FAC Explorer

Audit 292783

FY End
2022-09-30
Total Expended
$121.81M
Findings
8
Programs
19
Organization: Telamon Corporation (NC)
Year: 2022 Accepted: 2024-02-29
Auditor: Rsm US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
371159 2022-003 - - L
371160 2022-003 - - L
371161 2022-004 - - B
371162 2022-004 - - B
947601 2022-003 - - L
947602 2022-003 - - L
947603 2022-004 - - B
947604 2022-004 - - B

Programs

ALN Program Spent Major Findings
21.023 Emergency Rental Assistance Program $38.76M Yes 2
17.264 National Farmworker Jobs Program $1.37M - 0
14.169 Housing Counseling Assistance Program $498,807 - 0
14.267 Continuum of Care Program $473,627 - 0
17.259 Wia Youth Activities $288,319 - 0
93.600 Head Start $242,999 - 0
93.568 Low-Income Home Energy Assistance $233,169 - 0
64.033 Va Supportive Services for Veteran Families Program $196,046 - 0
93.569 Community Services Block Grant $154,087 - 0
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $134,063 - 0
64.024 Va Homeless Providers Grant and Per Diem Program $117,386 - 0
10.558 Child and Adult Care Food Program $85,240 - 0
14.416 Education and Outreach Initiatives $43,833 - 0
10.311 Beginning Farmer and Rancher Development Program $34,242 - 0
21.010 Financial Education and Counseling Pilot Program $13,304 - 0
81.042 Weatherization Assistance for Low-Income Persons $7,300 - 0
17.805 Homeless Veterans Reintegration Project $7,237 - 0
84.011 Migrant Education_state Grant Program $4,500 - 0
97.024 Emergency Food and Shelter National Board Program $2,981 - 0

Contacts

Name Title Type
RSXGKBMLSKH3 Michael Vazquez Auditee
9192398115 Matthew Hemelt Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 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 expenditures are not allowable or are limited to reimbursements. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization applied for and received a federally approved indirect cost rate of 12.20%. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Telamon Corporation and Subsidiaries (the Organization) under programs of the federal government for the year ended September 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 Organization, it is not intended to, and does not, present the financial position, change in net assets or cash flows of the Organization.
Title: Subrecipients Accounting Policies: 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 expenditures are not allowable or are limited to reimbursements. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization applied for and received a federally approved indirect cost rate of 12.20%. There are no amounts passed through to subrecipients for the year ended September 30, 2022.
Title: In-Kind Contributions Accounting Policies: 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 expenditures are not allowable or are limited to reimbursements. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization applied for and received a federally approved indirect cost rate of 12.20%. The value of the federal awards expended in the form of noncash assistance for the year ended September 30, 2022, was $3,870,633.
Title: Indirect Cost Rate Accounting Policies: 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 expenditures are not allowable or are limited to reimbursements. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization applied for and received a federally approved indirect cost rate of 12.20%. The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization applied for and received a federally approved indirect cost rate of 12.20%.
Title: Summary of Significant Accounting Policies Accounting Policies: 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 expenditures are not allowable or are limited to reimbursements. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization applied for and received a federally approved indirect cost rate of 12.20%. 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 expenditures are not allowable or are limited to reimbursements.
Title: Note to Schedule of Findings and Questioned Costs Accounting Policies: 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 expenditures are not allowable or are limited to reimbursements. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization applied for and received a federally approved indirect cost rate of 12.20%. The dollar threshold used to distinguish between Type A and B programs in Section I. Summary of Independent Auditor’s Results originally reported as $3,654,225 has been corrected to $3,000,000. The change in threshold did not result in identification of additional major programs.

