements could result in draw-down restrictions or suspension of federal funds. Questioned Costs: None. Recommendation: For governmental assistance, a process should be developed to monitor reporting and audit requirements, to ensure that reports and related audits are submitted in accordance with governmental requirements. Views of Responsible Officials and Planned Corrective Actions: Management understands it is the Organization’s responsibility to file the annual audit within the nine-month timeframe from the Organization’s fiscal year-end and adhere to specific reporting requirements of federal grant contracts. Management has put additional processes in place within the chain of command to ensure that reports are submitted timely by the due date. Staff tasked with completing the reports will also be coached on the importance of drafting the reports well in advance of the due date to give time for review, approval, and submittal by management.
Finding 2022-001
Information on the Federal Program: Assistance Listing Number 93.676 - Unaccompanied Alien Children Program. Criteria: The federal grant requires an annual audit of non-federal entities that expend $750,000 or more of Federal Financial Assistance in a fiscal year. The annual audit must be performed by an independent auditor and the reporting package (which includes the audit report) must be submitted to the Federal Audit Clearinghouse within nine months of the entity’s fiscal year-end or within 30 days after receipt of the audit report, if earlier. In addition, the federal grant contract requires both performance reports and financial reports be submitted within prescribed deadlines. Condition and Context: The Organization failed to submit the reporting package within nine months after the Organization’s fiscal year-end. In addition, the Annual Standard Form Performance Progress Report was not submitted by the prescribed deadline. Cause: This was the Organization’s first year meeting the $750,000 threshold that triggers the annual audit requirement. It was management’s understanding that the audit report was due nine months after the end of the federal government contract, rather than the Organization’s fiscal year-end. The Annual Standard Form Performance Progress Report that was due on September 30, 2023 and which was submitted October 10, 2023 was late due to the completion, review and approval of the report taking more time than anticipated. Effect or Potential Effect: Non-compliance with reporting and audit requirements could result in draw-down restrictions or suspension of federal funds. Questioned Costs: None. Recommendation: For governmental assistance, a process should be developed to monitor reporting and audit requirements, to ensure that reports and related audits are submitted in accordance with governmental requirements. Views of Responsible Officials and Planned Corrective Actions: Management understands it is the Organization’s responsibility to file the annual audit within the nine-month timeframe from the Organization’s fiscal year-end and adhere to specific reporting requirements of federal grant contracts. Management has put additional processes in place within the chain of command to ensure that reports are submitted timely by the due date. Staff tasked with completing the reports will also be coached on the importance of drafting the reports well in advance of the due date to give time for review, approval, and submittal by management.