Audit 301048

FY End
2023-06-30
Total Expended
$1.55M
Findings
4
Programs
5
Organization: Nueva Esperanza, Inc. (PA)
Year: 2023 Accepted: 2024-03-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
390143 2023-001 Significant Deficiency Yes L
390144 2023-001 Significant Deficiency Yes L
966585 2023-001 Significant Deficiency Yes L
966586 2023-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.575 Child Care and Development Block Grant $499,816 - 0
14.169 Housing Counseling Assistance Program $335,953 Yes 1
11.028 Connecting Minority Communities Pilot Program $173,395 - 0
84.031S Higher Education_institutional Aid $160,762 - 0
14.218 Community Development Block Grants/entitlement Grants $28,440 - 0

Contacts

Name Title Type
JV71JLXXSTJ5 Matthew Lentz Auditee
2676683594 Eric M Strauss Auditor
No contacts on file

Notes to SEFA

Title: GENERAL INFORMATION Accounting Policies: The accompanying schedule of expenditures of federal and city awards is presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal, state and other funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: Nueva Esperanza, Inc. has made an election pursuant to 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards to receive a 40.2% indirect cost rate. This is the provisional approved indirect rate Nueva Esperanza, Inc. has through the Department of Health and Human Services (“DHHS”) through June 30, 2024. Nueva Esperanza, Inc. has applied for a provisional rate of 34.80% for award periods beginning after June 30, 2022. The rate charged on contracts will not exceed this rate. The accompanying schedule of expenditures of federal and city awards presents the activities in all the federal financial assistance programs of Nueva Esperanza, Inc. (“NEI”). Financial assistance received directly as well as financial assistance passed through other governmental agencies or not-for-profit organizations are included on the schedule. 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”) and the City of Philadelphia Subrecipient Audit Guide. Because the Schedule presents only a selected portion of the operations of NEI, it is not intended to and does not present the financial position, changes in net assets, or cash flows of NEI.
Title: SCOPE OF AUDIT PURSUANT TO UNIFORM GUIDANCE Accounting Policies: The accompanying schedule of expenditures of federal and city awards is presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal, state and other funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: Nueva Esperanza, Inc. has made an election pursuant to 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards to receive a 40.2% indirect cost rate. This is the provisional approved indirect rate Nueva Esperanza, Inc. has through the Department of Health and Human Services (“DHHS”) through June 30, 2024. Nueva Esperanza, Inc. has applied for a provisional rate of 34.80% for award periods beginning after June 30, 2022. The rate charged on contracts will not exceed this rate. The consolidated financial statements of Nueva Esperanza, Inc. include the accounts and activities of Nueva Esperanza, Inc. and its affiliated entities (the “Organization”). The federal and city award expenditures for three of the Organization’s affiliated entities, Esperanza Academy Charter School, Esperanza Cyber Charter School and Eastern North Philadelphia Workforce Development Corporation in the amounts of $11,273,335, $5,913,199 and $4,723,522, respectively, have not been included in the accompanying schedule of expenditures of federal and city awards for the year ended June 30, 2023. Esperanza Academy Charter School, Esperanza Cyber Charter School and Eastern North Philadelphia Workforce Development Corporation’s federal and city expenditures have been included in Esperanza Academy Charter School, Esperanza Cyber Charter School and Eastern North Philadelphia Workforce Development Corporation’s schedule of expenditures of federal and city awards, which is included in its separate Uniform Guidance single audit for the year ended June 30, 2023 under Employer Identification Number 23-2853988, 45-5472199 and 23-2978010, respectively.
Title: SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal and city awards is presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal, state and other funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: Nueva Esperanza, Inc. has made an election pursuant to 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards to receive a 40.2% indirect cost rate. This is the provisional approved indirect rate Nueva Esperanza, Inc. has through the Department of Health and Human Services (“DHHS”) through June 30, 2024. Nueva Esperanza, Inc. has applied for a provisional rate of 34.80% for award periods beginning after June 30, 2022. The rate charged on contracts will not exceed this rate. Subrecipient Amount Eastern University $ 79,675 Total ALN Number 84.031S 79,675 Centro Familiar Nueva Esperanza 35,494 Detroit Hispanic Development Corporation 37,464 Greater Southwest Development Corporation 39,823 Housing and Family Services of Greater New York, Inc. 150,202 Sandhills Community Action Program Inc. 13,801 Newsed Community Development Corporation, Inc. 25,164 Our Casas Resident Council, Inc. 38,704 Total ALN Number 14.169 340,652 Total subrecipient $ 420,327

