FAC Explorer

Audit 295925

FY End
2023-06-30
Total Expended
$3.14M
Findings
6
Programs
14
Organization: Volunteers of America, Utah (UT)
Year: 2023 Accepted: 2024-03-19
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
381207 2023-001 Significant Deficiency - I
381208 2023-002 Significant Deficiency - I
381209 2023-003 Significant Deficiency - H
957649 2023-001 Significant Deficiency - I
957650 2023-002 Significant Deficiency - I
957651 2023-003 Significant Deficiency - H

Programs

ALN Program Spent Major Findings
93.696 Certified Community Behavioral Health Clinic Expansion Grants $569,059 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $510,872 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $214,522 - 0
16.726 Juvenile Mentoring Program $206,525 - 0
93.958 Block Grants for Community Mental Health Services $69,635 Yes 0
14.231 Emergency Solutions Grant Program $65,048 Yes 1
14.267 Continuum of Care Program $62,787 - 0
14.218 Community Development Block Grants/entitlement Grants $55,367 - 0
93.550 Transitional Living for Homeless Youth $45,764 - 0
93.150 Projects for Assistance in Transition From Homelessness (path) $43,000 - 0
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $39,735 - 0
97.024 Emergency Food and Shelter National Board Program $32,120 - 0
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $18,532 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $6,570 - 0

