FAC Explorer

Audit 305433

FY End
2023-12-31
Total Expended
$99.25M
Findings
2
Programs
6
Organization: Aarp Foundation (DC)
Year: 2023 Accepted: 2024-05-03
Auditor: Grant Thornton LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
395808 2023-001 Significant Deficiency - G
972250 2023-001 Significant Deficiency - G

Programs

ALN Program Spent Major Findings
21.006 Tax Counseling for the Elderly $10.94M Yes 0
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $2.20M - 0
17.235 Senior Community Service Employment Program $1.30M Yes 0
16.726 Juvenile Mentoring Program $722,303 - 0
94.021 Volunteer Generation Fund $689,562 - 0
94.006 Americorps $416,895 - 0

Contacts

Name Title Type
DFLCMJX35UW8 Patricia Shannon Auditee
2024343399 Nicholas Lazzaruolo Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the federal grant expenditures of AARP Foundation (the “Foundation”) for the year ended December 31, 2023. The Schedule was prepared using the accrual basis of accounting and is 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 Foundation, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Foundation. Therefore, some amounts presented in the Schedule may differ from amounts presented in the financial statements. De Minimis Rate Used: N Rate Explanation: The Foundation did not utilize the 10% de minimis indirect cost rate described in 2 CFR 200.414, Indirect (F&A) Costs of the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the federal grant expenditures of AARP Foundation (the “Foundation”) for the year ended December 31, 2023. The Schedule was prepared using the accrual basis of accounting and is 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 Foundation, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Foundation. Therefore, some amounts presented in the Schedule may differ from amounts presented in the financial statements.
Title: NOTE 2 - INDIRECT COSTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the federal grant expenditures of AARP Foundation (the “Foundation”) for the year ended December 31, 2023. The Schedule was prepared using the accrual basis of accounting and is 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 Foundation, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Foundation. Therefore, some amounts presented in the Schedule may differ from amounts presented in the financial statements. De Minimis Rate Used: N Rate Explanation: The Foundation did not utilize the 10% de minimis indirect cost rate described in 2 CFR 200.414, Indirect (F&A) Costs of the Uniform Guidance. The Foundation did not utilize the 10% de minimis indirect cost rate described in 2 CFR 200.414, Indirect (F&A) Costs of the Uniform Guidance.

Finding Details

Finding 2023-001
Criteria: In accordance with 20 CFR section 641.873, The amount of federal funds expended for enrollee wages and fringe benefits shall be no less than 75 percent of the grant except in those instances in which a grantee has requested, and DOL has approved such request, to use not less than 65 percent of the grant funds to pay for participant wage and fringe benefits so as to use up to an additional 10 percent of grant funds for participant training and supportive services. Condition and Effect: For the Foundation’s grant number AD38312PH0 for the grant year ended June 30, 2023, federal funds expended for enrollee wages and benefits totaled $34,551,921, or approximately 74% of total federal funds expended of $46,649,614. As such, the Foundation did not meet the earmarking requirement under 20 CFR section 641.873 for this award. Context: In January 2024, the Foundation was notified by the U.S. Department of Labor that the entity had not met the earmarking requirement for grant number AD38312PH0 for the grant year ended June 30, 2023. During our audit, we tested compliance with earmarking requirements for 8 of 14 additional awards within ALN 17.235 that ended during the Foundation’s fiscal year ended December 31, 2023. No additional exceptions were noted. Cause: The Foundation has policies and procedures in place to monitor compliance with earmarking requirements. In 2023, there was a breakdown in the operation of these controls, whereby SCSEP staff responsible for monitoring the earmarking requirement did not communicate noncompliance to those responsible for reporting. Consequently, no action was taken to address noncompliance with 20 CFR section 641.873 for grant number AD38312PH0 prior to notification of noncompliance being received from the U.S. Department of Labor. Questioned Costs: $435,289 Recommendation: We recommend that the Foundation strengthen its internal controls over compliance with earmarking requirements to ensure timely identification of and corrective action over unmet enrollee wages and fringe benefits expenditures. Views of Responsible Officials: The Foundation concurs with this finding. Also refer to the Corrective Action Plan.
Finding 2023-001
Criteria: In accordance with 20 CFR section 641.873, The amount of federal funds expended for enrollee wages and fringe benefits shall be no less than 75 percent of the grant except in those instances in which a grantee has requested, and DOL has approved such request, to use not less than 65 percent of the grant funds to pay for participant wage and fringe benefits so as to use up to an additional 10 percent of grant funds for participant training and supportive services. Condition and Effect: For the Foundation’s grant number AD38312PH0 for the grant year ended June 30, 2023, federal funds expended for enrollee wages and benefits totaled $34,551,921, or approximately 74% of total federal funds expended of $46,649,614. As such, the Foundation did not meet the earmarking requirement under 20 CFR section 641.873 for this award. Context: In January 2024, the Foundation was notified by the U.S. Department of Labor that the entity had not met the earmarking requirement for grant number AD38312PH0 for the grant year ended June 30, 2023. During our audit, we tested compliance with earmarking requirements for 8 of 14 additional awards within ALN 17.235 that ended during the Foundation’s fiscal year ended December 31, 2023. No additional exceptions were noted. Cause: The Foundation has policies and procedures in place to monitor compliance with earmarking requirements. In 2023, there was a breakdown in the operation of these controls, whereby SCSEP staff responsible for monitoring the earmarking requirement did not communicate noncompliance to those responsible for reporting. Consequently, no action was taken to address noncompliance with 20 CFR section 641.873 for grant number AD38312PH0 prior to notification of noncompliance being received from the U.S. Department of Labor. Questioned Costs: $435,289 Recommendation: We recommend that the Foundation strengthen its internal controls over compliance with earmarking requirements to ensure timely identification of and corrective action over unmet enrollee wages and fringe benefits expenditures. Views of Responsible Officials: The Foundation concurs with this finding. Also refer to the Corrective Action Plan.