FAC Explorer

Audit 301101

FY End
2023-06-30
Total Expended
$1.03M
Findings
8
Programs
3
Organization: College Dreams, INC (OR)
Year: 2023 Accepted: 2024-03-29
Auditor: McDonald Jacobs

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
390194 2023-001 Material Weakness - AB
390195 2023-002 Significant Deficiency - E
390196 2023-003 Significant Deficiency - L
390197 2023-004 - - L
966636 2023-001 Material Weakness - AB
966637 2023-002 Significant Deficiency - E
966638 2023-003 Significant Deficiency - L
966639 2023-004 - - L

Programs

ALN Program Spent Major Findings
17.259 Wia Youth Activities $619,400 - 0
84.044 Trio_talent Search $277,375 Yes 4
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $128,936 - 0

Contacts

Name Title Type
FMGZQ6JRJ8W1 Carl Thomas Auditee
5414768146 Jessica Yoder Auditor
No contacts on file

Notes to SEFA

Title: 1. BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes all federal grant activity of College Dreams, Inc. dba Project Youth+ under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of the 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 College Dreams, Inc. dba Project Youth+, it is not intended to and does not present the financial position, changes in net assets or cash flows of College Dreams, Inc. dba Project Youth+. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: College Dreams, Inc. dba Project Youth+ did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes all federal grant activity of College Dreams, Inc. dba Project Youth+ 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 the 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 College Dreams, Inc. dba Project Youth+, it is not intended to and does not present the financial position, changes in net assets or cash flows of College Dreams, Inc. dba Project Youth+.
Title: 2. EXPENDITURES Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes all federal grant activity of College Dreams, Inc. dba Project Youth+ under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of the 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 College Dreams, Inc. dba Project Youth+, it is not intended to and does not present the financial position, changes in net assets or cash flows of College Dreams, Inc. dba Project Youth+. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: College Dreams, Inc. dba Project Youth+ did not elect to use the 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 cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. College Dreams, Inc. dba Project Youth+ did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding # 2023-001: Type: Material weakness over allowable costs Assistance Listing Number: 84.044A TRIO Programs Cluster: TRIO – Talent Search Department of Education Requirement: Only allowable costs may be charged to the contract for reimbursement. Condition/Context: One out of six invoices charged to the contract was an unallowable expense (scholarships). Cause: Management review of invoices did not identify the unallowable expense. Effect: Although the contract was initially overcharged, management was able to reclassify other allowable expenses that were not previously charged. Questioned Costs: None. Recommendation: Expenses charged to contract should be reviewed thoroughly and be in compliance with contract agreement. Management should have understanding of what costs are considered allowable and unallowable. Management’s Response: The Executive Director, Business Manager and College+ Program Manager will thoroughly review the monthly Talent Search billing before completing a drawdown to ensure that all expenses billed are allowable costs.
Finding 2023-002
Finding # 2023-002: Type: Significant deficiency over eligibility Assistance Listing Number: 84.044A TRIO Programs Cluster: TRIO – Talent Search Department of Education Requirement: Applications to the program should be reviewed and approved prior to acceptance into the program. Condition/Context: Twenty applications out of 40 tested did not have proof of either initial or secondary review. Cause: Online applications are only reviewed by one person and some in-person applications did not have a signature indicating initial review by advisor or college prep specialists. Effect: There is the possibility for an ineligible recipient to receive assistance under the contract. Questioned Costs: None. Recommendation: Applications should have advisors or college prep specialists sign off and review prior to the program manager doing secondary review and acceptance. Management’s Response: The Executive Director and College+ Program Manager will ensure that all advisors review applications before sending to the College+ Program Manager for approval and acceptance.
Finding 2023-003
Finding # 2023-003: Type: Significant deficiency over reporting: Type: Immaterial noncompliance Assistance Listing Number: 84.044A TRIO Programs Cluster: TRIO – Talent Search Department of Education Requirement: An annual report is due within 90 days after end of the budget period. Condition/Context: The annual performance report was not submitted timely. Cause: The reporting deadline was not monitored. Effect: The annual performance report was filed late. Questioned Costs: None. Recommendation: Management should establish a system for tracking due dates for reports to avoid late submission. Management’s Response: We will have the Executive Director, Business Manager and College+ Program Manager monitor and ensure reports are remitted timely.
