FAC Explorer

Audit 300559

FY End
2022-12-31
Total Expended
$1.18M
Findings
4
Programs
4
Organization: Satchmo Plaza Branch of Central City Housing Development, Inc. (LA)
Year: 2022 Accepted: 2024-03-29
Auditor: Sean M Bruno CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
389656 2022-001 Material Weakness - L
389657 2022-002 Material Weakness Yes G
966098 2022-001 Material Weakness - L
966099 2022-002 Material Weakness Yes G

Programs

ALN Program Spent Major Findings
93.600 Head Start $957,076 Yes 2
14.218 Community Development Block Grants/entitlement Grants $90,564 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $89,211 - 0
10.558 Child and Adult Care Food Program $47,014 - 0

Contacts

Name Title Type
DFAYT2TQL9G4 Lisa S. Mazique Auditee
5045243484 Sean M. Bruno Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - GENERAL: Accounting Policies: The financial statements of CCEOC are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America and in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. De Minimis Rate Used: N Rate Explanation: CCEOC has not elected to use the ten percent (10%) de minimis indirect cost rate. Central City Economic Opportunity Corporation (CCEOC) was organized to promote and develop economic opportunity to those in need of increased economic opportunity; to promote the education and welfare of the people of the community; and to form special interest groups as it deems necessary to solve special problems of the community. A summary of the significant accounting policies consistently applied in the preparation of the accompanying financial statements follows: Basis of Accounting The financial statements of CCEOC are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America and in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Title: NOTE 2 - MAJOR FEDERAL PROGRAMS: Accounting Policies: The financial statements of CCEOC are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America and in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. De Minimis Rate Used: N Rate Explanation: CCEOC has not elected to use the ten percent (10%) de minimis indirect cost rate. CCEOC’s major federal financial assistance programs for the year ended December 31, 2022 was determined based on guidelines established by the Uniform Guidance. The major program for the year ended December 31, 2022 was the Head Start program.
Title: NOTE 3 - SUB-RECIPIENTS: Accounting Policies: The financial statements of CCEOC are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America and in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. De Minimis Rate Used: N Rate Explanation: CCEOC has not elected to use the ten percent (10%) de minimis indirect cost rate. CCEOC did not disburse any federal funds to sub-recipients during the year ended December 31, 2022.
Title: NOTE 4 - INDIRECT COST RATE: Accounting Policies: The financial statements of CCEOC are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America and in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. De Minimis Rate Used: N Rate Explanation: CCEOC has not elected to use the ten percent (10%) de minimis indirect cost rate. CCEOC has not elected to use the ten percent (10%) de minimis indirect cost rate.
Title: NOTE 5 - SUBSEQUENT EVENTS: Accounting Policies: The financial statements of CCEOC are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America and in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. De Minimis Rate Used: N Rate Explanation: CCEOC has not elected to use the ten percent (10%) de minimis indirect cost rate. CCEOC is required to evaluate events or transactions that may have occurred after the statement of financial position date for potential recognition or disclosure in the financial statements. CCEOC performed such an evaluation through December 30, 2023, the date which financial statements were available to be issued, and noted no subsequent events or transactions that occurred after the statement of financial position date that required recognition or disclosure.

