FAC Explorer

Audit 306859

FY End
2023-12-31
Total Expended
$2.10M
Findings
2
Programs
4
Organization: Strada Collaborative LLC (IN)
Year: 2023 Accepted: 2024-05-21
Auditor: Ey LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
398158 2023-001 Significant Deficiency - I
974600 2023-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
84.116 Fund for the Improvement of Postsecondary Education $1.43M Yes 1
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $403,612 - 0
17.280 Workforce Investment Act (wia) Dislocated Worker National Reserve Demonstration Grants $226,281 - 0
17.268 H-1b Job Training Grants $35,435 - 0

Contacts

Name Title Type
GPWVDZM7V2A1 Sara Larco Auditee
3175905161 Jon Brothers Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Strada Education Foundation, Inc., under programs of the federal government for the year ended December 31, 2023, and is presented using the accrual basis of accounting. While the Schedule is presented on a consolidated basis for Strada Education Foundation, Inc., all federal award activity is received by Strada Collaborative, LLC (the Company), an Indiana limited liability company, for which Strada Education Foundation, Inc. is the sole member. 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). 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. Because the Schedule presents only a selected portion of the operations of Strada Education Foundation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company. De Minimis Rate Used: N Rate Explanation: The Company did not use the de minimis cost rate. The Company used a cost rate of 8% Modified Total Direct Cost as prescribed by the Department of Education. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Strada Education Foundation, Inc., under programs of the federal government for the year ended December 31, 2023, and is presented using the accrual basis of accounting. While the Schedule is presented on a consolidated basis for Strada Education Foundation, Inc., all federal award activity is received by Strada Collaborative, LLC (the Company), an Indiana limited liability company, for which Strada Education Foundation, Inc. is the sole member. 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). 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. Because the Schedule presents only a selected portion of the operations of Strada Education Foundation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company.
Title: Indirect Cost Rate Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Strada Education Foundation, Inc., under programs of the federal government for the year ended December 31, 2023, and is presented using the accrual basis of accounting. While the Schedule is presented on a consolidated basis for Strada Education Foundation, Inc., all federal award activity is received by Strada Collaborative, LLC (the Company), an Indiana limited liability company, for which Strada Education Foundation, Inc. is the sole member. 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). 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. Because the Schedule presents only a selected portion of the operations of Strada Education Foundation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company. De Minimis Rate Used: N Rate Explanation: The Company did not use the de minimis cost rate. The Company used a cost rate of 8% Modified Total Direct Cost as prescribed by the Department of Education. The Company did not use the de minimis cost rate. The Company used a cost rate of 8% Modified Total Direct Cost as prescribed by the Department of Education.

Finding Details

Finding 2023-001
nformation on Federal Program: Federal Grantor: United States Department of Education Assistance Listing No.: 84.116  Major Program:  Fund for the Improvement of Postsecondary EducationAward Period: January 1, 2021- December 31, 2023 Criteria or specific requirement (including statutory, regulatory or other citation): Section 200.303 states of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Condition: Strada Collaborative, LLC did not have suitably designed internal controls in place over the major program; Fund for the Improvement of Postsecondary Education, related to procurement, suspension and debarment.Cause: Strada Collaborative, LLC did not effectively design internal controls to require validation that all vendors appropriately have a signed contract with a specific addendum related to suspension and debarment prior to payment.Effect or potential effect: Strada Collaborative, LLC enters into a contract with a vendor that has been suspended or debarred resulting in the Company being unable to receive any new awards from the Federal Government or conduct business with the Federal Government.Questioned costs: None Context: We selected a sample of 6 subcontractors (vendors) to test the compliance requirements for procurement, suspension and debarment for the year ended December 31, 2023. We noted one vendor that the Company did not obtain confirmation of suspension and debarment. As this was the only exception, the maximum exposure is $29k.
Finding 2023-001
nformation on Federal Program: Federal Grantor: United States Department of Education Assistance Listing No.: 84.116  Major Program:  Fund for the Improvement of Postsecondary EducationAward Period: January 1, 2021- December 31, 2023 Criteria or specific requirement (including statutory, regulatory or other citation): Section 200.303 states of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Condition: Strada Collaborative, LLC did not have suitably designed internal controls in place over the major program; Fund for the Improvement of Postsecondary Education, related to procurement, suspension and debarment.Cause: Strada Collaborative, LLC did not effectively design internal controls to require validation that all vendors appropriately have a signed contract with a specific addendum related to suspension and debarment prior to payment.Effect or potential effect: Strada Collaborative, LLC enters into a contract with a vendor that has been suspended or debarred resulting in the Company being unable to receive any new awards from the Federal Government or conduct business with the Federal Government.Questioned costs: None Context: We selected a sample of 6 subcontractors (vendors) to test the compliance requirements for procurement, suspension and debarment for the year ended December 31, 2023. We noted one vendor that the Company did not obtain confirmation of suspension and debarment. As this was the only exception, the maximum exposure is $29k.