Audit 308282

FY End
2023-12-31
Total Expended
$3.58M
Findings
2
Programs
7
Year: 2023 Accepted: 2024-06-06

Organization Exclusion Status:

Checking exclusion status...

Contacts

Name Title Type
L1ZDNEWP1ZG5 Nelson Nava Auditee
4343843131 Amy Gallagher 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 PRINCIPALES CONTAINED IN UNIFORM GUIDANCE WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. PASSTHROUGH ENTITY IDENTIFYING NUMBERS ARE PRESENTED WHERE AVAILABLE. De Minimis Rate Used: N Rate Explanation: HUMANKIND HAS ELECTED NOT TO USE THE TEN PERCENT DE MINIMUS INDIRECT COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. THE ACCOMPANYING SCHEDULE OF FEDERAL AWARDS (THE SCHEDULE) INCLUDES THE FEDERAL GRANT ACTIVITY OF HUMANKIND UNDER PROGRAMS OF THE FEDERAL GOVERNMENT FOR THE YEAR ENDED DECEMBER 31, 2023. THE INFORMATION IN THIS SCHEDULE IS PRESENTED IN ACCORDANCE WITH THE REQUIREMENTS OF TITEL 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 SELECTED PORTON OF THE OPERATIONS OF HUMANKIND, IT IS NOT INTENDED TO AND DOES NOT PRESENT THE FINANCIAL POSITION, CHANGES IN NET ASSETS OR CASH FLOWS OF HUMANKIND.
Title: 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 PRINCIPALES CONTAINED IN UNIFORM GUIDANCE WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. PASSTHROUGH ENTITY IDENTIFYING NUMBERS ARE PRESENTED WHERE AVAILABLE. De Minimis Rate Used: N Rate Explanation: HUMANKIND HAS ELECTED NOT TO USE THE TEN PERCENT DE MINIMUS INDIRECT COST RATE 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 PRINCIPALES CONTAINED IN UNIFORM GUIDANCE WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. PASSTHROUGH ENTITY IDENTIFYING NUMBERS ARE PRESENTED WHERE AVAILABLE.
Title: 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 PRINCIPALES CONTAINED IN UNIFORM GUIDANCE WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. PASSTHROUGH ENTITY IDENTIFYING NUMBERS ARE PRESENTED WHERE AVAILABLE. De Minimis Rate Used: N Rate Explanation: HUMANKIND HAS ELECTED NOT TO USE THE TEN PERCENT DE MINIMUS INDIRECT COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. HUMANKIND HAS ELECTED NOT TO USE THE TEN PERCENT DE MINUMUS INDIRECT COST RATE ALLOWED UNDER UNIFORM GUIDANCE.
Title: SUBRECIPIENTS Accounting Policies: EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE ACCRUAL BASIS OF ACCOUNTING. SUCH EXPENDITURES ARE RECOGNIZED FOLLOWING THE COST PRINCIPALES CONTAINED IN UNIFORM GUIDANCE WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. PASSTHROUGH ENTITY IDENTIFYING NUMBERS ARE PRESENTED WHERE AVAILABLE. De Minimis Rate Used: N Rate Explanation: HUMANKIND HAS ELECTED NOT TO USE THE TEN PERCENT DE MINIMUS INDIRECT COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. NO AWARDS WERE PASSED THROUGH TO SUBRECIPIENTS.
Title: RELATIONSHIP TO THE FINANCIAL STATEMENTS Accounting Policies: EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE ACCRUAL BASIS OF ACCOUNTING. SUCH EXPENDITURES ARE RECOGNIZED FOLLOWING THE COST PRINCIPALES CONTAINED IN UNIFORM GUIDANCE WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. PASSTHROUGH ENTITY IDENTIFYING NUMBERS ARE PRESENTED WHERE AVAILABLE. De Minimis Rate Used: N Rate Explanation: HUMANKIND HAS ELECTED NOT TO USE THE TEN PERCENT DE MINIMUS INDIRECT COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. FEDERAL EXPENDITURES AND REVENUES ARE REPORTED IN HUMANKIND'S FINANCIAL STATEMENTS AS FOLLOWS: GRANTS $6,128,834 LESS: NON-FEDERAL GRANTS (2,545,276) = FEDERAL GRANTS $3,583,558

