FAC Explorer

Audit 295959

FY End
2022-06-30
Total Expended
$1.03M
Findings
6
Programs
7
Organization: New Avenues for Youth (OR)
Year: 2022 Accepted: 2024-03-19
Auditor: Hoffman Stewart & Schmidt PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
381254 2022-001 Significant Deficiency - L
381255 2022-002 Significant Deficiency Yes L
381256 2022-002 Significant Deficiency Yes L
957696 2022-001 Significant Deficiency - L
957697 2022-002 Significant Deficiency Yes L
957698 2022-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.623 Basic Center Grant $240,462 Yes 1
14.218 Community Development Block Grants/entitlement Grants $170,566 Yes 2
14.267 Continuum of Care Program $137,360 - 0
93.667 Social Services Block Grant $95,395 - 0
17.259 Wia Youth Activities $87,354 - 0
14.231 Emergency Solutions Grant Program $74,045 - 0
14.881 Moving to Work Demonstration Program $33,681 - 0

Contacts

Name Title Type
CCAGEJLAFRJ3 Sean Suib Auditee
5035173921 Nathan Stamets Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes all federal award activity of New Avenues for Youth, Inc. and its subsidiaries (collectively, the Organization) and is presented using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. 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, changes in net assets, or cash flows of the Organization. Pass-through entity identifying numbers are presented when available. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes all federal award activity of New Avenues for Youth, Inc. and its subsidiaries (collectively, the Organization) and is presented using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. 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, changes in net assets, or cash flows of the Organization. Pass-through entity identifying numbers are presented when available.
Title: Expenditures Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes all federal award activity of New Avenues for Youth, Inc. and its subsidiaries (collectively, the Organization) and is presented using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. 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, changes in net assets, or cash flows of the Organization. Pass-through entity identifying numbers are presented when available. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Expenditures reported on the Schedule 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.