Finding Details

Finding 2022-003
Finding 2022-003 – Late Audit Reporting U.S. Department of Treasury Passed through the State of North Carolina Program Name: COVID-19: Emergency Rental Assistance ALN # 21.023 Nonmaterial Noncompliance – Reporting Criteria: Under 45 CFR Part 75.512, the Uniform Guidance requires that audits are submitted by the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: The Organization did not complete and submit their audit for the year ended September 30, 2022 to the federal clearinghouse until January 2024. Effect: The late filing could potentially impact future funding from government agencies. Cause: Significant delays stemming from Finding 2022-001 caused the required audit procedures and the ultimate completion date to extend beyond the regulatory deadline. Recommendation: We recommend that management implement procedures and controls as described in Finding 2022-001 to ensure future audits are completed timely. Repeat finding: No. Views of responsible officials and planned corrective actions: See attached letter. Reportable questioned costs: None
Finding 2022-003
Finding 2022-003 – Late Audit Reporting U.S. Department of Treasury Passed through the State of North Carolina Program Name: COVID-19: Emergency Rental Assistance ALN # 21.023 Nonmaterial Noncompliance – Reporting Criteria: Under 45 CFR Part 75.512, the Uniform Guidance requires that audits are submitted by the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: The Organization did not complete and submit their audit for the year ended September 30, 2022 to the federal clearinghouse until January 2024. Effect: The late filing could potentially impact future funding from government agencies. Cause: Significant delays stemming from Finding 2022-001 caused the required audit procedures and the ultimate completion date to extend beyond the regulatory deadline. Recommendation: We recommend that management implement procedures and controls as described in Finding 2022-001 to ensure future audits are completed timely. Repeat finding: No. Views of responsible officials and planned corrective actions: See attached letter. Reportable questioned costs: None
Finding 2022-004
Finding 2022-004 – Indirect Cost and Fringe Benefit Rates U.S. Department of Treasury Passed through the State of North Carolina Program Name: COVID-19: Emergency Rental Assistance ALN # 21.023 Nonmaterial Noncompliance – Allowable Costs Criteria: Sections 200.414 and 200.431 of Subpart E of the Uniform Guidance require that indirect costs and fringe benefits costs charged to federal programs must be reasonable and allocated to the federal program based on a written policy, and self-insured expenses must be based on historical experience and reasonable assumptions. Condition: The Organization did not perform a timely calculation or review of the indirect rate based on actual expenses compared to the provisional rate being used, in order to determine if the amount being charged resulted in an adjustment to the billing for the program. Effect: The lack of timely calculations or reviews could result in having to reconcile funds due to or from the federal government a significant amount of indirect costs that were overbilled or underbilled.   Cause: The expenses allocated and charged to the program based on provisional rates for both indirect and fringe benefit costs exceeded the actual expenses reported in the trial balance and allocated to the program. Recommendation: We recommend the Organization review the indirect and fringe benefit cost rates at least annually and perform reconciliations between the provisional and actual rates to determine if amounts billed to the program should be adjusted. Repeat finding: No. Views of responsible officials and planned corrective actions: See attached letter. Reportable questioned costs: $60,031
Finding 2022-004
Finding 2022-004 – Indirect Cost and Fringe Benefit Rates U.S. Department of Treasury Passed through the State of North Carolina Program Name: COVID-19: Emergency Rental Assistance ALN # 21.023 Nonmaterial Noncompliance – Allowable Costs Criteria: Sections 200.414 and 200.431 of Subpart E of the Uniform Guidance require that indirect costs and fringe benefits costs charged to federal programs must be reasonable and allocated to the federal program based on a written policy, and self-insured expenses must be based on historical experience and reasonable assumptions. Condition: The Organization did not perform a timely calculation or review of the indirect rate based on actual expenses compared to the provisional rate being used, in order to determine if the amount being charged resulted in an adjustment to the billing for the program. Effect: The lack of timely calculations or reviews could result in having to reconcile funds due to or from the federal government a significant amount of indirect costs that were overbilled or underbilled.   Cause: The expenses allocated and charged to the program based on provisional rates for both indirect and fringe benefit costs exceeded the actual expenses reported in the trial balance and allocated to the program. Recommendation: We recommend the Organization review the indirect and fringe benefit cost rates at least annually and perform reconciliations between the provisional and actual rates to determine if amounts billed to the program should be adjusted. Repeat finding: No. Views of responsible officials and planned corrective actions: See attached letter. Reportable questioned costs: $60,031
