FAC Explorer

Audit 307039

FY End
2023-08-31
Total Expended
$1.18M
Findings
2
Programs
1
Organization: Brazos Valley Council on Alcohol and Substance Abuse (TX)
Year: 2023 Accepted: 2024-05-23
Auditor: Thompson Derrig & Craig PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
398364 2023-002 Significant Deficiency - B
974806 2023-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1.18M Yes 1

Contacts

Name Title Type
MSV6MS8MWKJ5 Crystal Crowell Auditee
9798463560 Logan Kendrick Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - General Accounting Policies: The Schedule of Expenditures of Federal and State Awards is presented using the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee used a negotiated provisional rate. The Schedule of Expenditures of Federal and State Awards presents the activity of all applicable federal and state award programs of the Brazos Valley Council on Alcohol and Substance Abuse (the Organization). The Organization’s reporting entity is defined in Note 1 of the financial statements. 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 the State of Texas Grant Management Standards (Texas Standards).
Title: Note 2 - Basis of Accounting Accounting Policies: The Schedule of Expenditures of Federal and State Awards is presented using the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee used a negotiated provisional rate. The Schedule of Expenditures of Federal and State Awards is presented using the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements.
Title: Note 3 - Contingencies Accounting Policies: The Schedule of Expenditures of Federal and State Awards is presented using the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee used a negotiated provisional rate. Allowable expenditures of federal and state awards are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the Organization. As of August 31, 2023, the Organization recorded a liability of $66,560 to the Texas Health and Human Services Commission for estimated unallowable expenses as described in Note 12 of the financial statements.
Title: Note 4 - Indirect Cost Rate Accounting Policies: The Schedule of Expenditures of Federal and State Awards is presented using the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee used a negotiated provisional rate. The Organization did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 5 - Insurance in Effect Accounting Policies: The Schedule of Expenditures of Federal and State Awards is presented using the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee used a negotiated provisional rate. For the year ended August 31, 2023, the following insurance coverage was in effect:

Finding Details

Finding 2023-002
Section 3 - Federal and State Award Findings and Questioned Costs Significant Deficiency Indirect Cost Rate Prevention and Treatment of Substance Abuse, CFDA #93.959, Pass-Through Grant #HHS000539700192 Criteria: The Organization is required to utilize a state-issued provisional rate to allocate indirect costs to the associated programs. Condition: Indirect costs reported for the associated programs under pass-through grant #HHS000539700192 exceeded the state-issued rate for the year ended August 31, 2023 by approximately $66,560. Cause: The Organization implemented a new accounting system in fiscal year 2023, and the indirect allocations were configured to automatically run in the system. However, the configuration was not set up to appropriately bifurcate the indirect cost rate amounts from unreportable expenses, resulting in an overstatement of indirect costs reported for the programs. Additionally, there was not an adequate review process in place by management to detect this specific issue. Effect: Expenditures for CFDA #93.959, Pass-Through Grant #HHS000539700192 were overstated by approximately $66,560 related to disallowed indirect costs. Questioned Costs: Indirect costs for CFDA #93.959, Pass-Through Grant #HHS000539700192, totaling approximately $66,560. Context: The finding was isolated to indirect costs only and no findings were identified related to direct costs or other compliance requirements. Additionally, this was the first year the state-issued indirect cost rate was effective for BVCASA, and the Organization has not had a history of any findings related to unallowable expenses in the last several years. Repeat Finding: No Recommendation: Implement review process to recalculate indirect cost rate allocated by the system each month to ensure the amounts are in compliance with the state-issued rate prior to reporting. Views of Responsible Officials and Planned Corrections Actions: Management agrees with the audit finding and a response is included in the corrective action plan.
Finding 2023-002
Section 3 - Federal and State Award Findings and Questioned Costs Significant Deficiency Indirect Cost Rate Prevention and Treatment of Substance Abuse, CFDA #93.959, Pass-Through Grant #HHS000539700192 Criteria: The Organization is required to utilize a state-issued provisional rate to allocate indirect costs to the associated programs. Condition: Indirect costs reported for the associated programs under pass-through grant #HHS000539700192 exceeded the state-issued rate for the year ended August 31, 2023 by approximately $66,560. Cause: The Organization implemented a new accounting system in fiscal year 2023, and the indirect allocations were configured to automatically run in the system. However, the configuration was not set up to appropriately bifurcate the indirect cost rate amounts from unreportable expenses, resulting in an overstatement of indirect costs reported for the programs. Additionally, there was not an adequate review process in place by management to detect this specific issue. Effect: Expenditures for CFDA #93.959, Pass-Through Grant #HHS000539700192 were overstated by approximately $66,560 related to disallowed indirect costs. Questioned Costs: Indirect costs for CFDA #93.959, Pass-Through Grant #HHS000539700192, totaling approximately $66,560. Context: The finding was isolated to indirect costs only and no findings were identified related to direct costs or other compliance requirements. Additionally, this was the first year the state-issued indirect cost rate was effective for BVCASA, and the Organization has not had a history of any findings related to unallowable expenses in the last several years. Repeat Finding: No Recommendation: Implement review process to recalculate indirect cost rate allocated by the system each month to ensure the amounts are in compliance with the state-issued rate prior to reporting. Views of Responsible Officials and Planned Corrections Actions: Management agrees with the audit finding and a response is included in the corrective action plan.