Finding Details

Finding 2022-001
Criteria The grant requires that SF-425, Federal Financial Report - Quarterly Federal Financial Report (“FFR”) are required to be filed no later than 30 days after the end of the quarter. Condition During our audit, we noted that the Organization did not file FFRs timely during the year ended June 30, 2022. Cause Employees in the Organization’s finance and accounting department during this period did not have established procedures to timely file these reports. Effect The delay in filing the report resulted in noncompliance with program requirements. Context We sampled the FFR for the quarter ended June 30, 2022, noting that it was filed July 2023. Also, in our discussion with management, it is our understanding that the FFRs for three prior quarters were also filed late. Questioned Costs None. Recommendation The Organization has since hired a new Finance Director, who has implemented procedures to ensure required reports are filed timely. We recommend the Organization ensure these procedures continue be followed so that all required reports are filed timely. Views of Responsible Officials Management concurs with the finding and will ensure that the reports will be filed timely.
Finding 2022-002
Criteria 2 CFR section 207.512 of the Uniform Guidance (UG) states that the audit filing must be submitted to the Federal Audit Clearinghouse (FAC) the earlier of 30 days after receipt or within 9 months of the Organization’s fiscal year end. Condition The current year audit filing will be late. Cause Similar to finding 2022-001, employees in the Organization’s finance and accounting department during this period did not have established procedures to ensure the consolidated financial statements and the schedule of expenditures of federal awards (SEFA) were prepared timely. Effect The late audit filing results in noncompliance with program requirements. Context The Organization has since implemented procedures to ensure reports are prepared timely but during this period, a significant amount of work was necessary by the Organization’s finance and accounting department to update the underlying accounting records so that the consolidated financial statements and SEFA could be prepared. As a result of the work necessary, the reports were not prepared timely. Questioned Costs None. Repeat Finding from Prior Year Repeat finding, see finding 2021-001 in the Summary Schedule of Prior Audit Findings. Recommendation We recommend the Organization ensure the established procedures are followed so that future audit filings are timely. Views of Responsible Officials Management concurs with the finding and will ensure that the established procedures are followed.
Finding 2022-002
Criteria 2 CFR section 207.512 of the Uniform Guidance (UG) states that the audit filing must be submitted to the Federal Audit Clearinghouse (FAC) the earlier of 30 days after receipt or within 9 months of the Organization’s fiscal year end. Condition The current year audit filing will be late. Cause Similar to finding 2022-001, employees in the Organization’s finance and accounting department during this period did not have established procedures to ensure the consolidated financial statements and the schedule of expenditures of federal awards (SEFA) were prepared timely. Effect The late audit filing results in noncompliance with program requirements. Context The Organization has since implemented procedures to ensure reports are prepared timely but during this period, a significant amount of work was necessary by the Organization’s finance and accounting department to update the underlying accounting records so that the consolidated financial statements and SEFA could be prepared. As a result of the work necessary, the reports were not prepared timely. Questioned Costs None. Repeat Finding from Prior Year Repeat finding, see finding 2021-001 in the Summary Schedule of Prior Audit Findings. Recommendation We recommend the Organization ensure the established procedures are followed so that future audit filings are timely. Views of Responsible Officials Management concurs with the finding and will ensure that the established procedures are followed.
Finding 2022-001
Criteria The grant requires that SF-425, Federal Financial Report - Quarterly Federal Financial Report (“FFR”) are required to be filed no later than 30 days after the end of the quarter. Condition During our audit, we noted that the Organization did not file FFRs timely during the year ended June 30, 2022. Cause Employees in the Organization’s finance and accounting department during this period did not have established procedures to timely file these reports. Effect The delay in filing the report resulted in noncompliance with program requirements. Context We sampled the FFR for the quarter ended June 30, 2022, noting that it was filed July 2023. Also, in our discussion with management, it is our understanding that the FFRs for three prior quarters were also filed late. Questioned Costs None. Recommendation The Organization has since hired a new Finance Director, who has implemented procedures to ensure required reports are filed timely. We recommend the Organization ensure these procedures continue be followed so that all required reports are filed timely. Views of Responsible Officials Management concurs with the finding and will ensure that the reports will be filed timely.
Finding 2022-002
Criteria 2 CFR section 207.512 of the Uniform Guidance (UG) states that the audit filing must be submitted to the Federal Audit Clearinghouse (FAC) the earlier of 30 days after receipt or within 9 months of the Organization’s fiscal year end. Condition The current year audit filing will be late. Cause Similar to finding 2022-001, employees in the Organization’s finance and accounting department during this period did not have established procedures to ensure the consolidated financial statements and the schedule of expenditures of federal awards (SEFA) were prepared timely. Effect The late audit filing results in noncompliance with program requirements. Context The Organization has since implemented procedures to ensure reports are prepared timely but during this period, a significant amount of work was necessary by the Organization’s finance and accounting department to update the underlying accounting records so that the consolidated financial statements and SEFA could be prepared. As a result of the work necessary, the reports were not prepared timely. Questioned Costs None. Repeat Finding from Prior Year Repeat finding, see finding 2021-001 in the Summary Schedule of Prior Audit Findings. Recommendation We recommend the Organization ensure the established procedures are followed so that future audit filings are timely. Views of Responsible Officials Management concurs with the finding and will ensure that the established procedures are followed.
Finding 2022-002
Criteria 2 CFR section 207.512 of the Uniform Guidance (UG) states that the audit filing must be submitted to the Federal Audit Clearinghouse (FAC) the earlier of 30 days after receipt or within 9 months of the Organization’s fiscal year end. Condition The current year audit filing will be late. Cause Similar to finding 2022-001, employees in the Organization’s finance and accounting department during this period did not have established procedures to ensure the consolidated financial statements and the schedule of expenditures of federal awards (SEFA) were prepared timely. Effect The late audit filing results in noncompliance with program requirements. Context The Organization has since implemented procedures to ensure reports are prepared timely but during this period, a significant amount of work was necessary by the Organization’s finance and accounting department to update the underlying accounting records so that the consolidated financial statements and SEFA could be prepared. As a result of the work necessary, the reports were not prepared timely. Questioned Costs None. Repeat Finding from Prior Year Repeat finding, see finding 2021-001 in the Summary Schedule of Prior Audit Findings. Recommendation We recommend the Organization ensure the established procedures are followed so that future audit filings are timely. Views of Responsible Officials Management concurs with the finding and will ensure that the established procedures are followed.