FAC Explorer

Audit 296427

FY End
2023-06-30
Total Expended
$1.05M
Findings
2
Programs
1
Organization: Delta Sigma Theta Sorority Inc. (DC)
Year: 2023 Accepted: 2024-03-21
Auditor: Sb & Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
382825 2023-001 Significant Deficiency Yes P
959267 2023-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
84.066 Trio_educational Opportunity Centers $1.05M Yes 1

Contacts

Name Title Type
YQ36K93H35G5 Linda Thomas Auditee
2029862400 Stephen MacKall Auditor
No contacts on file

Notes to SEFA

Title: 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: All Federal grant operations of Delta Sigma Theta Sorority, Inc. (the Grand Chapter) are included in the scope of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit) for the year ended June 30, 2023. The Single Audit was performed in accordance with the provisions of the OMB Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the major grant program noted below. The programs on the schedule of expenditures of Federal awards represent all Federal award programs for fiscal year 2023 cash or non-cash expenditure activities. For our single audit testing, we tested the Federal award program to ensure coverage of at least 40% of Federally granted funds. Our actual coverage was 100%. Expenditures reported on the schedule of expenditures of Federal awards (the Schedule) are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Management has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Management has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. All Federal grant operations of Delta Sigma Theta Sorority, Inc. (the Grand Chapter) are included in the scope of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit) for the year ended June 30, 2023. The Single Audit was performed in accordance with the provisions of the OMB Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the major grant program noted below. The programs on the schedule of expenditures of Federal awards represent all Federal award programs for fiscal year 2023 cash or non-cash expenditure activities. For our single audit testing, we tested the Federal award program to ensure coverage of at least 40% of Federally granted funds. Our actual coverage was 100%. Expenditures reported on the schedule of expenditures of Federal awards (the Schedule) are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Management has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: 2. BASIS OF PRESENTATION Accounting Policies: All Federal grant operations of Delta Sigma Theta Sorority, Inc. (the Grand Chapter) are included in the scope of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit) for the year ended June 30, 2023. The Single Audit was performed in accordance with the provisions of the OMB Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the major grant program noted below. The programs on the schedule of expenditures of Federal awards represent all Federal award programs for fiscal year 2023 cash or non-cash expenditure activities. For our single audit testing, we tested the Federal award program to ensure coverage of at least 40% of Federally granted funds. Our actual coverage was 100%. Expenditures reported on the schedule of expenditures of Federal awards (the Schedule) are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Management has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Management has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule includes the Federal award activity of the Grand Chapter under programs of the Federal government for the year ended June 30, 2023 and is recorded on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance.

Finding Details

Finding 2023-001
Reference Number: 2023-001 Federal Program: All Programs Type of Finding: Significant Deficiency over Financial Reporting Repeat Finding: Yes – 2022-001 Criteria Entities should maintain an adequate system of internal controls over financial reporting in order to initiate, authorize, record, process, and report financial data reliably in accordance with accounting principles generally accepted in the United States of America. Condition In fiscal year 2022, our credit card transaction testing resulted in the following findings: (1) 17 out of 25 credit card sections did not have documentation of a valid business purpose; (2) 6 out of 25 credit card selections did not have vendor receipts; and (3) 15 out of 25 credit card selections had no evidence of approval. Based on our discussions with management, the new credit card policy was not fully implemented in fiscal year 2023 and management acknowledged that exceptions to the credit card policy still existed during fiscal year 2023. As such, we did not perform additional testing during fiscal year 2023, and this finding remains as previously documented. Cause Management did not consistently follow its formal credit card policy in place during all of fiscal year 2023 to document requirements for credit card usage and retention of supporting documents for credit card transactions (i.e. vendor invoices, approval of expenditures, proof of valid business purpose, etc.). Effect A fraud risk exists that credit card purchases are unauthorized and are not used for valid business purposes. Questioned Costs Unknown Recommendation Management should enforce its formal credit card policy through-out the year. Management should also consider electronic methods to track credit card purchases, approvals, and receipts. The Grand Chapter should maintain all credit card receipts with business purpose documentation. Management Response and Corrective Action Plan Management agrees with the finding. See schedule of corrective actions.
Finding 2023-001
Reference Number: 2023-001 Federal Program: All Programs Type of Finding: Significant Deficiency over Financial Reporting Repeat Finding: Yes – 2022-001 Criteria Entities should maintain an adequate system of internal controls over financial reporting in order to initiate, authorize, record, process, and report financial data reliably in accordance with accounting principles generally accepted in the United States of America. Condition In fiscal year 2022, our credit card transaction testing resulted in the following findings: (1) 17 out of 25 credit card sections did not have documentation of a valid business purpose; (2) 6 out of 25 credit card selections did not have vendor receipts; and (3) 15 out of 25 credit card selections had no evidence of approval. Based on our discussions with management, the new credit card policy was not fully implemented in fiscal year 2023 and management acknowledged that exceptions to the credit card policy still existed during fiscal year 2023. As such, we did not perform additional testing during fiscal year 2023, and this finding remains as previously documented. Cause Management did not consistently follow its formal credit card policy in place during all of fiscal year 2023 to document requirements for credit card usage and retention of supporting documents for credit card transactions (i.e. vendor invoices, approval of expenditures, proof of valid business purpose, etc.). Effect A fraud risk exists that credit card purchases are unauthorized and are not used for valid business purposes. Questioned Costs Unknown Recommendation Management should enforce its formal credit card policy through-out the year. Management should also consider electronic methods to track credit card purchases, approvals, and receipts. The Grand Chapter should maintain all credit card receipts with business purpose documentation. Management Response and Corrective Action Plan Management agrees with the finding. See schedule of corrective actions.