FAC Explorer

Audit 293660

FY End
2022-12-31
Total Expended
$1.33M
Findings
4
Programs
1
Organization: Think of US (DC)
Year: 2022 Accepted: 2024-03-05
Auditor: Gelman Rosenberg & Freedman

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
372580 2022-001 Significant Deficiency Yes B
372581 2022-002 Significant Deficiency Yes I
949022 2022-001 Significant Deficiency Yes B
949023 2022-002 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
93.471 Title IV-E Kinship Navigator Program (a) $1.33M Yes 2

Contacts

Name Title Type
RTSLKKWTM4C5 Sixto Cancel Auditee
3234474495 Lindsay Dean Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A- 122, Cost Principles for Non-Profit Organizations, or 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of the Organization under programs of the Federal Government for the year ended December 31, 2022. Information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedule presents only a selected portion of the operations of the Organization; accordingly, 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: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A- 122, Cost Principles for Non-Profit Organizations, or 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A- 122, Cost Principles for Non-Profit Organizations, or 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 3. Reconciliation to Exhibit B Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A- 122, Cost Principles for Non-Profit Organizations, or 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Government grants and contracts per exhibit B $ 1,480,208 Less: Non-Federal revenue (152,148) EXPENDITURES OF FEDERAL AWARDS $ 1,328,060

Finding Details

Finding 2022-001
Finding 2022-001: Payroll Information on the Federal Program: 93.471 Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, paragraph 430 “Compensation – personal services” requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed, and that these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Additionally, these records must comply with established accounting policies and practices of the non-Federal entity. Condition: Subsequent to the completion of the 2021 audit, the Organization modified its timesheet process for employees that work on the Federal pass-through grant. The new methodology was in effect for the last two months of 2022. The time allocated is now based on actual time, and we were able to tie the amount calculated based on hours reported to the invoice submitted to the pass-through entity for the month. However, there was no direct audit trail to the amount in the general ledger (the GL allocation was posted for the quarter in total). In addition, if employees work over the time allowed by the budget the amount is manually adjusted down before allocation. Also, the supervisory approval of the timesheets is over a month report that lists only the names of the employees (does not show the hours reported). Cause: An allocation methodology based on actual timesheets was implemented at the end of 2022, but we identified certain recommended improvements. Effect or Potential Effect: The Organization could inadvertently mischarge salaries and wages to its various programs. Questioned Costs: Undetermined. Context: This is deemed to be systemic in nature. Identification as a Repeat Finding, if Applicable: See prior year 2021-001 Recommendation: We recommend that the Organization revisit the procedures in the current year to ensure that the time allocation can be easily verified (i.e. record the allocations on a monthly basis at a minimum, and maintain a schedule to reconcile amount per pay period to total entered in the general ledger). The Organization should be careful to document that if time allocated to the Federal project is manually reduced that is does not result in overcharging a different program. The approval of the timesheets should be on a report that shows the actual time that is being reviewed/approved.
Finding 2022-002
Finding 2022-002: Procurement Information on the Federal Program: 93.471 Criteria or Specific Requirement: CFR 200.320 specifies methods of procurement that must be used including competitive bidding where applicable, and limits the use of procurement by noncompetitive proposals to specific instances or situations including 1) the item is available only from a single source, 2) The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation, 3) the Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity, or 4) after solicitation of a number of sources, competition is determined inadequate. Condition: The Organization revisited their procurement policy following the completion of the fiscal year 2021 audit. As a result of the timing, vendors were hired prior to the integration of the updated procurement procedures and we noted instances where contractors were engaged in excess of the $10,000 procurement threshold, but adequate competitive bidding support was available. Cause: The Organization has not performed procedures in accordance with its procurement policies for certain purchases. Effect or Potential Effect: If procurement procedures are not followed, there is a risk that the Organization will not perform a proper evaluation of each element of cost to determine reasonableness. Questioned Costs: Undetermined Context: Our testwork consisted of statistical sampling as well as substantive testwork over various samples of expenditures, and were determined to be representative of the population for the fiscal year under audit. Identification as a Repeat Finding, if Applicable: See prior year finding 2021-005. Recommendation: We recommend that the Organization adhere to the current procurement guidelines, and also recommend that the Organization establish a form to document the procurement process, including bids received, conclusion, individuals involved and date.
Finding 2022-001
Finding 2022-001: Payroll Information on the Federal Program: 93.471 Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, paragraph 430 “Compensation – personal services” requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed, and that these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Additionally, these records must comply with established accounting policies and practices of the non-Federal entity. Condition: Subsequent to the completion of the 2021 audit, the Organization modified its timesheet process for employees that work on the Federal pass-through grant. The new methodology was in effect for the last two months of 2022. The time allocated is now based on actual time, and we were able to tie the amount calculated based on hours reported to the invoice submitted to the pass-through entity for the month. However, there was no direct audit trail to the amount in the general ledger (the GL allocation was posted for the quarter in total). In addition, if employees work over the time allowed by the budget the amount is manually adjusted down before allocation. Also, the supervisory approval of the timesheets is over a month report that lists only the names of the employees (does not show the hours reported). Cause: An allocation methodology based on actual timesheets was implemented at the end of 2022, but we identified certain recommended improvements. Effect or Potential Effect: The Organization could inadvertently mischarge salaries and wages to its various programs. Questioned Costs: Undetermined. Context: This is deemed to be systemic in nature. Identification as a Repeat Finding, if Applicable: See prior year 2021-001 Recommendation: We recommend that the Organization revisit the procedures in the current year to ensure that the time allocation can be easily verified (i.e. record the allocations on a monthly basis at a minimum, and maintain a schedule to reconcile amount per pay period to total entered in the general ledger). The Organization should be careful to document that if time allocated to the Federal project is manually reduced that is does not result in overcharging a different program. The approval of the timesheets should be on a report that shows the actual time that is being reviewed/approved.
Finding 2022-002
Finding 2022-002: Procurement Information on the Federal Program: 93.471 Criteria or Specific Requirement: CFR 200.320 specifies methods of procurement that must be used including competitive bidding where applicable, and limits the use of procurement by noncompetitive proposals to specific instances or situations including 1) the item is available only from a single source, 2) The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation, 3) the Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity, or 4) after solicitation of a number of sources, competition is determined inadequate. Condition: The Organization revisited their procurement policy following the completion of the fiscal year 2021 audit. As a result of the timing, vendors were hired prior to the integration of the updated procurement procedures and we noted instances where contractors were engaged in excess of the $10,000 procurement threshold, but adequate competitive bidding support was available. Cause: The Organization has not performed procedures in accordance with its procurement policies for certain purchases. Effect or Potential Effect: If procurement procedures are not followed, there is a risk that the Organization will not perform a proper evaluation of each element of cost to determine reasonableness. Questioned Costs: Undetermined Context: Our testwork consisted of statistical sampling as well as substantive testwork over various samples of expenditures, and were determined to be representative of the population for the fiscal year under audit. Identification as a Repeat Finding, if Applicable: See prior year finding 2021-005. Recommendation: We recommend that the Organization adhere to the current procurement guidelines, and also recommend that the Organization establish a form to document the procurement process, including bids received, conclusion, individuals involved and date.