Audit 302987

FY End
2023-09-30
Total Expended
$9.16M
Findings
2
Programs
13
Year: 2023 Accepted: 2024-04-09

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
392685 2023-001 Significant Deficiency - L
969127 2023-001 Significant Deficiency - L

Contacts

Name Title Type
HKN9SELF7ND9 Judith Tate Auditee
3347944093 Josh Riley Auditor
No contacts on file

Notes to SEFA

Title: Note A- Scope of Audit Pursuant to the Uniform Guidance Accounting Policies: Basis of Presentation: The Schedule of Expenditures of Federal Awards has been prepared on the modified accrual basis of accounting. Federal grant revenues are recorded for financial reporting purposes when the Commission has met the qualifications for the respective grants. Several programs are funded jointly by state or local appropriations and federal funds. Costs incurred in programs partially funded by federal grants are applied against grant funds to the extent of revenue available when they properly apply to the grant, except as described below. Accrued and Deferred Reimbursement: Various reimbursement procedures are used for federal awards received by the Commission. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year-end represent an excess of expenditures over cash reimbursements received to date. Deferred balances at year-end represent an excess of cash reimbursements received over expenditures to date. Generally, accrued or deferred balances caused by differences in the timing of cash reimbursements and expenditures will be reversed in the remaining grant period. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Southeast Alabama Regional Planning and Development Commission (the "Commission") is an agency of the State of Alabama. All significant operations of the Commission are included in the scope of the Uniform Guidance.
Title: Note B - Fiscal Period Audited Accounting Policies: Basis of Presentation: The Schedule of Expenditures of Federal Awards has been prepared on the modified accrual basis of accounting. Federal grant revenues are recorded for financial reporting purposes when the Commission has met the qualifications for the respective grants. Several programs are funded jointly by state or local appropriations and federal funds. Costs incurred in programs partially funded by federal grants are applied against grant funds to the extent of revenue available when they properly apply to the grant, except as described below. Accrued and Deferred Reimbursement: Various reimbursement procedures are used for federal awards received by the Commission. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year-end represent an excess of expenditures over cash reimbursements received to date. Deferred balances at year-end represent an excess of cash reimbursements received over expenditures to date. Generally, accrued or deferred balances caused by differences in the timing of cash reimbursements and expenditures will be reversed in the remaining grant period. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Single audit testing procedures were performed for program transactions occurring during the fiscal year ended September 30, 2023. Grant and appropriation terms are indicated in the Schedule of Expenditures of Federal Awards.
Title: Note C - Summary of Significant Accounting Policies Accounting Policies: Basis of Presentation: The Schedule of Expenditures of Federal Awards has been prepared on the modified accrual basis of accounting. Federal grant revenues are recorded for financial reporting purposes when the Commission has met the qualifications for the respective grants. Several programs are funded jointly by state or local appropriations and federal funds. Costs incurred in programs partially funded by federal grants are applied against grant funds to the extent of revenue available when they properly apply to the grant, except as described below. Accrued and Deferred Reimbursement: Various reimbursement procedures are used for federal awards received by the Commission. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year-end represent an excess of expenditures over cash reimbursements received to date. Deferred balances at year-end represent an excess of cash reimbursements received over expenditures to date. Generally, accrued or deferred balances caused by differences in the timing of cash reimbursements and expenditures will be reversed in the remaining grant period. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Basis of Presentation: The Schedule of Expenditures of Federal Awards has been prepared on the modified accrual basis of accounting. Federal grant revenues are recorded for financial reporting purposes when the Commission has met the qualifications for the respective grants. Several programs are funded jointly by state or local appropriations and federal funds. Costs incurred in programs partially funded by federal grants are applied against grant funds to the extent of revenue available when they properly apply to the grant, except as described below. Accrued and Deferred Reimbursement: Various reimbursement procedures are used for federal awards received by the Commission. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year-end represent an excess of expenditures over cash reimbursements received to date. Deferred balances at year-end represent an excess of cash reimbursements received over expenditures to date. Generally, accrued or deferred balances caused by differences in the timing of cash reimbursements and expenditures will be reversed in the remaining grant period.
Title: Note D - Value of Outstanding Program Loans Accounting Policies: Basis of Presentation: The Schedule of Expenditures of Federal Awards has been prepared on the modified accrual basis of accounting. Federal grant revenues are recorded for financial reporting purposes when the Commission has met the qualifications for the respective grants. Several programs are funded jointly by state or local appropriations and federal funds. Costs incurred in programs partially funded by federal grants are applied against grant funds to the extent of revenue available when they properly apply to the grant, except as described below. Accrued and Deferred Reimbursement: Various reimbursement procedures are used for federal awards received by the Commission. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year-end represent an excess of expenditures over cash reimbursements received to date. Deferred balances at year-end represent an excess of cash reimbursements received over expenditures to date. Generally, accrued or deferred balances caused by differences in the timing of cash reimbursements and expenditures will be reversed in the remaining grant period. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Program loans receivable balances as of year-end were as follows: "See the Notes to the SEFA for chart/table"
Title: Note E - De Minim is Indirect Rate Accounting Policies: Basis of Presentation: The Schedule of Expenditures of Federal Awards has been prepared on the modified accrual basis of accounting. Federal grant revenues are recorded for financial reporting purposes when the Commission has met the qualifications for the respective grants. Several programs are funded jointly by state or local appropriations and federal funds. Costs incurred in programs partially funded by federal grants are applied against grant funds to the extent of revenue available when they properly apply to the grant, except as described below. Accrued and Deferred Reimbursement: Various reimbursement procedures are used for federal awards received by the Commission. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year-end represent an excess of expenditures over cash reimbursements received to date. Deferred balances at year-end represent an excess of cash reimbursements received over expenditures to date. Generally, accrued or deferred balances caused by differences in the timing of cash reimbursements and expenditures will be reversed in the remaining grant period. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Commission has not elected to use the 10% de minimis indirect rate as allowed in the Uniform Guidance.

