FAC Explorer

Audit 306649

FY End
2022-12-31
Total Expended
$3.29M
Findings
4
Programs
2
Organization: Alianza Americas (IL)
Year: 2022 Accepted: 2024-05-20
Auditor: Prado & Renteria CPAS Prof CORP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
397941 2022-002 Significant Deficiency Yes AB
397942 2022-003 Material Weakness Yes M
974383 2022-002 Significant Deficiency Yes AB
974384 2022-003 Material Weakness Yes M

Programs

ALN Program Spent Major Findings
93.318 Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security $2.57M Yes 2
93.011 National Organizations of State and Local Officials $717,126 - 0

Contacts

Name Title Type
SUC2KGKKSQE5 Oscar Chacon Auditee
8776832908 Hilda Renteria 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. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Organization and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected 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: LOANS AND LOAN GUARANTEES 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. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization did not receive loans or loan guarantees for the year ended December 31, 2022.
Title: NON-CASH ASSISTANCE 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. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization did not receive non-cash assistance for the year ended December 31, 2022.
Title: INSURANCE 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. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization did not receive insurance assistance to reimburse losses for the year ended December 31, 2022.

Finding Details

Finding 2022-002
Finding 2022-002, Adherence and Application of Policies and Procedures for Financial Management - 2021-003 Repeat Finding Federal Agency: U.S. Department of Health and Human Services Program Name: Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security Assistance Listing #: 93.318 Questioned Costs: None Condition/Context We tested a sample of forty transactions for Activities Allowable Cost/Cost Principles. Thirty-one transactions selected for testing did not have evidence that they were approved by upper management. In addition, one transaction had an error in payment, and three transactions were not supported by appropriate documentation. Criteria Per the Organization's Policies and Procedures for Financial Management, upper managemen is responsible for the approval of invoices after they have been reviewed by the individual who procured them. Cause The Organization did not adhere to its Policies and Procedures for Financial Management. Effect Non-adherence and inconsistent application of established policies and procedures did not detect errors on a timely matter. Recommendation We recommend that the Organization adheres to its Policies and Procedures for Financial Management by ensuring expendiures are reviewed and approved by upper management. Organization's Management Response See corrective action plan.
Finding 2022-003
Finding 2022-003, Subrecipient Monitoring - Repeat Finding 2021-003 Federal Agency: U.S. Department of Health and Human Services Program Name: Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security Assistance Listing #: 93.318 Questioned Costs: None Condition/Context: Our audit procedures revealed that subrecipient monitoring was not performed in accordance with standards set forth in the Uniform Guidance. Criteria The Department of Health and Human Services recipients (i.e., Alianza Americas) to ensure monitoring of any subrecipient using federal funds to be consistent with the subrecipient monitoring standards set forth in the Uniform Guidance at 45 CFR 75.351 through 45 CFR 75.353, as applicable. In addition, Uniform Guidance requires that non-Federal entities establish and maintain internal control over the federal awards that provides reasonable assurance that the non-Federal entities are managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Cause The Organization did not monitor and review subrecipient activities in accordance with Uniform Guidance. The Organization's personnel were not trained timely to perform subrecipient monitoring in accordance with Uniform Guidance. Effect The Organization did not comply with Title 45 of the Code of Federal Regulations (CFR) Part 75 as it relates to subrecipient monitoring requirements. Recommendation We recommend that the Organization performs subrecipient monitoring in accordance with Uniform Guidance and that it updates its Policies and Procedures for Financial Management to include subrecipient monitoring process in accordance with Uniform Guidance. Organization's Management Response See corrective action plan.
Finding 2022-002
Finding 2022-002, Adherence and Application of Policies and Procedures for Financial Management - 2021-003 Repeat Finding Federal Agency: U.S. Department of Health and Human Services Program Name: Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security Assistance Listing #: 93.318 Questioned Costs: None Condition/Context We tested a sample of forty transactions for Activities Allowable Cost/Cost Principles. Thirty-one transactions selected for testing did not have evidence that they were approved by upper management. In addition, one transaction had an error in payment, and three transactions were not supported by appropriate documentation. Criteria Per the Organization's Policies and Procedures for Financial Management, upper managemen is responsible for the approval of invoices after they have been reviewed by the individual who procured them. Cause The Organization did not adhere to its Policies and Procedures for Financial Management. Effect Non-adherence and inconsistent application of established policies and procedures did not detect errors on a timely matter. Recommendation We recommend that the Organization adheres to its Policies and Procedures for Financial Management by ensuring expendiures are reviewed and approved by upper management. Organization's Management Response See corrective action plan.
Finding 2022-003
Finding 2022-003, Subrecipient Monitoring - Repeat Finding 2021-003 Federal Agency: U.S. Department of Health and Human Services Program Name: Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security Assistance Listing #: 93.318 Questioned Costs: None Condition/Context: Our audit procedures revealed that subrecipient monitoring was not performed in accordance with standards set forth in the Uniform Guidance. Criteria The Department of Health and Human Services recipients (i.e., Alianza Americas) to ensure monitoring of any subrecipient using federal funds to be consistent with the subrecipient monitoring standards set forth in the Uniform Guidance at 45 CFR 75.351 through 45 CFR 75.353, as applicable. In addition, Uniform Guidance requires that non-Federal entities establish and maintain internal control over the federal awards that provides reasonable assurance that the non-Federal entities are managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Cause The Organization did not monitor and review subrecipient activities in accordance with Uniform Guidance. The Organization's personnel were not trained timely to perform subrecipient monitoring in accordance with Uniform Guidance. Effect The Organization did not comply with Title 45 of the Code of Federal Regulations (CFR) Part 75 as it relates to subrecipient monitoring requirements. Recommendation We recommend that the Organization performs subrecipient monitoring in accordance with Uniform Guidance and that it updates its Policies and Procedures for Financial Management to include subrecipient monitoring process in accordance with Uniform Guidance. Organization's Management Response See corrective action plan.