Audit 291117

FY End
2023-09-30
Total Expended
$9.47M
Findings
10
Programs
8
Year: 2023 Accepted: 2024-02-20

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
369685 2023-001 Significant Deficiency Yes L
369686 2023-002 Significant Deficiency - I
369687 2023-001 Significant Deficiency Yes L
369688 2023-002 Significant Deficiency - I
369689 2023-002 Significant Deficiency - I
946127 2023-001 Significant Deficiency Yes L
946128 2023-002 Significant Deficiency - I
946129 2023-001 Significant Deficiency Yes L
946130 2023-002 Significant Deficiency - I
946131 2023-002 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
93.558 Temporary Assistance for Needy Families $384,000 - 0
17.259 Wia Youth Activities $348,241 - 0
10.558 Child and Adult Care Food Program $293,884 Yes 1
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $228,948 - 0
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants $169,819 - 0
93.600 Head Start $147,637 Yes 2
17.258 Wia Adult Program $11,125 - 0
93.U01 Grant Management for Covid Relief Funds $398 - 0

Contacts

Name Title Type
RJDNWJHNSX98 Allison Hayes Auditee
3342704100 William Cox, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 3 Accounting Policies: Family Guidance Center of Alabama, Inc. follows the accrual basis of accounting in preparing this schedule. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. This method is consistent with the preparation of the Center's financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Family Guidance Cetner of Alabama, Inc. recognized $193,174 of noncash rent income and expense related to the amortization of major renovations costs incurred in lieu of monthly rental payments for certain leased properties. These costs were considered expenditures at time of renovation and are not included in the amounts reported on the SEFA.

