Audit 305711

FY End
2021-06-30
Total Expended
$7.59M
Findings
6
Programs
6
Year: 2021 Accepted: 2024-05-07

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
396132 2021-001 Significant Deficiency - E
396133 2021-002 Material Weakness - B
396134 2021-003 Material Weakness - B
972574 2021-001 Significant Deficiency - E
972575 2021-002 Material Weakness - B
972576 2021-003 Material Weakness - B

Contacts

Name Title Type
K2W5MZ4QKEW7 John Watkins Auditee
7075583332 Hayley Geier Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – 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 OMB Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant revenue activity of Catholic Charities of Yolo Solano, Inc., and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 OMB Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
Title: NOTE C – INDIRECT COST RATE 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 OMB Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE D – SUBRECIPIENTS 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 OMB Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. There were no awards passed through to subrecipients.

Finding Details

2021-001. Condition: Documentation of verification of low income status could not be located for eleven selected grants. Criteria: Eligibility for the program required family income below the poverty level. Cause: Proper controls were not in place to maintain proper documentation in client files before payment was authorized. Effect: The cost of the assistance may be disallowed. Context: A sample of 40 grants total $132,263 was selected for audit from a population of 1,267 grants totaling $4,115,244. The test found eleven grants that were not in compliance with questioned costs totaling $34,900. Our sample was a statistically valid sample.
2021-002. Condition: Uncashed and undistributed checks voided from accounting records but remained as outstanding checks in the system that the checks were distributed from causing a difference in the accounting records and payment distributed. Criteria: Funds distributed to eligible participants. Cause: Proper controls were not in place in regards to voiding uncashed and undistributed checks from the accounting system. Effect: The cost of the assistance may be disallowed. Context: A reconciliation between the grant system and the accounting system specifically identified 58 grants totaling $193,731, and 6 grants totaling $23,700 were voided and reissued in the next fiscal year. 45 grants totaling $152,336 were voided and not reissued, 6 grants totaling $16,695 were checks returned from landlords, 1 grant totaling $1,000 was a duplicate entry.
2021-003. Condition: Reimburse administrative expenses are unsupported. Criteria: Administrative expenses are to be properly supported. Cause: Proper controls were not in place to track administrative expenditures appropriately. Effect: The cost of the assistance may be disallowed. Context: A total of $400,000 in administrative expenses are unsupported.
2021-001. Condition: Documentation of verification of low income status could not be located for eleven selected grants. Criteria: Eligibility for the program required family income below the poverty level. Cause: Proper controls were not in place to maintain proper documentation in client files before payment was authorized. Effect: The cost of the assistance may be disallowed. Context: A sample of 40 grants total $132,263 was selected for audit from a population of 1,267 grants totaling $4,115,244. The test found eleven grants that were not in compliance with questioned costs totaling $34,900. Our sample was a statistically valid sample.
2021-002. Condition: Uncashed and undistributed checks voided from accounting records but remained as outstanding checks in the system that the checks were distributed from causing a difference in the accounting records and payment distributed. Criteria: Funds distributed to eligible participants. Cause: Proper controls were not in place in regards to voiding uncashed and undistributed checks from the accounting system. Effect: The cost of the assistance may be disallowed. Context: A reconciliation between the grant system and the accounting system specifically identified 58 grants totaling $193,731, and 6 grants totaling $23,700 were voided and reissued in the next fiscal year. 45 grants totaling $152,336 were voided and not reissued, 6 grants totaling $16,695 were checks returned from landlords, 1 grant totaling $1,000 was a duplicate entry.
2021-003. Condition: Reimburse administrative expenses are unsupported. Criteria: Administrative expenses are to be properly supported. Cause: Proper controls were not in place to track administrative expenditures appropriately. Effect: The cost of the assistance may be disallowed. Context: A total of $400,000 in administrative expenses are unsupported.