FAC Explorer

Audit 302783

FY End
2023-09-30
Total Expended
$768,854
Findings
4
Programs
2
Organization: Barium Springs Home for Children (NC)
Year: 2023 Accepted: 2024-04-07
Auditor: Dmjps PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
392474 2023-001 Significant Deficiency - P
392475 2023-002 Material Weakness - P
968916 2023-001 Significant Deficiency - P
968917 2023-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
93.556 Promoting Safe and Stable Families $422,045 Yes 2
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $18,120 - 0

Contacts

Name Title Type
HKQKFYM28LH1 Krista Zappia Auditee
7044371973 Noel Swartz 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 (SEFSA) includes the federal and State grant activity of Barium Springs Home for Children under the programs of the Federal and State government for the year ended September 30, 2023. The information in this SEFSA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act . Because the Schedule presents only a selected portion of the operations of Barium Springs Home for Children, it is not intended to and does not present the financial position, changes in net position, or cash flows of Barium Springs Home for Children. Note 2: Summary of Significant Accounting Policies-Expenditures reported in the SEFSA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Barium Springs Home for Children 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: The auditee didn't use the de minimis rate of 10% of modified total direct costs or any other indirect cost rate. The accompanying schedule of expenditures of federal and State awards (SEFSA) includes the federal and State grant activity of Barium Springs Home for Children under the programs of the Federal and State government for the year ended September 30, 2023. The information in this SEFSA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act . Because the Schedule presents only a selected portion of the operations of Barium Springs Home for Children, it is not intended to and does not present the financial position, changes in net position, or cash flows of Barium Springs Home for Children.
Title: Note 2: Summary of Significant Accounting Policies Accounting Policies: Note 1: Basis of Presentation-The accompanying schedule of expenditures of federal and State awards (SEFSA) includes the federal and State grant activity of Barium Springs Home for Children under the programs of the Federal and State government for the year ended September 30, 2023. The information in this SEFSA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act . Because the Schedule presents only a selected portion of the operations of Barium Springs Home for Children, it is not intended to and does not present the financial position, changes in net position, or cash flows of Barium Springs Home for Children. Note 2: Summary of Significant Accounting Policies-Expenditures reported in the SEFSA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Barium Springs Home for Children 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: The auditee didn't use the de minimis rate of 10% of modified total direct costs or any other indirect cost rate. Expenditures reported in the SEFSA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Barium Springs Home for Children has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Criteria: Internal control procedures over payroll provide reasonable assurance regarding reduced opportunity for fraud or error in recording payroll. Condition: During internal controls testing for payroll, we noted that there are no formal policies in place for approval of payroll before it is submitted. Effect: Barium Springs Home for Children runs the risk of employees committing errors or potential fraud with payroll. Cause: Formal internal control procedures are not in place that would prevent or detect fraud. Recommendation: We encourage the Organization to formalize internal control procedures for the payroll approval process and to monitor those procedures. Views of responsible officials and planned corrective actions: Management of Barium Springs Home for Children agrees with this finding. Management of Barium Springs Home for Children will formalize internal control procedures related to approval of payroll prior to submission. Management will monitor those procedures to ensure they are performed.
Finding 2023-002
Criteria: When spending federal grant and loan award funds, non‐federal entities are required to adopt written Uniform Guidance policies that conform to applicable federal law and the Uniform Guidance (various sections of 2 C.F.R. 200). Condition: Barium Springs Home for Children did not have written policies and procedures to comply with the Uniform Guidance standards and federal awards were received and expended during the year ended September 30, 2023. Effect: Barium Springs Home for Children could be noncompliant with Uniform Guidance policies. Cause: Employees were unaware of the Uniform Guidance policy requirements. Recommendation: We recommend that Barium Springs Home for Children implement written policies and procedures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions: Management of Barium Springs Home for Children agree with this finding. Management at Barium Springs Home for Children will formalize and implement written policies that comply with Uniform Guidance standards. -
Finding 2023-001
Criteria: Internal control procedures over payroll provide reasonable assurance regarding reduced opportunity for fraud or error in recording payroll. Condition: During internal controls testing for payroll, we noted that there are no formal policies in place for approval of payroll before it is submitted. Effect: Barium Springs Home for Children runs the risk of employees committing errors or potential fraud with payroll. Cause: Formal internal control procedures are not in place that would prevent or detect fraud. Recommendation: We encourage the Organization to formalize internal control procedures for the payroll approval process and to monitor those procedures. Views of responsible officials and planned corrective actions: Management of Barium Springs Home for Children agrees with this finding. Management of Barium Springs Home for Children will formalize internal control procedures related to approval of payroll prior to submission. Management will monitor those procedures to ensure they are performed.
Finding 2023-002
Criteria: When spending federal grant and loan award funds, non‐federal entities are required to adopt written Uniform Guidance policies that conform to applicable federal law and the Uniform Guidance (various sections of 2 C.F.R. 200). Condition: Barium Springs Home for Children did not have written policies and procedures to comply with the Uniform Guidance standards and federal awards were received and expended during the year ended September 30, 2023. Effect: Barium Springs Home for Children could be noncompliant with Uniform Guidance policies. Cause: Employees were unaware of the Uniform Guidance policy requirements. Recommendation: We recommend that Barium Springs Home for Children implement written policies and procedures to ensure compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions: Management of Barium Springs Home for Children agree with this finding. Management at Barium Springs Home for Children will formalize and implement written policies that comply with Uniform Guidance standards. -