Contacts

Name Title Type
RLJMTVGN2M63 Christa Beauchat Auditee
8018754592 Sam Lake 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 types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient during the year ended June 30, 2023. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Volunteers of America, Utah (the Organization) under programs of the federal government for the year ended June 30, 2023. The information is presented in accordance with 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, changes in net assets, or cash flows of Volunteers of America, Utah.
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 types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient during the year ended June 30, 2023. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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 types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient during the year ended June 30, 2023.
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 types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient during the year ended June 30, 2023. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding Summary: In connection with the audit procedures performed, audit adjustments were required to properly reflect: 1) accounts receivable and revenue, and 2) construction in progress and the amounts payable related to the construction at year‐end. The Organization’s system of internal controls did not include controls to apply cutoff in the affected areas and properly reflect certain transactions in the financial statements. The Organization’s system of internal control over the preparation of the financial statements did not detect errors. Responsible Individuals: Christa Beauchat, Chief Financial Officer Corrective Action Plan: Management is revising its processes to address the areas with audit adjustments to ensure they are not repeated in the future, including a more detailed and thorough review (by management) of account balances prior to the audit. Anticipated Completion Date: 04/30/2024
Finding 2023-002
U.S. Department of Housing and Urban Development Federal Financial Assistance Listing 14.231 Covid-19 Emergency Solutions Grant Program – #23-DWS-0409; #72-5-23-4428 Procurement and Suspension and Debarment Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the Organization is managing the federal award in compliance with federal statutes regulations, and conditions of the federal award. Condition: In connection with the audit procedures performed, it was noted that the Organization did not adequately maintain complete procurement file documentation (as required by 2 CFR 200.318) related to one vendor that was selected for testing. Cause: The Organization did not have adequate internal controls in place to ensure that all vendor purchases/contracts include approved documentation of the required elements. Effect: There is an increased risk of noncompliance when internal controls are not adequately established, followed, and documented related to the procurement and suspension and debarment compliance requirement. Questioned Costs: None reported. Context/Sampling: Nonstatistical sampling was used for this compliance requirement. Sample size was 3 of 6 vendors (that exceeded the micro-purchase threshold for this program) totaling $97,732 out of $101,595 federal expenditures. For one vendor selected and tested, which had an immaterial amount (totaling $13,360) of federal expenditures for the major federal program tested, it was noted that complete internal controls and documentation related to this compliance requirement were not adequately documented. Repeat Finding from Prior Year: No Recommendation: The Organization should improve its processes and controls for: identifying vendors that meet the criteria of the Organization’s procurement policy, and documenting a procurement file (for each such vendor) that includes the required information and approvals. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Health & Human Services Federal Financial Assistance Listing 93.958 Block Grants for Mental Health Services - #AL22514C Period of Performance Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the Organization is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: In connection with the audit procedures performed, it was noted that there was one expenditure amount that was incurred prior to the period of performance. Cause: The Organization did not have internal controls in place to ensure that all program expenditures were incurred during the corresponding contract’s period of performance. Effect: There is an increased risk of noncompliance when internal controls are not adequately established, followed, and documented related to the period of performance compliance requirement. Questioned Costs: None reported. Context/Sampling: Nonstatistical sampling was used for this compliance requirement. Sample size was 60 program expenditure transactions out of 1,341 total program expenditure transactions, and included $83,946 of $418,405 federal awards. For one expenditure selected and tested, it was noted that $65 of costs charged to the program (out of $83,946 costs sampled and tested) were incurred prior to the related contract’s period of performance. Repeat Finding from Prior Year: No Recommendation: The Organization should improve its processes and controls for: identifying each contract’s period of performance and ensuring that all costs charged to were incurred during the period of performance. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
Finding Summary: In connection with the audit procedures performed, audit adjustments were required to properly reflect: 1) accounts receivable and revenue, and 2) construction in progress and the amounts payable related to the construction at year‐end. The Organization’s system of internal controls did not include controls to apply cutoff in the affected areas and properly reflect certain transactions in the financial statements. The Organization’s system of internal control over the preparation of the financial statements did not detect errors. Responsible Individuals: Christa Beauchat, Chief Financial Officer Corrective Action Plan: Management is revising its processes to address the areas with audit adjustments to ensure they are not repeated in the future, including a more detailed and thorough review (by management) of account balances prior to the audit. Anticipated Completion Date: 04/30/2024
Finding 2023-002
U.S. Department of Housing and Urban Development Federal Financial Assistance Listing 14.231 Covid-19 Emergency Solutions Grant Program – #23-DWS-0409; #72-5-23-4428 Procurement and Suspension and Debarment Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the Organization is managing the federal award in compliance with federal statutes regulations, and conditions of the federal award. Condition: In connection with the audit procedures performed, it was noted that the Organization did not adequately maintain complete procurement file documentation (as required by 2 CFR 200.318) related to one vendor that was selected for testing. Cause: The Organization did not have adequate internal controls in place to ensure that all vendor purchases/contracts include approved documentation of the required elements. Effect: There is an increased risk of noncompliance when internal controls are not adequately established, followed, and documented related to the procurement and suspension and debarment compliance requirement. Questioned Costs: None reported. Context/Sampling: Nonstatistical sampling was used for this compliance requirement. Sample size was 3 of 6 vendors (that exceeded the micro-purchase threshold for this program) totaling $97,732 out of $101,595 federal expenditures. For one vendor selected and tested, which had an immaterial amount (totaling $13,360) of federal expenditures for the major federal program tested, it was noted that complete internal controls and documentation related to this compliance requirement were not adequately documented. Repeat Finding from Prior Year: No Recommendation: The Organization should improve its processes and controls for: identifying vendors that meet the criteria of the Organization’s procurement policy, and documenting a procurement file (for each such vendor) that includes the required information and approvals. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Health & Human Services Federal Financial Assistance Listing 93.958 Block Grants for Mental Health Services - #AL22514C Period of Performance Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the Organization is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: In connection with the audit procedures performed, it was noted that there was one expenditure amount that was incurred prior to the period of performance. Cause: The Organization did not have internal controls in place to ensure that all program expenditures were incurred during the corresponding contract’s period of performance. Effect: There is an increased risk of noncompliance when internal controls are not adequately established, followed, and documented related to the period of performance compliance requirement. Questioned Costs: None reported. Context/Sampling: Nonstatistical sampling was used for this compliance requirement. Sample size was 60 program expenditure transactions out of 1,341 total program expenditure transactions, and included $83,946 of $418,405 federal awards. For one expenditure selected and tested, it was noted that $65 of costs charged to the program (out of $83,946 costs sampled and tested) were incurred prior to the related contract’s period of performance. Repeat Finding from Prior Year: No Recommendation: The Organization should improve its processes and controls for: identifying each contract’s period of performance and ensuring that all costs charged to were incurred during the period of performance. Views of Responsible Officials: Management agrees with this finding.