Finding 2023-004
Finding # 2023-004: Type: Significant deficiency over preparation of schedule of expenditures of federal awards (SEFA). Assistance Listing Number: 93.677 Social Services Block Grant Department of Health and Human Services Requirement: The Organization should have systems in place to prepare a complete and accurate SEFA. Condition/Context: The Organization did not identify all federal awards and adjustments were made to the SEFA prepared by management. Cause: The Organization had new funding sources that were not included in the SEFA. Effect: Federal rules and regulations may not be followed. Inaccuracies of the SEFA may impact Single audit and major program determination. Questioned Costs: None. Recommendation: The Organization should implement additional procedures and controls to accurately capture all activity under federal awards in preparing the SEFA. Management’s Response: The Executive Director and Business Manager will use a grant and contract tracking log to ensure they are aware of all federal awards.
Finding 2023-001
Finding # 2023-001: Type: Material weakness over allowable costs Assistance Listing Number: 84.044A TRIO Programs Cluster: TRIO – Talent Search Department of Education Requirement: Only allowable costs may be charged to the contract for reimbursement. Condition/Context: One out of six invoices charged to the contract was an unallowable expense (scholarships). Cause: Management review of invoices did not identify the unallowable expense. Effect: Although the contract was initially overcharged, management was able to reclassify other allowable expenses that were not previously charged. Questioned Costs: None. Recommendation: Expenses charged to contract should be reviewed thoroughly and be in compliance with contract agreement. Management should have understanding of what costs are considered allowable and unallowable. Management’s Response: The Executive Director, Business Manager and College+ Program Manager will thoroughly review the monthly Talent Search billing before completing a drawdown to ensure that all expenses billed are allowable costs.
Finding 2023-002
Finding # 2023-002: Type: Significant deficiency over eligibility Assistance Listing Number: 84.044A TRIO Programs Cluster: TRIO – Talent Search Department of Education Requirement: Applications to the program should be reviewed and approved prior to acceptance into the program. Condition/Context: Twenty applications out of 40 tested did not have proof of either initial or secondary review. Cause: Online applications are only reviewed by one person and some in-person applications did not have a signature indicating initial review by advisor or college prep specialists. Effect: There is the possibility for an ineligible recipient to receive assistance under the contract. Questioned Costs: None. Recommendation: Applications should have advisors or college prep specialists sign off and review prior to the program manager doing secondary review and acceptance. Management’s Response: The Executive Director and College+ Program Manager will ensure that all advisors review applications before sending to the College+ Program Manager for approval and acceptance.
Finding 2023-003
Finding # 2023-003: Type: Significant deficiency over reporting: Type: Immaterial noncompliance Assistance Listing Number: 84.044A TRIO Programs Cluster: TRIO – Talent Search Department of Education Requirement: An annual report is due within 90 days after end of the budget period. Condition/Context: The annual performance report was not submitted timely. Cause: The reporting deadline was not monitored. Effect: The annual performance report was filed late. Questioned Costs: None. Recommendation: Management should establish a system for tracking due dates for reports to avoid late submission. Management’s Response: We will have the Executive Director, Business Manager and College+ Program Manager monitor and ensure reports are remitted timely.
Finding 2023-004
Finding # 2023-004: Type: Significant deficiency over preparation of schedule of expenditures of federal awards (SEFA). Assistance Listing Number: 93.677 Social Services Block Grant Department of Health and Human Services Requirement: The Organization should have systems in place to prepare a complete and accurate SEFA. Condition/Context: The Organization did not identify all federal awards and adjustments were made to the SEFA prepared by management. Cause: The Organization had new funding sources that were not included in the SEFA. Effect: Federal rules and regulations may not be followed. Inaccuracies of the SEFA may impact Single audit and major program determination. Questioned Costs: None. Recommendation: The Organization should implement additional procedures and controls to accurately capture all activity under federal awards in preparing the SEFA. Management’s Response: The Executive Director and Business Manager will use a grant and contract tracking log to ensure they are aware of all federal awards.