FAC Explorer

Audit 298077

FY End
2023-06-30
Total Expended
$1.03M
Findings
4
Programs
4
Organization: Care Ring, INC (NC)
Year: 2023 Accepted: 2024-03-26
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
385016 2023-001 Significant Deficiency - I
385017 2023-002 Significant Deficiency - I
961458 2023-001 Significant Deficiency - I
961459 2023-002 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $699,027 Yes 2
93.004 Cooperative Agreements to Improve the Health Status of Minority Populations $144,554 - 0
14.218 Community Development Block Grants/entitlement Grants $107,345 - 0
14.231 Emergency Solutions Grant Program $77,824 - 0

Contacts

Name Title Type
R1MLN31SR7G7 Tchernavia Montgomery Auditee
7042483710 Jordan Miller Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 BASIS OF PRESENTATION Accounting Policies: NOTE 1 BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal grant activity of Care Ring, Inc. (the Organization) and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. No amounts were passed through to subrecipients. De Minimis Rate Used: N Rate Explanation: 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. The Organization has elected not to use 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal grant activity of Care Ring, Inc. (the Organization) and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. No amounts were passed through to subrecipients.
Title: NOTE 2 CONTINGENCIES Accounting Policies: NOTE 1 BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal grant activity of Care Ring, Inc. (the Organization) and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. No amounts were passed through to subrecipients. De Minimis Rate Used: N Rate Explanation: 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. The Organization has elected not to use 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization is subject to audit examination by the funding sources of grants to determine its compliance with certain grant provisions. In the event that expenditures could be disallowed through the audit, repayment of such disallowances could be required.
Title: NOTE 3 INDIRECT COST RATE Accounting Policies: NOTE 1 BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal grant activity of Care Ring, Inc. (the Organization) and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. No amounts were passed through to subrecipients. De Minimis Rate Used: N Rate Explanation: 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. The Organization has elected not to use 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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. The Organization has elected not to use 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001: Lack of Documentation Ensuring Vendor is Not Suspended or Debarred Federal Agency: U.S. Department of the Treasury Federal Program: ARPA – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 15, 2022 to December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition and Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred, including contracts for goods and services awarded under a non-procurement transactions that are expected to equal or exceed $25,000. Cause: In our sample of five (5) vendors, we noted no noncompliance, however, the Organization was unable to provide documentation that it had verified the vendors were not suspended or debarred. Effect: The Organization could make payments to a suspended or debarred vendor. Recommendation: We recommend that the Organization verifies that vendors are not suspended or debarred and retain documentation verifying that process occurred. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. The Organization will print or save documentation to include date and source of search when verifying debarment or suspension. A procedure will be created documenting the process as well as documenting that an additional individual reviewed the documentation verifying the search for debarment or suspension. Name of the Contact Person Responsible for the Corrective Action: Paula Culp, Chief Administrative Officer Planned Completion Date for the Corrective Action Plan: January 2024
Finding 2023-002
Finding 2023-002: Lack of Formal Procurement Policy That Reflects Federal Requirements Federal Agency: U.S. Department of the Treasury Federal Program: ARPA – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 15, 2022 to December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition and Criteria: Non-federal entities are required to have documented procurement procedures that reflect applicable federal requirements that are indicated 2 CFR Section 200.317 through 200.327. Such a policy ensures an appropriate level of competition in making purchases from vendors depending on nature and size of the purchase. This policy would include written procedures for procurement transactions ranging from micro-purchases (i.e., generally under $10,000), small purchases where price or rate quotations should be obtained, and larger purchases where formal sealed bids or proposals should be obtained. Cause: The Organization has formal a conflict of interest policy and its internal control procedures related to purchases require dual signatures for purchases in excess of $5,000. However, the Organization does not have a formal procurement policy that incorporates the requirements of 2 CFR Section 200.317 through 200.327. Effect: The Organization could make purchases that involve pricing that has not been subjected to an appropriate level of competition or price analysis that has been documented. Recommendation: We recommend that the Organization develop a formal documented procurement policy that incorporates the federal requirements indicated in 2 CFR Section 200.317 through 200.327 as discussed above. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. The Organization will adopt a formal procurement policy in accordance with federal requirements. Name of the Contact Person Responsible for the Corrective Action: Paula Culp, Chief Administrative Officer Planned Completion Date for the Corrective Action Plan: March 2024
Finding 2023-001
Finding 2023-001: Lack of Documentation Ensuring Vendor is Not Suspended or Debarred Federal Agency: U.S. Department of the Treasury Federal Program: ARPA – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 15, 2022 to December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition and Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred, including contracts for goods and services awarded under a non-procurement transactions that are expected to equal or exceed $25,000. Cause: In our sample of five (5) vendors, we noted no noncompliance, however, the Organization was unable to provide documentation that it had verified the vendors were not suspended or debarred. Effect: The Organization could make payments to a suspended or debarred vendor. Recommendation: We recommend that the Organization verifies that vendors are not suspended or debarred and retain documentation verifying that process occurred. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. The Organization will print or save documentation to include date and source of search when verifying debarment or suspension. A procedure will be created documenting the process as well as documenting that an additional individual reviewed the documentation verifying the search for debarment or suspension. Name of the Contact Person Responsible for the Corrective Action: Paula Culp, Chief Administrative Officer Planned Completion Date for the Corrective Action Plan: January 2024
Finding 2023-002
Finding 2023-002: Lack of Formal Procurement Policy That Reflects Federal Requirements Federal Agency: U.S. Department of the Treasury Federal Program: ARPA – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 15, 2022 to December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition and Criteria: Non-federal entities are required to have documented procurement procedures that reflect applicable federal requirements that are indicated 2 CFR Section 200.317 through 200.327. Such a policy ensures an appropriate level of competition in making purchases from vendors depending on nature and size of the purchase. This policy would include written procedures for procurement transactions ranging from micro-purchases (i.e., generally under $10,000), small purchases where price or rate quotations should be obtained, and larger purchases where formal sealed bids or proposals should be obtained. Cause: The Organization has formal a conflict of interest policy and its internal control procedures related to purchases require dual signatures for purchases in excess of $5,000. However, the Organization does not have a formal procurement policy that incorporates the requirements of 2 CFR Section 200.317 through 200.327. Effect: The Organization could make purchases that involve pricing that has not been subjected to an appropriate level of competition or price analysis that has been documented. Recommendation: We recommend that the Organization develop a formal documented procurement policy that incorporates the federal requirements indicated in 2 CFR Section 200.317 through 200.327 as discussed above. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. The Organization will adopt a formal procurement policy in accordance with federal requirements. Name of the Contact Person Responsible for the Corrective Action: Paula Culp, Chief Administrative Officer Planned Completion Date for the Corrective Action Plan: March 2024