Audit 296249

FY End
2022-12-31
Total Expended
$1.19M
Findings
32
Programs
2
Organization: Netfreedom Pioneers (CA)
Year: 2022 Accepted: 2024-03-20

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
382663 2022-001 Significant Deficiency - ABCHJL
382664 2022-002 Significant Deficiency - ABCHJL
382665 2022-001 Significant Deficiency - ABCHJL
382666 2022-002 Significant Deficiency - ABCHJL
382667 2022-001 Significant Deficiency - ABCHJL
382668 2022-002 Significant Deficiency - ABCHJL
382669 2022-001 Significant Deficiency - ABCHJL
382670 2022-002 Significant Deficiency - ABCHJL
382671 2022-001 Significant Deficiency - ABCHJL
382672 2022-002 Significant Deficiency - ABCHJL
382673 2022-001 Significant Deficiency - ABCHJL
382674 2022-002 Significant Deficiency - ABCHJL
382675 2022-001 Significant Deficiency - ABCHJL
382676 2022-002 Significant Deficiency - ABCHJL
382677 2022-001 Significant Deficiency - ABCHJL
382678 2022-002 Significant Deficiency - ABCHJL
959105 2022-001 Significant Deficiency - ABCHJL
959106 2022-002 Significant Deficiency - ABCHJL
959107 2022-001 Significant Deficiency - ABCHJL
959108 2022-002 Significant Deficiency - ABCHJL
959109 2022-001 Significant Deficiency - ABCHJL
959110 2022-002 Significant Deficiency - ABCHJL
959111 2022-001 Significant Deficiency - ABCHJL
959112 2022-002 Significant Deficiency - ABCHJL
959113 2022-001 Significant Deficiency - ABCHJL
959114 2022-002 Significant Deficiency - ABCHJL
959115 2022-001 Significant Deficiency - ABCHJL
959116 2022-002 Significant Deficiency - ABCHJL
959117 2022-001 Significant Deficiency - ABCHJL
959118 2022-002 Significant Deficiency - ABCHJL
959119 2022-001 Significant Deficiency - ABCHJL
959120 2022-002 Significant Deficiency - ABCHJL

Programs

ALN Program Spent Major Findings
19.221 Iran Assistance Program $203,173 Yes 2
19.345 International Programs to Support Democracy, Human Rights and Labor $44,971 - 2

Contacts

Name Title Type
HPR8HLZ4DJN3 Evan Firoozi Auditee
4244999985 Maria Kazemi Auditor
No contacts on file

Notes to SEFA

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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. In addition, agency or pass-through numbers are presented where available. De Minimis Rate Used: N Rate Explanation: NetFreedom Pioneers had not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance as of December 31, 2022.

Finding Details

Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.
Criteria : Financial statements are required to present correct classification of expenses. The Statement of Financial Position, Statement of Activities and Statement of Functional Expenses are affected by the incorrect expense cut-off. Condition : During the audit, auditors noted that year-end accruals related to payroll expense, vacation and related payroll taxes were missing or incorrect. As a result, salaries and wage and payroll tax expenses for the year ended December 31, 2022 were understated. Cause: The Organization incorrectly calculated or missed year-end accruals related to its payroll. Effect : Without accurate financial information, financial reports may be misstated and management may be unable to make informed decisions. Recommendation : We recommend that the Organization's management implements year-end procedures to ensure proper expense cut-off to have all accruals recorded as liabilities at year end.
Criteria : Management is responsible for proper classification of grants received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA). Condition : Changes to the SEFA were required to properly state federal funds received. Cause: The accounting staff did not prepare the SEFA accurately. Effect : Failure to maintain records of the federal funds received could result in incorrect reporting. Recommendation : We recommend the Organization implement year-end procedures to properly classify federal expenditures to ensure the SEFA is accurately prepared.