Finding Details

Criteria: The grant requires annual reporting on properties held under federal interest. Condition: The center failed to submit timely reports for the grant periods ending July 31, 2023 and 2022. Cause: Property reports were a new requirement resulting from the transfer of land and buildings to the Center during grant period July 31, 2022. Requirement was discovered during the 2022 audit. No follow up with grantor regarding the process for submitting reports occurred until beginning of 2023 audit. The Center was unable to prepare the required report prior to the deadline. Effect: The Center was required to file the reports late to rectify the matter. Recommendation: We recommend management review current controls over reporting to ensure timeliness of report submissions.
Criteria: an entity must have and use documented procurement policies consistent with Federal, State, and local laws, regulations, and standards for the acquisition of property or services required under a Federal award or subaward. The procedures must confirm to the procurement standards identified in CFR § 200.317 through 200.327. Condition: The Center maintans specific grant manuals and guidelines as its written policies; however, they have inconsistently or inadequately been using those manuals and guidelines. The Center made two large purchases under the Head Start grant exceeding micro-purchase thresholds without obtaining price or rate quotations from an adequate number of qualified sources. Cause: Thresholds are often considered based on unit price instead of the aggregate purchase amount based on certain grantor requirements to obtain written approval for purchases based on unit price. In addition, procedures are considered unnecessary by management for purchases falling within the grantor approved budget amounts. Effect: Failure to follow appropriate procurement procedures could result in excess procurement costs being disallowed or subject the entity to possible claims. It was determined that the items procured were reasonable in costs with other vendors. Recommendation: We recommend management assess and adhere to the internally developed policy for all procurements using Federally sourced funds.
Criteria: The grant requires annual reporting on properties held under federal interest. Condition: The center failed to submit timely reports for the grant periods ending July 31, 2023 and 2022. Cause: Property reports were a new requirement resulting from the transfer of land and buildings to the Center during grant period July 31, 2022. Requirement was discovered during the 2022 audit. No follow up with grantor regarding the process for submitting reports occurred until beginning of 2023 audit. The Center was unable to prepare the required report prior to the deadline. Effect: The Center was required to file the reports late to rectify the matter. Recommendation: We recommend management review current controls over reporting to ensure timeliness of report submissions.
Criteria: an entity must have and use documented procurement policies consistent with Federal, State, and local laws, regulations, and standards for the acquisition of property or services required under a Federal award or subaward. The procedures must confirm to the procurement standards identified in CFR § 200.317 through 200.327. Condition: The Center maintans specific grant manuals and guidelines as its written policies; however, they have inconsistently or inadequately been using those manuals and guidelines. The Center made two large purchases under the Head Start grant exceeding micro-purchase thresholds without obtaining price or rate quotations from an adequate number of qualified sources. Cause: Thresholds are often considered based on unit price instead of the aggregate purchase amount based on certain grantor requirements to obtain written approval for purchases based on unit price. In addition, procedures are considered unnecessary by management for purchases falling within the grantor approved budget amounts. Effect: Failure to follow appropriate procurement procedures could result in excess procurement costs being disallowed or subject the entity to possible claims. It was determined that the items procured were reasonable in costs with other vendors. Recommendation: We recommend management assess and adhere to the internally developed policy for all procurements using Federally sourced funds.
Criteria: an entity must have and use documented procurement policies consistent with Federal, State, and local laws, regulations, and standards for the acquisition of property or services required under a Federal award or subaward. The procedures must confirm to the procurement standards identified in CFR § 200.317 through 200.327. Condition: The Center maintans specific grant manuals and guidelines as its written policies; however, they have inconsistently or inadequately been using those manuals and guidelines. The Center made two large purchases under the Head Start grant exceeding micro-purchase thresholds without obtaining price or rate quotations from an adequate number of qualified sources. Cause: Thresholds are often considered based on unit price instead of the aggregate purchase amount based on certain grantor requirements to obtain written approval for purchases based on unit price. In addition, procedures are considered unnecessary by management for purchases falling within the grantor approved budget amounts. Effect: Failure to follow appropriate procurement procedures could result in excess procurement costs being disallowed or subject the entity to possible claims. It was determined that the items procured were reasonable in costs with other vendors. Recommendation: We recommend management assess and adhere to the internally developed policy for all procurements using Federally sourced funds.
Criteria: The grant requires annual reporting on properties held under federal interest. Condition: The center failed to submit timely reports for the grant periods ending July 31, 2023 and 2022. Cause: Property reports were a new requirement resulting from the transfer of land and buildings to the Center during grant period July 31, 2022. Requirement was discovered during the 2022 audit. No follow up with grantor regarding the process for submitting reports occurred until beginning of 2023 audit. The Center was unable to prepare the required report prior to the deadline. Effect: The Center was required to file the reports late to rectify the matter. Recommendation: We recommend management review current controls over reporting to ensure timeliness of report submissions.
Criteria: an entity must have and use documented procurement policies consistent with Federal, State, and local laws, regulations, and standards for the acquisition of property or services required under a Federal award or subaward. The procedures must confirm to the procurement standards identified in CFR § 200.317 through 200.327. Condition: The Center maintans specific grant manuals and guidelines as its written policies; however, they have inconsistently or inadequately been using those manuals and guidelines. The Center made two large purchases under the Head Start grant exceeding micro-purchase thresholds without obtaining price or rate quotations from an adequate number of qualified sources. Cause: Thresholds are often considered based on unit price instead of the aggregate purchase amount based on certain grantor requirements to obtain written approval for purchases based on unit price. In addition, procedures are considered unnecessary by management for purchases falling within the grantor approved budget amounts. Effect: Failure to follow appropriate procurement procedures could result in excess procurement costs being disallowed or subject the entity to possible claims. It was determined that the items procured were reasonable in costs with other vendors. Recommendation: We recommend management assess and adhere to the internally developed policy for all procurements using Federally sourced funds.
Criteria: The grant requires annual reporting on properties held under federal interest. Condition: The center failed to submit timely reports for the grant periods ending July 31, 2023 and 2022. Cause: Property reports were a new requirement resulting from the transfer of land and buildings to the Center during grant period July 31, 2022. Requirement was discovered during the 2022 audit. No follow up with grantor regarding the process for submitting reports occurred until beginning of 2023 audit. The Center was unable to prepare the required report prior to the deadline. Effect: The Center was required to file the reports late to rectify the matter. Recommendation: We recommend management review current controls over reporting to ensure timeliness of report submissions.
Criteria: an entity must have and use documented procurement policies consistent with Federal, State, and local laws, regulations, and standards for the acquisition of property or services required under a Federal award or subaward. The procedures must confirm to the procurement standards identified in CFR § 200.317 through 200.327. Condition: The Center maintans specific grant manuals and guidelines as its written policies; however, they have inconsistently or inadequately been using those manuals and guidelines. The Center made two large purchases under the Head Start grant exceeding micro-purchase thresholds without obtaining price or rate quotations from an adequate number of qualified sources. Cause: Thresholds are often considered based on unit price instead of the aggregate purchase amount based on certain grantor requirements to obtain written approval for purchases based on unit price. In addition, procedures are considered unnecessary by management for purchases falling within the grantor approved budget amounts. Effect: Failure to follow appropriate procurement procedures could result in excess procurement costs being disallowed or subject the entity to possible claims. It was determined that the items procured were reasonable in costs with other vendors. Recommendation: We recommend management assess and adhere to the internally developed policy for all procurements using Federally sourced funds.
Criteria: an entity must have and use documented procurement policies consistent with Federal, State, and local laws, regulations, and standards for the acquisition of property or services required under a Federal award or subaward. The procedures must confirm to the procurement standards identified in CFR § 200.317 through 200.327. Condition: The Center maintans specific grant manuals and guidelines as its written policies; however, they have inconsistently or inadequately been using those manuals and guidelines. The Center made two large purchases under the Head Start grant exceeding micro-purchase thresholds without obtaining price or rate quotations from an adequate number of qualified sources. Cause: Thresholds are often considered based on unit price instead of the aggregate purchase amount based on certain grantor requirements to obtain written approval for purchases based on unit price. In addition, procedures are considered unnecessary by management for purchases falling within the grantor approved budget amounts. Effect: Failure to follow appropriate procurement procedures could result in excess procurement costs being disallowed or subject the entity to possible claims. It was determined that the items procured were reasonable in costs with other vendors. Recommendation: We recommend management assess and adhere to the internally developed policy for all procurements using Federally sourced funds.