Audit 296191

FY End
2022-12-31
Total Expended
$947,580
Findings
10
Programs
3
Year: 2022 Accepted: 2024-03-20
Auditor: Cover & Rossiter

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
382611 2022-002 Material Weakness - A
382612 2022-003 Material Weakness - A
382613 2022-001 Material Weakness - A
382614 2022-002 Material Weakness - A
382615 2022-003 Material Weakness - A
959053 2022-002 Material Weakness - A
959054 2022-003 Material Weakness - A
959055 2022-001 Material Weakness - A
959056 2022-002 Material Weakness - A
959057 2022-003 Material Weakness - A

Programs

Contacts

Name Title Type
MFXFFJQ5A2A5 Kate Smith Auditee
3027335571 Peter Kennedy Auditor
No contacts on file

Notes to SEFA

Title: Basis of Accounting Accounting Policies: US Generally Accepted Accounting Practices De Minimis Rate Used: Y Rate Explanation: Overhead rate was reduced to 7.5% on ARPA grant by contract. The Schedule of Expenditures of Federal Awards is prepared on the same basis of accouintig as the Academy's financial statements. The Academy uses the accrual basis of accounting. Expenditures represent only the Federally funded portions of the program.
Title: Program Costs Accounting Policies: US Generally Accepted Accounting Practices De Minimis Rate Used: Y Rate Explanation: Overhead rate was reduced to 7.5% on ARPA grant by contract. The amounts shown as current year expenses represent only the federal grant portion of the program costs. Entire program costs, including the Academy's portion, may be more than shown.
Title: Federal Indirect Rate Accounting Policies: US Generally Accepted Accounting Practices De Minimis Rate Used: Y Rate Explanation: Overhead rate was reduced to 7.5% on ARPA grant by contract. The Academy used an indirect rate of 10%. This rate was reduced by contract to 7.5% for the Department of the Treasury grant.
Title: Amounts Awarded to Subrecipients Accounting Policies: US Generally Accepted Accounting Practices De Minimis Rate Used: Y Rate Explanation: Overhead rate was reduced to 7.5% on ARPA grant by contract. The Academy made no subrecipient awards duruing 2022.

Finding Details

The Academy charged direct payroll costs to the grant. While the costs appeared reasonable and were included in the budget for the grant, not all were supported by specific documentation. While it is logical and likely that the specific costs were incurred in furtherance of the program, we did not note specific documentation supporting that determination. A total of $36,378 of payroll did not have specific documentation. No adjustment was posted as due since it is unlikely the time was charged inappropriately.
The Academy did not correctly calulate the allowable amount of overhead charged to each of its major Federal grants. In the case of the ARPA funding,the Academy emmbedded a 7.5% allowable overhead rate in its contract. The default 10% rate was superseded by this provision. Additionally, in both contracts major vendors and subcontractors were included at their full amount rather than limiting the includable amount to $25,000 as required by 2 CFR Section 200. This resulted in overcharges totaling $24,384.
The Academy did not identify its DHHS-HRSA grant passed through the Public Health Management Corporation as Federally sourced and subject to 2 CFR Section 200 which dictates allowable and unallowable costs. This resulted in the Academy applying for reimbursement for costs of approximately $138,685 which were not allowable. $67,823 was immediately reimbursed.
The Academy charged direct payroll costs to the grant. While the costs appeared reasonable and were included in the budget for the grant, not all were supported by specific documentation. While it is logical and likely that the specific costs were incurred in furtherance of the program, we did not note specific documentation supporting that determination. A total of $36,378 of payroll did not have specific documentation. No adjustment was posted as due since it is unlikely the time was charged inappropriately.
The Academy did not correctly calulate the allowable amount of overhead charged to each of its major Federal grants. In the case of the ARPA funding,the Academy emmbedded a 7.5% allowable overhead rate in its contract. The default 10% rate was superseded by this provision. Additionally, in both contracts major vendors and subcontractors were included at their full amount rather than limiting the includable amount to $25,000 as required by 2 CFR Section 200. This resulted in overcharges totaling $24,384.
The Academy charged direct payroll costs to the grant. While the costs appeared reasonable and were included in the budget for the grant, not all were supported by specific documentation. While it is logical and likely that the specific costs were incurred in furtherance of the program, we did not note specific documentation supporting that determination. A total of $36,378 of payroll did not have specific documentation. No adjustment was posted as due since it is unlikely the time was charged inappropriately.
The Academy did not correctly calulate the allowable amount of overhead charged to each of its major Federal grants. In the case of the ARPA funding,the Academy emmbedded a 7.5% allowable overhead rate in its contract. The default 10% rate was superseded by this provision. Additionally, in both contracts major vendors and subcontractors were included at their full amount rather than limiting the includable amount to $25,000 as required by 2 CFR Section 200. This resulted in overcharges totaling $24,384.
The Academy did not identify its DHHS-HRSA grant passed through the Public Health Management Corporation as Federally sourced and subject to 2 CFR Section 200 which dictates allowable and unallowable costs. This resulted in the Academy applying for reimbursement for costs of approximately $138,685 which were not allowable. $67,823 was immediately reimbursed.
The Academy charged direct payroll costs to the grant. While the costs appeared reasonable and were included in the budget for the grant, not all were supported by specific documentation. While it is logical and likely that the specific costs were incurred in furtherance of the program, we did not note specific documentation supporting that determination. A total of $36,378 of payroll did not have specific documentation. No adjustment was posted as due since it is unlikely the time was charged inappropriately.
The Academy did not correctly calulate the allowable amount of overhead charged to each of its major Federal grants. In the case of the ARPA funding,the Academy emmbedded a 7.5% allowable overhead rate in its contract. The default 10% rate was superseded by this provision. Additionally, in both contracts major vendors and subcontractors were included at their full amount rather than limiting the includable amount to $25,000 as required by 2 CFR Section 200. This resulted in overcharges totaling $24,384.