Finding 2022-003
Finding 2022-003 – Late Audit Reporting U.S. Department of Treasury Passed through the State of North Carolina Program Name: COVID-19: Emergency Rental Assistance ALN # 21.023 Nonmaterial Noncompliance – Reporting Criteria: Under 45 CFR Part 75.512, the Uniform Guidance requires that audits are submitted by the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: The Organization did not complete and submit their audit for the year ended September 30, 2022 to the federal clearinghouse until January 2024. Effect: The late filing could potentially impact future funding from government agencies. Cause: Significant delays stemming from Finding 2022-001 caused the required audit procedures and the ultimate completion date to extend beyond the regulatory deadline. Recommendation: We recommend that management implement procedures and controls as described in Finding 2022-001 to ensure future audits are completed timely. Repeat finding: No. Views of responsible officials and planned corrective actions: See attached letter. Reportable questioned costs: None
Finding 2022-003
Finding 2022-003 – Late Audit Reporting U.S. Department of Treasury Passed through the State of North Carolina Program Name: COVID-19: Emergency Rental Assistance ALN # 21.023 Nonmaterial Noncompliance – Reporting Criteria: Under 45 CFR Part 75.512, the Uniform Guidance requires that audits are submitted by the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: The Organization did not complete and submit their audit for the year ended September 30, 2022 to the federal clearinghouse until January 2024. Effect: The late filing could potentially impact future funding from government agencies. Cause: Significant delays stemming from Finding 2022-001 caused the required audit procedures and the ultimate completion date to extend beyond the regulatory deadline. Recommendation: We recommend that management implement procedures and controls as described in Finding 2022-001 to ensure future audits are completed timely. Repeat finding: No. Views of responsible officials and planned corrective actions: See attached letter. Reportable questioned costs: None
Finding 2022-004
Finding 2022-004 – Indirect Cost and Fringe Benefit Rates U.S. Department of Treasury Passed through the State of North Carolina Program Name: COVID-19: Emergency Rental Assistance ALN # 21.023 Nonmaterial Noncompliance – Allowable Costs Criteria: Sections 200.414 and 200.431 of Subpart E of the Uniform Guidance require that indirect costs and fringe benefits costs charged to federal programs must be reasonable and allocated to the federal program based on a written policy, and self-insured expenses must be based on historical experience and reasonable assumptions. Condition: The Organization did not perform a timely calculation or review of the indirect rate based on actual expenses compared to the provisional rate being used, in order to determine if the amount being charged resulted in an adjustment to the billing for the program. Effect: The lack of timely calculations or reviews could result in having to reconcile funds due to or from the federal government a significant amount of indirect costs that were overbilled or underbilled.   Cause: The expenses allocated and charged to the program based on provisional rates for both indirect and fringe benefit costs exceeded the actual expenses reported in the trial balance and allocated to the program. Recommendation: We recommend the Organization review the indirect and fringe benefit cost rates at least annually and perform reconciliations between the provisional and actual rates to determine if amounts billed to the program should be adjusted. Repeat finding: No. Views of responsible officials and planned corrective actions: See attached letter. Reportable questioned costs: $60,031
Finding 2022-004
Finding 2022-004 – Indirect Cost and Fringe Benefit Rates U.S. Department of Treasury Passed through the State of North Carolina Program Name: COVID-19: Emergency Rental Assistance ALN # 21.023 Nonmaterial Noncompliance – Allowable Costs Criteria: Sections 200.414 and 200.431 of Subpart E of the Uniform Guidance require that indirect costs and fringe benefits costs charged to federal programs must be reasonable and allocated to the federal program based on a written policy, and self-insured expenses must be based on historical experience and reasonable assumptions. Condition: The Organization did not perform a timely calculation or review of the indirect rate based on actual expenses compared to the provisional rate being used, in order to determine if the amount being charged resulted in an adjustment to the billing for the program. Effect: The lack of timely calculations or reviews could result in having to reconcile funds due to or from the federal government a significant amount of indirect costs that were overbilled or underbilled.   Cause: The expenses allocated and charged to the program based on provisional rates for both indirect and fringe benefit costs exceeded the actual expenses reported in the trial balance and allocated to the program. Recommendation: We recommend the Organization review the indirect and fringe benefit cost rates at least annually and perform reconciliations between the provisional and actual rates to determine if amounts billed to the program should be adjusted. Repeat finding: No. Views of responsible officials and planned corrective actions: See attached letter. Reportable questioned costs: $60,031