Finding Details

Identification of the Federal Program: Assistance Listing Number 93.600 - Head Start, United States Department of Health and Human Services. Award Number: 04CH012146. Type of Finding: Significant Deficiency. Criteria: Program requirements state that grantees must file form SF-425, Federal Financial Report, semiannually, annually, and a final report at the end of the grant period. The semi-annual SF-425 should report cumulative costs through June 30, and is due by July 30. The annual SF-425 should report cumulative costs through December 31, and is due by January 30. The final SF-425 is due by April 30. Grantees must also file form SF-429, Real Property Status Report. The SF-429 should be filed annually and is due on March 31 for the period ended December 31. Condition: For the year ended September 30, 2023, we reviewed the annual SF-425 for the period ended December 31, 2022, the annual SF-429 for the period ended December 31, 2022, and the semi-annual SF-425 for the period ended June 30, 2023, and noted that the annual SF-425 and the annual SF-429 were submitted after the due date stated in the grant agreement. Cause: Program staff did not complete and submit the required reports by the deadline stated in the grant agreement. Potential Effect: Failing to comply with reporting requirements stated in the grant agreement could result in cancellation of funding by the grantor. Recommendation: The program manager should review with staff all requirements for grant reporting and ensure that future reporing deadlines are met. Views of Responsible Official: Reports were not filed timely due to transition between leadership in both the Finance and Head Start Departments. The Executive Director became aware of the reporting issues and during initial training, ensured the Chief Financial Officer and Head Start Director were aware of the reporting requirements noted on the applicable grant agreements.
Identification of the Federal Program: Assistance Listing Number 93.600 - Head Start, United States Department of Health and Human Services. Award Number: 04CH012146. Type of Finding: Significant Deficiency. Criteria: Program requirements state that grantees must file form SF-425, Federal Financial Report, semiannually, annually, and a final report at the end of the grant period. The semi-annual SF-425 should report cumulative costs through June 30, and is due by July 30. The annual SF-425 should report cumulative costs through December 31, and is due by January 30. The final SF-425 is due by April 30. Grantees must also file form SF-429, Real Property Status Report. The SF-429 should be filed annually and is due on March 31 for the period ended December 31. Condition: For the year ended September 30, 2023, we reviewed the annual SF-425 for the period ended December 31, 2022, the annual SF-429 for the period ended December 31, 2022, and the semi-annual SF-425 for the period ended June 30, 2023, and noted that the annual SF-425 and the annual SF-429 were submitted after the due date stated in the grant agreement. Cause: Program staff did not complete and submit the required reports by the deadline stated in the grant agreement. Potential Effect: Failing to comply with reporting requirements stated in the grant agreement could result in cancellation of funding by the grantor. Recommendation: The program manager should review with staff all requirements for grant reporting and ensure that future reporing deadlines are met. Views of Responsible Official: Reports were not filed timely due to transition between leadership in both the Finance and Head Start Departments. The Executive Director became aware of the reporting issues and during initial training, ensured the Chief Financial Officer and Head Start Director were aware of the reporting requirements noted on the applicable grant agreements.