Finding Details

Finding 2022-001
INTERNAL CONTROL OVER COMPLIANCE AND COMPLIANCE Audit Finding Reference Number 2022 – 001 – Late Submission of Audit Report Federal Program and Specific Federal Award Identification CFDA Title and Number 93.600 Head Start Program Federal Award Year December 31, 2022 Federal Agency U.S. Department of Health and Human Services Pass-Through Entity Not Applicable Criteria Pursuant to the requirement of Uniform Guidance 2 CFR Part 200.512(a), Single audits are required to be completed and the data collection form and reporting package submitted within the earlier of thirty (30) days after receipt of the auditor’s report, or nine (9) months after the end of the audit period. If the due date falls on a Saturday, Sunday, or federal Holiday, the reporting package is due the next business day. In addition, pursuant to the requirement of Louisiana Status R.S. 24:513 A. (5)(a)(i), annual financial reports shall be completed within six (6) months of the close of an entity’s fiscal year. Conditions and Contexts The December 31, 2022 audit report was not submitted within the prescribed time frame. Required by federal regulations. The audit report was outstanding beyond the nine (9) months after the entity’s fiscal year pursuant to the federal requirements and beyond the six (6) months pursual to the Louisiana state requirements. Cause Management failed to ensure the audit report was issued within the prescribed time frame. Questioned Costs For purposes of this condition, I have no questioned cost. Effect CCEOC has not complied with the audit requirement of Uniform Guidance 2 CFR Part 200.512(a) and Louisiana Status R.S. 24:513 A. 95)(a)(i). Repeat Finding No. Recommendation I recommend that management of CCEOC take steps to ensure that the Single Audit is submitted within the prescribed deadlines. Management’s Response CCEOC advertised for audit services in January 2023 and did not receive a response. After consulting with our Board, recommendations were made to directly solicit capable firms. CCEOC was able to engage a new firm in April 2023. Due the unfamiliarity with the organization, voluminous amounts of information were required, creating a number of challenges to our part-time accounting staff.
Finding 2022-002
INTERNAL CONTROL OVER COMPLIANCE AND COMPLIANCE, CONTINUED Audit Finding Reference Number 2022 – 002 – Minimum Average Daily Attendance Rate Federal Program and Specific Federal Award Identification CFDA Title and Number 93.600 Head Start Program Federal Award Year December 31, 2022 Federal Agency U.S. Department of Health and Human Services Pass-Through Entity Not Applicable Criteria Section III of the Cooperative Endeavor Agreement (CEA) between Total Community Action, Inc. (TCA) and CCEOC states in part “The Delegate shall maintain successful recruitment and full enrollment at its funded enrollment as stated in Section I, “Services to be Rendered” above, of eligible children and appropriate average daily attendance rate. A minimum average daily attendance of 85% of the enrolled children is required”. Conditions and Context The CEA between CCEOC and TCA (grantor) for the year ended December 31, 2022, required the maintenance of a 85% attendance level for its enrolled students in its Head Start Program. During the year, the attendance level was below the required 85% in part to the impact of the COVID-19 pandemic from which resulted in a mandated stay home order from the Governor for the State of Louisiana and the Mayor for the City of New Orleans to include various transitional issues For the year ended December 31,2022, CCEOC is still recovering from the COVID-19 low attendance impact and have not been able to increase attendance. Cause Various external factors include primarily the inability to recover from the COVID-19 pandemic which impacted enrolled student attendance. Questioned Cost For purposes of this condition, I have no questioned cost. Effect Noncompliance with its student attendance level. Repeat Finding Yes. See 2021-002. Recommendation It is our understanding through discussions with management that during the year ended December 31, 2022, certain waivers discussed to be put in place to accommodate the low attendance; however, the waivers were not implemented. Management should continue its outreach efforts toward activities to facilitate enrolled student attendance as well as obtaining approval for the attendance waiver. Management’s Response COVID has adversely impacted attendance, enrollment and staffing patterns for the past three years. Such occurrences have been commonplace throughout the Head Start childcare network. CCEOC continues to encourage student attendance via parent meetings and conferences.
Finding 2022-001
INTERNAL CONTROL OVER COMPLIANCE AND COMPLIANCE Audit Finding Reference Number 2022 – 001 – Late Submission of Audit Report Federal Program and Specific Federal Award Identification CFDA Title and Number 93.600 Head Start Program Federal Award Year December 31, 2022 Federal Agency U.S. Department of Health and Human Services Pass-Through Entity Not Applicable Criteria Pursuant to the requirement of Uniform Guidance 2 CFR Part 200.512(a), Single audits are required to be completed and the data collection form and reporting package submitted within the earlier of thirty (30) days after receipt of the auditor’s report, or nine (9) months after the end of the audit period. If the due date falls on a Saturday, Sunday, or federal Holiday, the reporting package is due the next business day. In addition, pursuant to the requirement of Louisiana Status R.S. 24:513 A. (5)(a)(i), annual financial reports shall be completed within six (6) months of the close of an entity’s fiscal year. Conditions and Contexts The December 31, 2022 audit report was not submitted within the prescribed time frame. Required by federal regulations. The audit report was outstanding beyond the nine (9) months after the entity’s fiscal year pursuant to the federal requirements and beyond the six (6) months pursual to the Louisiana state requirements. Cause Management failed to ensure the audit report was issued within the prescribed time frame. Questioned Costs For purposes of this condition, I have no questioned cost. Effect CCEOC has not complied with the audit requirement of Uniform Guidance 2 CFR Part 200.512(a) and Louisiana Status R.S. 24:513 A. 95)(a)(i). Repeat Finding No. Recommendation I recommend that management of CCEOC take steps to ensure that the Single Audit is submitted within the prescribed deadlines. Management’s Response CCEOC advertised for audit services in January 2023 and did not receive a response. After consulting with our Board, recommendations were made to directly solicit capable firms. CCEOC was able to engage a new firm in April 2023. Due the unfamiliarity with the organization, voluminous amounts of information were required, creating a number of challenges to our part-time accounting staff.
Finding 2022-002
INTERNAL CONTROL OVER COMPLIANCE AND COMPLIANCE, CONTINUED Audit Finding Reference Number 2022 – 002 – Minimum Average Daily Attendance Rate Federal Program and Specific Federal Award Identification CFDA Title and Number 93.600 Head Start Program Federal Award Year December 31, 2022 Federal Agency U.S. Department of Health and Human Services Pass-Through Entity Not Applicable Criteria Section III of the Cooperative Endeavor Agreement (CEA) between Total Community Action, Inc. (TCA) and CCEOC states in part “The Delegate shall maintain successful recruitment and full enrollment at its funded enrollment as stated in Section I, “Services to be Rendered” above, of eligible children and appropriate average daily attendance rate. A minimum average daily attendance of 85% of the enrolled children is required”. Conditions and Context The CEA between CCEOC and TCA (grantor) for the year ended December 31, 2022, required the maintenance of a 85% attendance level for its enrolled students in its Head Start Program. During the year, the attendance level was below the required 85% in part to the impact of the COVID-19 pandemic from which resulted in a mandated stay home order from the Governor for the State of Louisiana and the Mayor for the City of New Orleans to include various transitional issues For the year ended December 31,2022, CCEOC is still recovering from the COVID-19 low attendance impact and have not been able to increase attendance. Cause Various external factors include primarily the inability to recover from the COVID-19 pandemic which impacted enrolled student attendance. Questioned Cost For purposes of this condition, I have no questioned cost. Effect Noncompliance with its student attendance level. Repeat Finding Yes. See 2021-002. Recommendation It is our understanding through discussions with management that during the year ended December 31, 2022, certain waivers discussed to be put in place to accommodate the low attendance; however, the waivers were not implemented. Management should continue its outreach efforts toward activities to facilitate enrolled student attendance as well as obtaining approval for the attendance waiver. Management’s Response COVID has adversely impacted attendance, enrollment and staffing patterns for the past three years. Such occurrences have been commonplace throughout the Head Start childcare network. CCEOC continues to encourage student attendance via parent meetings and conferences.