Finding Details

CRITERIA: A HEAD START AGENCY MUST SHARE ACCURATE AND REGULAR INFORMATION WITH THE GOVERNING BODY AND THE POLICY COUNCIL INCLUDING MONTHLY FINANCIAL STATEMENTS, INCLUDING CREDIT CARD EXPENDITURES, MONTHLY PORGRAM INFORMATION, AND THE FINANCIAL AUDIT. CONDITION: FINANCIAL AND PROGRAM INFORMATION THAT WERE PROVIDED DID NOT INCLUDE CREDIT CARD EXPENDITURES. CAUSE: THE BOARD OF DIRECTORS AND POLICY COUNCIL RECEIVED PROGRAM INFORMATION, FINANCIAL STATEMENTS AND ENROLLMENT REPORTS BUT THEY DID NOT INCLUDE THE REQUIRED CREDIT CARD EXPENDITURES. EFFECT: THE ABSENCE OF CREDIT CARDS BEING PROVIDED TO THE BOARD OF DIRECTORS RESULTED IN HUMANKIND NOT BEING IN COMPLIANCE WITH THE SPECIAL TESTS AND PROVISIONS REQUIREMENTS OF THE HEAD START GRANT. THERE ARE NO QUESTIONED COSTS AS A RESULT OF FAILING TO MEET THIS REQUIREMENT. RECOMMENDATION: MANAGEMENT SHOULD INCLUDE CREDIT CARD EXPENDITURES WITH THE OTHER INFORMATION TO BE PROVIDED TO THE GOVERNING BODIES ON A MONTHLY BASIS AS REQUIRED BY TEH GRANT. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: MANAGEMENT AGREES WITH TEH AUDITOR'S RECOMMENDATION AND THE FOLLOWING ACTION WAS TAKEN TO IMPROVE THE SITUATION. STARTING IN 2024, THE BOARD OF DIRECTORS RECEIVES A MONTHLY PACKET ALONG WITH THE HEAD START POLICY COUNCIL THAT CONTAINS ALL NECESSARY MONTHLY FINANCIAL AND PROGRAM REQUIREMENTS, INCLUDING CREDIT CARD EXPENDITURES.
CRITERIA: A HEAD START AGENCY MUST SHARE ACCURATE AND REGULAR INFORMATION WITH THE GOVERNING BODY AND THE POLICY COUNCIL INCLUDING MONTHLY FINANCIAL STATEMENTS, INCLUDING CREDIT CARD EXPENDITURES, MONTHLY PORGRAM INFORMATION, AND THE FINANCIAL AUDIT. CONDITION: FINANCIAL AND PROGRAM INFORMATION THAT WERE PROVIDED DID NOT INCLUDE CREDIT CARD EXPENDITURES. CAUSE: THE BOARD OF DIRECTORS AND POLICY COUNCIL RECEIVED PROGRAM INFORMATION, FINANCIAL STATEMENTS AND ENROLLMENT REPORTS BUT THEY DID NOT INCLUDE THE REQUIRED CREDIT CARD EXPENDITURES. EFFECT: THE ABSENCE OF CREDIT CARDS BEING PROVIDED TO THE BOARD OF DIRECTORS RESULTED IN HUMANKIND NOT BEING IN COMPLIANCE WITH THE SPECIAL TESTS AND PROVISIONS REQUIREMENTS OF THE HEAD START GRANT. THERE ARE NO QUESTIONED COSTS AS A RESULT OF FAILING TO MEET THIS REQUIREMENT. RECOMMENDATION: MANAGEMENT SHOULD INCLUDE CREDIT CARD EXPENDITURES WITH THE OTHER INFORMATION TO BE PROVIDED TO THE GOVERNING BODIES ON A MONTHLY BASIS AS REQUIRED BY TEH GRANT. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: MANAGEMENT AGREES WITH TEH AUDITOR'S RECOMMENDATION AND THE FOLLOWING ACTION WAS TAKEN TO IMPROVE THE SITUATION. STARTING IN 2024, THE BOARD OF DIRECTORS RECEIVES A MONTHLY PACKET ALONG WITH THE HEAD START POLICY COUNCIL THAT CONTAINS ALL NECESSARY MONTHLY FINANCIAL AND PROGRAM REQUIREMENTS, INCLUDING CREDIT CARD EXPENDITURES.