FAC Explorer

Audit 303847

FY End
2023-12-31
Total Expended
$7.24M
Findings
2
Programs
7
Organization: Families in Transition, Inc. and Subsidiaries (NH)
Year: 2023 Accepted: 2024-04-18
Auditor: Berry Dunn McNeil & Parker LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393701 2023-001 Material Weakness - P
970143 2023-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $955,704 Yes 1
93.959 Block Grants for Prevention and Treatment of Substance Abuse $741,118 - 0
14.239 Home Investment Partnerships Program $436,958 Yes 0
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $414,656 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $377,851 - 0
93.788 Opioid Str $278,421 - 0
14.267 Continuum of Care Program $24,235 - 0

Contacts

Name Title Type
CVHFYSRJ6EQ6 Dan Kern Auditee
6036419441 Ryan Gough Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amount reported on the Schedule for the Coronavirus State and Local Fiscal Recovery Funds, Federal AL Number 21.027, includes $179,092 of expenditures incurred during the year ended December 31, 2022 not included in the Schedule for the year ended December 31, 2022. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Families in Transition, Inc. and Subsidiaries (the Organization) under programs of the federal government for the year ended December 31, 2023. The information in the 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). Because the Schedule presents only a portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: Loan Outstanding Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amount reported on the Schedule for the Coronavirus State and Local Fiscal Recovery Funds, Federal AL Number 21.027, includes $179,092 of expenditures incurred during the year ended December 31, 2022 not included in the Schedule for the year ended December 31, 2022. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate. The HOME Investment Partnerships Program loan balances outstanding were $3,513,436 as of December 31, 2023.
Title: Other Disclosure Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amount reported on the Schedule for the Coronavirus State and Local Fiscal Recovery Funds, Federal AL Number 21.027, includes $179,092 of expenditures incurred during the year ended December 31, 2022 not included in the Schedule for the year ended December 31, 2022. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate. The Organization’s consolidated financial statements include the operations of HB-AH, LLC, which expended $291,886 in federal awards which are not included in the Organization’s Schedule for the year ended December 31, 2023 because the applicability of Schedule reporting under the Uniform Guidance was determined in conjunction with the respective stand-alone audit of HB-AH, LLC’s financial statements

Finding Details

Finding 2023-001
Finding Number: 2023-001 Programs Affected: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: The Organization is responsible for designing, implementing and maintaining effective internal controls over compliance that provide reasonable assurance that the internal controls will prevent misstatements or detect and correct misstatements on a timely basis, intentional or unintentional, from occurring. Condition Found: While comparing and reconciling the schedule of expenditures of federal awards (SEFA) to the consolidated financial statements, we noted one revenue entry was included in the SEFA which related to expenses incurred during the year ended December 31, 2022. Assistance Listing 21.027 was understated by approximately $179,000 for the year ended December 31, 2022 and Assistance Listing 21.027 was overstated by approximately $179,000 for the year ended December 31, 2023. The amount was recorded correct for the program year, but not the agency fiscal year. Cause and Effect: The staff member that created the revenue entry should have split it between December 2022 and January 2023. The error was overlooked by the entry reviewer. The condition resulted in management not identifying all expenditures to be included in the SEFA in 2022, which could have resulted in incomplete information reported to users of the SEFA. Questioned Costs: N/A Identification of Repeat Findings:N/A Recommendation:We recommend the Organization implement a tracking system to identify and report all expenditures of federal awards on the SEFA in compliance with the requirements of the Uniform Guidance. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. See attached Corrective Action Plan.
Finding 2023-001
Finding Number: 2023-001 Programs Affected: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: The Organization is responsible for designing, implementing and maintaining effective internal controls over compliance that provide reasonable assurance that the internal controls will prevent misstatements or detect and correct misstatements on a timely basis, intentional or unintentional, from occurring. Condition Found: While comparing and reconciling the schedule of expenditures of federal awards (SEFA) to the consolidated financial statements, we noted one revenue entry was included in the SEFA which related to expenses incurred during the year ended December 31, 2022. Assistance Listing 21.027 was understated by approximately $179,000 for the year ended December 31, 2022 and Assistance Listing 21.027 was overstated by approximately $179,000 for the year ended December 31, 2023. The amount was recorded correct for the program year, but not the agency fiscal year. Cause and Effect: The staff member that created the revenue entry should have split it between December 2022 and January 2023. The error was overlooked by the entry reviewer. The condition resulted in management not identifying all expenditures to be included in the SEFA in 2022, which could have resulted in incomplete information reported to users of the SEFA. Questioned Costs: N/A Identification of Repeat Findings:N/A Recommendation:We recommend the Organization implement a tracking system to identify and report all expenditures of federal awards on the SEFA in compliance with the requirements of the Uniform Guidance. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. See attached Corrective Action Plan.