FAC Explorer

Audit 29577

FY End
2022-06-30
Total Expended
$1.69M
Findings
2
Programs
1
Organization: Hope House, Inc. (CA)
Year: 2022 Accepted: 2023-01-09
Auditor: Davis Farr LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
34051 2022-001 Significant Deficiency - A
610493 2022-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1.69M Yes 1

Contacts

Name Title Type
YH4MGH52KFC8 Nay Ung Auditee
7147767490 Jennifer Farr Auditor
No contacts on file

Notes to SEFA

Accounting Policies: (a)Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards for the Block Grants for Prevention and Treatment of Substance Abuse Program includes the federal grant activity of Hope House, Inc. under programs of the federal government for the year ended June 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 Hope House, it is not intended to and does not present the financial position, changes in net assets or cash flows of Hope House. Hope House did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance.(b)Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures for part of the year are recognized following the cost principles contained in Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards wherein certain types of expenditures are not allowable or are limited as to reimbursement. (c) SubrecipientsThere were no payments made to subrecipients in 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
2022-001: Residential Treatment Services ? Allowable Costs Federal Agency: Department of Health and Human Services CFDA No.: 93.959 Federal Program: Block Grants for Prevention and Treatment of Substance Abuse Federal Award Program No.: H2810DEZ and H2810DFZ Federal Award Year: 2022 Control Category: Allowable Costs Questioned Costs: $0.00 Criteria: 2 CFR 200.430, Compensation ? personal services, states, in part: ?(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated?? Condition: During our review of payroll costs for the year ended June 30, 2022, we noted four instances where the employee did not have a personnel action form to document the change in their pay grade for the pay period tested. Other employees did not have an initial personnel action form to show the pay grade at the time of hire. Cause: Hope House management noted that not completing initial documentation at the employee?s hire date caused a deficiency in maintaining supporting documentation for merit increases. Effect: We were unable to determine if the amount paid to the employee was approved by management. Questioned Costs: $0.00 Recommendation: We recommend that Hope House prepare and maintain a copy of each employee's initial compensation and merit increase.
Finding 2022-001
2022-001: Residential Treatment Services ? Allowable Costs Federal Agency: Department of Health and Human Services CFDA No.: 93.959 Federal Program: Block Grants for Prevention and Treatment of Substance Abuse Federal Award Program No.: H2810DEZ and H2810DFZ Federal Award Year: 2022 Control Category: Allowable Costs Questioned Costs: $0.00 Criteria: 2 CFR 200.430, Compensation ? personal services, states, in part: ?(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated?? Condition: During our review of payroll costs for the year ended June 30, 2022, we noted four instances where the employee did not have a personnel action form to document the change in their pay grade for the pay period tested. Other employees did not have an initial personnel action form to show the pay grade at the time of hire. Cause: Hope House management noted that not completing initial documentation at the employee?s hire date caused a deficiency in maintaining supporting documentation for merit increases. Effect: We were unable to determine if the amount paid to the employee was approved by management. Questioned Costs: $0.00 Recommendation: We recommend that Hope House prepare and maintain a copy of each employee's initial compensation and merit increase.