FAC Explorer

Audit 296347

FY End
2023-06-30
Total Expended
$36.85M
Findings
2
Programs
15
Organization: Audubon Area Community Services, Inc. (KY)
Year: 2023 Accepted: 2024-03-21
Auditor: Alexander & Company CPAS Psc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
382745 2023-001 Significant Deficiency - P
959187 2023-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
93.356 Head Start Disaster Recovery $714,218 Yes 0
10.558 Child and Adult Care Food Program $709,317 - 0
93.472 Title IV-E Prevention and Family Services and Programs (a) $339,864 - 1
93.600 Head Start $318,461 Yes 0
17.235 Senior Community Service Employment Program $312,070 - 0
94.016 Senior Companion Program $256,798 - 0
94.011 Foster Grandparent Program $174,589 - 0
93.569 Community Services Block Grant $169,765 Yes 0
81.042 Weatherization Assistance for Low-Income Persons $122,191 - 0
93.556 Promoting Safe and Stable Families $84,038 - 0
93.568 Low-Income Home Energy Assistance $57,605 - 0
93.558 Temporary Assistance for Needy Families $37,779 - 0
94.002 Retired and Senior Volunteer Program $35,627 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $9,332 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $5,476 Yes 0

Contacts

Name Title Type
C8VLDLBG3JK7 Byron Mayes Auditee
2706861600 Joe Keller Auditor
No contacts on file

Notes to SEFA

Title: NOTE A Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Audubon Area Community Services, Inc. under programs of the federal government for the year ended June 30, 2023. 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 Audubon Area Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Audubon Area Community Services, Inc. De Minimis Rate Used: N Rate Explanation: Audubon Area Community Services, Inc. has a negotiated indirect rate and therefore does not use the 10% de minimus indirect cost rate. The indirect rate is approved by the U.S. Department of Health and Human Services (DHHS). As of June 30, 2023, Audubon Area Community Services, Inc. was using an approved provisional rate of 14.2%. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Audubon Area Community Services, Inc. under programs of the federal government for the year ended June 30, 2023. 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 Audubon Area Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Audubon Area Community Services, Inc.
Title: NOTE B Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Audubon Area Community Services, Inc. under programs of the federal government for the year ended June 30, 2023. 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 Audubon Area Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Audubon Area Community Services, Inc. De Minimis Rate Used: N Rate Explanation: Audubon Area Community Services, Inc. has a negotiated indirect rate and therefore does not use the 10% de minimus indirect cost rate. The indirect rate is approved by the U.S. Department of Health and Human Services (DHHS). As of June 30, 2023, Audubon Area Community Services, Inc. was using an approved provisional rate of 14.2%. 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.
Title: NOTE C Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Audubon Area Community Services, Inc. under programs of the federal government for the year ended June 30, 2023. 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 Audubon Area Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Audubon Area Community Services, Inc. De Minimis Rate Used: N Rate Explanation: Audubon Area Community Services, Inc. has a negotiated indirect rate and therefore does not use the 10% de minimus indirect cost rate. The indirect rate is approved by the U.S. Department of Health and Human Services (DHHS). As of June 30, 2023, Audubon Area Community Services, Inc. was using an approved provisional rate of 14.2%. Audubon Area Community Services, Inc. did not receive any noncash insurance or have any loan or loan guarantees outstanding at the end of the year.
Title: NOTE D Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Audubon Area Community Services, Inc. under programs of the federal government for the year ended June 30, 2023. 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 Audubon Area Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Audubon Area Community Services, Inc. De Minimis Rate Used: N Rate Explanation: Audubon Area Community Services, Inc. has a negotiated indirect rate and therefore does not use the 10% de minimus indirect cost rate. The indirect rate is approved by the U.S. Department of Health and Human Services (DHHS). As of June 30, 2023, Audubon Area Community Services, Inc. was using an approved provisional rate of 14.2%. Audubon Area Community Services, Inc. has a negotiated indirect rate and therefore does not use the 10% de minimus indirect cost rate. The indirect rate is approved by the U.S. Department of Health and Human Services (DHHS). As of June 30, 2023, Audubon Area Community Services, Inc. was using an approved provisional rate of 14.2%.

Finding Details

Finding 2023-001
Schedule of Expenditures of Federal Awards (SEFA) Not Accurately Reported Condition: Federal expenditures were over reported on the SEFA due to state expenditures being classified as federal expenditures, specifically related to its funding agreement with the Commonwealth of Kentucky Contract PON2 736-2200002279. Criteria: The SEFA should only include federal expenditures as required by the Uniform Guidance. Cause: The Organization has a funding agreement with the Commonwealth of Kentucky (Contract PON2 736-2200002279), under this funding agreement, the Organization was expected to receive 85% from federal sources and 15% from state sources. As such, the Organization allocated the total expenditures incurred under the contract in accordance with the funding agreement. Effect: The SEFA over reported federal expenditures by $801,496. Recommendation: We recommend management review their policies and procedures over SEFA preparation to ensure sufficient internal controls are implemented. In circumstances where there is any uncertainty regarding the source of the funds (for example, funding agreements with multiple sources), the Organization should reach out to the related agency and confirm the sources of the funding to verify the amounts reported on the SEFA are accurately presented. Views of Responsible Officials: As part of its processes and procedures to prepare the SEFA, management will reach out to the funding source (mentioned above) to verify the source of the funds to ensure the accuracy of reported federal expenditures. Additionally, for the specific funding agreement (mentioned above), management will reach out to the related funding source to communicate the discrepancy (the funding agreement’s source of funds is not consistent funds received).
Finding 2023-001
Schedule of Expenditures of Federal Awards (SEFA) Not Accurately Reported Condition: Federal expenditures were over reported on the SEFA due to state expenditures being classified as federal expenditures, specifically related to its funding agreement with the Commonwealth of Kentucky Contract PON2 736-2200002279. Criteria: The SEFA should only include federal expenditures as required by the Uniform Guidance. Cause: The Organization has a funding agreement with the Commonwealth of Kentucky (Contract PON2 736-2200002279), under this funding agreement, the Organization was expected to receive 85% from federal sources and 15% from state sources. As such, the Organization allocated the total expenditures incurred under the contract in accordance with the funding agreement. Effect: The SEFA over reported federal expenditures by $801,496. Recommendation: We recommend management review their policies and procedures over SEFA preparation to ensure sufficient internal controls are implemented. In circumstances where there is any uncertainty regarding the source of the funds (for example, funding agreements with multiple sources), the Organization should reach out to the related agency and confirm the sources of the funding to verify the amounts reported on the SEFA are accurately presented. Views of Responsible Officials: As part of its processes and procedures to prepare the SEFA, management will reach out to the funding source (mentioned above) to verify the source of the funds to ensure the accuracy of reported federal expenditures. Additionally, for the specific funding agreement (mentioned above), management will reach out to the related funding source to communicate the discrepancy (the funding agreement’s source of funds is not consistent funds received).