Audit 303891

FY End
2023-08-31
Total Expended
$2.77M
Findings
14
Programs
2
Organization: Serenity Foundation of Texas (TX)
Year: 2023 Accepted: 2024-04-18

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
393717 2023-001 Significant Deficiency - P
393718 2023-001 Significant Deficiency - P
393719 2023-001 Significant Deficiency - P
393720 2023-001 Significant Deficiency - P
393721 2023-001 Significant Deficiency - P
393722 2023-001 Significant Deficiency - P
393723 2023-001 Significant Deficiency - P
970159 2023-001 Significant Deficiency - P
970160 2023-001 Significant Deficiency - P
970161 2023-001 Significant Deficiency - P
970162 2023-001 Significant Deficiency - P
970163 2023-001 Significant Deficiency - P
970164 2023-001 Significant Deficiency - P
970165 2023-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
93.959 Substance Abuse Prevention Block Grant $250,841 Yes 1
93.959 Substance Abuse Recovery Support Block Grant $153,166 Yes 1

Contacts

Name Title Type
EEGNGC6LP7R8 Shellie Gibson Auditee
3256736489 Jeff Graham 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 of federal awards are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimburesment. De Minimis Rate Used: N Rate Explanation: The auditee did not use de minimis cost rate. The schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity for the Foundation under programs of the federal government for the year ended August 31, 2023. 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 Audit of States, Local Governments, and Non-Profit Organizations. All federal awards received directly from federal agencies as well as awards passed through other government agencies are included in the schedule. Because the schedule presents only a selected portion of the operations of the Foundation, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Foundation.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures of federal awards are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimburesment. De Minimis Rate Used: N Rate Explanation: The auditee did not use de minimis cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures of federal awards 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.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures of federal awards are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimburesment. De Minimis Rate Used: N Rate Explanation: The auditee did not use de minimis cost rate. The Foundation's indirect cost rate is based on 16.93% of direct salaries, wages, and fringe benefits; it has elected not to use the 10% de minimis cost rate as permitted in the Uniform Guidance.

Finding Details

Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.
Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.
Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.
Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.
Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.
Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.
Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.
Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.
Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.
Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.
Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.
Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.
Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.
Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.