Finding Details

Condition and Context On HC21-0011-021, the FFRs for the quarters ended December 31, 2022, March 31, 2023 and June 30, 2023 were not submitted within 30 days following the calendar quarter. The December 31, 2022 FFR was filed on August 28, 2023, March 31, 2023 FFR was filed on November 8, 2023 and June 30, 2023 FFR was filed on December 12, 2023. Criteria Per U.S. Department of Housing and Urban Development Reporting Guidance in connection with 2 CFR 200.327, for HC21-0011-021 the FFRs are due quarterly; within 30 days after end of the reporting period. Cause As a result of understaffing in the accounting department, Nueva Esperanza, Inc. was not able to meet Federal Financial Assistance Management Improvement Act (“FAMI”) timeliness requirements. Effect Nueva Esperanza, Inc. was not in compliance with Federal requirements relating to FAMI reporting. Recommendation We recommend that Nueva Esperanza, Inc. establishes controls to identify all award reporting requirements and file reports on a timely basis.
Condition and Context On HC21-0011-021, the FFRs for the quarters ended December 31, 2022, March 31, 2023 and June 30, 2023 were not submitted within 30 days following the calendar quarter. The December 31, 2022 FFR was filed on August 28, 2023, March 31, 2023 FFR was filed on November 8, 2023 and June 30, 2023 FFR was filed on December 12, 2023. Criteria Per U.S. Department of Housing and Urban Development Reporting Guidance in connection with 2 CFR 200.327, for HC21-0011-021 the FFRs are due quarterly; within 30 days after end of the reporting period. Cause As a result of understaffing in the accounting department, Nueva Esperanza, Inc. was not able to meet Federal Financial Assistance Management Improvement Act (“FAMI”) timeliness requirements. Effect Nueva Esperanza, Inc. was not in compliance with Federal requirements relating to FAMI reporting. Recommendation We recommend that Nueva Esperanza, Inc. establishes controls to identify all award reporting requirements and file reports on a timely basis.
Condition and Context On HC21-0011-021, the FFRs for the quarters ended December 31, 2022, March 31, 2023 and June 30, 2023 were not submitted within 30 days following the calendar quarter. The December 31, 2022 FFR was filed on August 28, 2023, March 31, 2023 FFR was filed on November 8, 2023 and June 30, 2023 FFR was filed on December 12, 2023. Criteria Per U.S. Department of Housing and Urban Development Reporting Guidance in connection with 2 CFR 200.327, for HC21-0011-021 the FFRs are due quarterly; within 30 days after end of the reporting period. Cause As a result of understaffing in the accounting department, Nueva Esperanza, Inc. was not able to meet Federal Financial Assistance Management Improvement Act (“FAMI”) timeliness requirements. Effect Nueva Esperanza, Inc. was not in compliance with Federal requirements relating to FAMI reporting. Recommendation We recommend that Nueva Esperanza, Inc. establishes controls to identify all award reporting requirements and file reports on a timely basis.
Condition and Context On HC21-0011-021, the FFRs for the quarters ended December 31, 2022, March 31, 2023 and June 30, 2023 were not submitted within 30 days following the calendar quarter. The December 31, 2022 FFR was filed on August 28, 2023, March 31, 2023 FFR was filed on November 8, 2023 and June 30, 2023 FFR was filed on December 12, 2023. Criteria Per U.S. Department of Housing and Urban Development Reporting Guidance in connection with 2 CFR 200.327, for HC21-0011-021 the FFRs are due quarterly; within 30 days after end of the reporting period. Cause As a result of understaffing in the accounting department, Nueva Esperanza, Inc. was not able to meet Federal Financial Assistance Management Improvement Act (“FAMI”) timeliness requirements. Effect Nueva Esperanza, Inc. was not in compliance with Federal requirements relating to FAMI reporting. Recommendation We recommend that Nueva Esperanza, Inc. establishes controls to identify all award reporting requirements and file reports on a timely basis.