FAC Explorer

Audit 291289

FY End
2023-06-30
Total Expended
$4.81M
Findings
2
Programs
7
Organization: Alliance for African Assistance, Inc. (CA)
Year: 2023 Accepted: 2024-02-20
Auditor: Clifford R Benn CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
369764 2023-001 - - C
946206 2023-001 - - C

Programs

ALN Program Spent Major Findings
93.567 Refugee and Entrant Assistance - Discretionary Grants $1.71M Yes 0
19.510 Refugees and Migrations, U.s. Refugee Admissions Program $1.19M Yes 0
93.576 Refgee and Entrant Assistance - Discretionary Grants, Refugee Educational and Savings Program $1.11M Yes 0
14.218 Community Development Block Grants/ Entitlement Grants $106,421 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $50,275 - 0
97.010 United States Citizenship and Immigration Services $47,541 - 0
21.009 Volunteer Income Tax Assistance Matching Grant Program $736 - 0

Contacts

Name Title Type
PN2VP795LLB9 Walter Lam Auditee
6192869052 Clifford Benn Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule of expenditure of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Both Rate Explanation: The auditee elected to use the 10% de minimis cost rate on two 93.576 program contracts. However, that method was not used for all of their 93.576 contracts or any other federally funded programs. The accompanying schedule of expenditures of federal awards includes the federal award activity of Alliance for African Assistance under programs of the federal government for the year ended June 30, 2023. The information in this schedule of expenditures of federal awards is presented in accordance with the requirements of the Uniform Guidance for Federal Awards. Because the schedule presents only a selected portion of the operations of Alliance for African Assistance, it is not intende to and does not present the financial position, changes in net assets, or cash flows of Alliance for African Assistance.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the schedule of expenditure of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Both Rate Explanation: The auditee elected to use the 10% de minimis cost rate on two 93.576 program contracts. However, that method was not used for all of their 93.576 contracts or any other federally funded programs. Expenditures reported on the schedule of expenditure of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Costs Accounting Policies: Expenditures reported on the schedule of expenditure of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Both Rate Explanation: The auditee elected to use the 10% de minimis cost rate on two 93.576 program contracts. However, that method was not used for all of their 93.576 contracts or any other federally funded programs. Alliance for African Assistance has elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance for Federal Awards.

Finding Details

Finding 2023-001
DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023-001 Refugee and Entrant Assistance - Discretionary Grants - Assistance Listing No. 93.576; Award No. 90RG0208-02-01; Award year ending September 30, 2023. Condition: The ageny's Refugee Achieving Individual Success Trough Economic Empowerment lending funds are not kept in a separate bank account. Criteria: ORR guidelines require that funds used for loan disbursement be kept in a separate bank account throughout the program period so that the funds can be independently maintained and tracked. Cause: While the agency did establish a separate account for it's three direct federally funded (93.576) programs, it failed to maintain a separate account for the loan disbursement funds. Effect: The amount of funds on hand related exclusively for the lending program is not readily determinable. Recommendation: The agency should establish procedures to ensure that federal program guidelines are specifically followed. The agency should be able to identify funds drawn and available for lending, loan loss reserves, and loan principal recovered. View of Responsible Officials and Planned Corrective Actions: The agency has acquired banking specific software which is currently being customized for our lending program. It was the intent of the agency to open the new separate bank account at the same time as the launch of the new software program. However, as of the end of the June 30, 2023, fiscal year the customization was not completed.
Finding 2023-001
DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023-001 Refugee and Entrant Assistance - Discretionary Grants - Assistance Listing No. 93.576; Award No. 90RG0208-02-01; Award year ending September 30, 2023. Condition: The ageny's Refugee Achieving Individual Success Trough Economic Empowerment lending funds are not kept in a separate bank account. Criteria: ORR guidelines require that funds used for loan disbursement be kept in a separate bank account throughout the program period so that the funds can be independently maintained and tracked. Cause: While the agency did establish a separate account for it's three direct federally funded (93.576) programs, it failed to maintain a separate account for the loan disbursement funds. Effect: The amount of funds on hand related exclusively for the lending program is not readily determinable. Recommendation: The agency should establish procedures to ensure that federal program guidelines are specifically followed. The agency should be able to identify funds drawn and available for lending, loan loss reserves, and loan principal recovered. View of Responsible Officials and Planned Corrective Actions: The agency has acquired banking specific software which is currently being customized for our lending program. It was the intent of the agency to open the new separate bank account at the same time as the launch of the new software program. However, as of the end of the June 30, 2023, fiscal year the customization was not completed.