FAC Explorer

Audit 294126

FY End
2023-06-30
Total Expended
$2.72M
Findings
2
Programs
13
Organization: Latino Network (OR)
Year: 2023 Accepted: 2024-03-07
Auditor: Kern & Thompson LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
374462 2023-002 Significant Deficiency - B
950904 2023-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
14.231 Emergency Solutions Grant Program $567,918 Yes 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $228,016 - 0
93.569 Community Services Block Grant $193,933 - 0
93.297 Teenage Pregnancy Prevention Program $127,016 - 0
93.667 Social Services Block Grant $110,161 - 0
93.354 Public Health Crisis Response Awards $80,667 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $62,078 - 0
93.556 Promoting Safe and Stable Families $60,051 - 0
17.258 Wia Adult Program $59,693 - 0
93.499 Low-Income Home Energy Assistance $38,303 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $22,960 Yes 0
93.568 Low-Income Home Energy Assistance $20,809 - 0
14.218 Cdbg-Cv Rental and Utility Assistance $18,869 - 0

Contacts

Name Title Type
CHHLUKTBFLL1 Rambod Behnam Auditee
5032836881 Kristin Brooks Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Latino Network. The information in this schedule is presented in accordance with the requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), or other requirements of Federal agencies such as the Department of Treasury. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Latino Network. has not used the 10% de minimis indirect cost rate under the Uniform Guidance. Basis of Presentation
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Latino Network. The information in this schedule is presented in accordance with the requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), or other requirements of Federal agencies such as the Department of Treasury. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Latino Network. has not used the 10% de minimis indirect cost rate under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Latino Network. The information in this schedule is presented in accordance with the requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), or other requirements of Federal agencies such as the Department of Treasury. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements.
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Latino Network. The information in this schedule is presented in accordance with the requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), or other requirements of Federal agencies such as the Department of Treasury. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Latino Network. has not used the 10% de minimis indirect cost rate under the Uniform Guidance. Basis of Accounting
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Latino Network. The information in this schedule is presented in accordance with the requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), or other requirements of Federal agencies such as the Department of Treasury. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Latino Network. has not used the 10% de minimis indirect cost rate under the Uniform Guidance. The expenditures for each federal financial assistance programs are presented in the schedule on the accrual basis of accounting.
Title: CONTINGENCIES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Latino Network. The information in this schedule is presented in accordance with the requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), or other requirements of Federal agencies such as the Department of Treasury. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Latino Network. has not used the 10% de minimis indirect cost rate under the Uniform Guidance. The amounts expended by Latino Network under federal programs are subject to audit by governmental agencies. Latino Network believes that any liabilities arising from such audits will not have a material impact on Latino Network’s financial position.
Title: Major and Nonmajor Federal Financial Assistance Programs Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Latino Network. The information in this schedule is presented in accordance with the requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), or other requirements of Federal agencies such as the Department of Treasury. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Latino Network. has not used the 10% de minimis indirect cost rate under the Uniform Guidance. The program titles and Assistance Listing (“AL”) numbers were obtained from the federal or passthrough grantor or the Sam.gov.

Finding Details

Finding 2023-002
Federal Agency: United States Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds AL Number: 21.027 Significant Deficiency in Internal Control over Compliance - Allowable Costs Finding 2023-002 Finding – Federal Award Federal Agency: United States Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds AL Number: 21.027 Type: Significant Deficiency in Internal Control over Compliance - Allowable Costs. Criteria/Requirement: Costs attributable to common or joint use of facilities or services by Treasury programs and other programs must be fairly allocated among the various programs that utilize such services (42 USC 9839(c)). Condition: Appropriate supporting documentation was not maintained to support expenditures allocated to federal programs when the allocation was changed subsequent to the original journal entry. We identified 2 of the 25 expenditures tested in our statistically valid sample that did not agree with the documented cost allocation plan. Upon inquiry, management noted that the allocation had to be corrected in a subsequent entry, but documentation of the approved change was not maintained. Context: Expenditures should be charged to the proper programs and allocated in accordance with the cost allocation plan and documentation of approval of any subsequent change to the allocation plan should be maintained. Cause: Lack of oversight of the cost allocation processes and procedures within the Organization resulted in no documentation of approval for costs allocated between programs. Effect: Grant expenses charged to programs were not supported by documentation of approval. Questioned Costs: None. Recommendation: We recommend management implement procedures to ensure that costs charged to the grant follow the approved cost allocation and documentation of approved changes to allocations be maintained. Views of responsible official: Management concurs with the auditors’ finding and will enhance documentation protocols, standardize the approval process, and have regular reviewing and monitoring.
Finding 2023-002
Federal Agency: United States Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds AL Number: 21.027 Significant Deficiency in Internal Control over Compliance - Allowable Costs Finding 2023-002 Finding – Federal Award Federal Agency: United States Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds AL Number: 21.027 Type: Significant Deficiency in Internal Control over Compliance - Allowable Costs. Criteria/Requirement: Costs attributable to common or joint use of facilities or services by Treasury programs and other programs must be fairly allocated among the various programs that utilize such services (42 USC 9839(c)). Condition: Appropriate supporting documentation was not maintained to support expenditures allocated to federal programs when the allocation was changed subsequent to the original journal entry. We identified 2 of the 25 expenditures tested in our statistically valid sample that did not agree with the documented cost allocation plan. Upon inquiry, management noted that the allocation had to be corrected in a subsequent entry, but documentation of the approved change was not maintained. Context: Expenditures should be charged to the proper programs and allocated in accordance with the cost allocation plan and documentation of approval of any subsequent change to the allocation plan should be maintained. Cause: Lack of oversight of the cost allocation processes and procedures within the Organization resulted in no documentation of approval for costs allocated between programs. Effect: Grant expenses charged to programs were not supported by documentation of approval. Questioned Costs: None. Recommendation: We recommend management implement procedures to ensure that costs charged to the grant follow the approved cost allocation and documentation of approved changes to allocations be maintained. Views of responsible official: Management concurs with the auditors’ finding and will enhance documentation protocols, standardize the approval process, and have regular reviewing and monitoring.