FAC Explorer

Audit 309721

FY End
2023-09-30
Total Expended
$962,916
Findings
6
Programs
3
Organization: Agency for Substance Abuse Prevention, Inc. (AL)
Year: 2023 Accepted: 2024-06-24
Auditor: Gerald G Pentecost JR CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401811 2023-001 Material Weakness Yes P
401812 2023-001 Material Weakness Yes P
401813 2023-001 Material Weakness Yes P
978253 2023-001 Material Weakness Yes P
978254 2023-001 Material Weakness Yes P
978255 2023-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
93.959 Block Grants for Prevention and Treatment of Substance Abuse $693,554 Yes 1
93.136 Injury Prevention and Control Research and State and Community Based Programs $180,000 - 1
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $89,362 - 1

Contacts

Name Title Type
E86EERXPYBS5 Seyram Selase Auditee
2568314436 Gerald Pentecost Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Agency for Substance Abuse Prevention, Inc. under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniformm Administrative Requirements, Cost Principles, and Audit Requirements Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Agency for Substance Abuse Prevention, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Agency for Substance Abuse Prevention, Inc. 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 cerain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Agency for Substance Abuse Prevention, Inc. has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Agency for Substance Abuse Prevention, Inc. under programs of the federal government for the year ended September 30, 2023. 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 Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Agency for Substance Abuse Prevention, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Agency for Substance Abuse Prevention, Inc.
Title: Note 2 Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Agency for Substance Abuse Prevention, Inc. under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniformm Administrative Requirements, Cost Principles, and Audit Requirements Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Agency for Substance Abuse Prevention, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Agency for Substance Abuse Prevention, Inc. 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 cerain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Agency for Substance Abuse Prevention, Inc. has elected to use the 10-percent de minimis 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 principles contained in the Uniform Guidance, wherein cerain types of expenditures are not allowable or are limited as to reimbursement.

Finding Details

Finding 2023-001
2023-001 Segregation of Duties Criteria: A basic internal control over financial reporting is the segregation of duties of transaction processing, record keeping, reconciliation, and custody of assets. Condition: This is an inherent limitation for entities that are small in size and thus, have limited staff to perform designated functions. Context/Cause: During our audit, we noted that duties were not segregated in a number of areas where small adjustments to the policies of the Organization could help to further facilitate this important control. These areas include cash disbursements, bank reconciliation, customer billing, cash receipts and collections, and approval of journal entries. Effects: Lack of segregation of duties and a corresponding lack of monitoring and oversight increases exposure to misappropriation of assets and errors in financial reporting. Recommendation; We recommend that management continue to evaluate the procedures and policies used in the accounting area and continue to segregate duties where possible. Additional oversight, monitoring, and approval will be necessary in areas where duties cannot be segregated at an optimal level due to limitations in staff size. Auditee’s Response; Management has issued written policies and required training of all employees that handle financial transactions and has continually evaluated processes to find ways to segregate duties where possible. Management and the board of directors continue to oversee operations closely requiring approvals for all transactions.
Finding 2023-001
2023-001 Segregation of Duties Criteria: A basic internal control over financial reporting is the segregation of duties of transaction processing, record keeping, reconciliation, and custody of assets. Condition: This is an inherent limitation for entities that are small in size and thus, have limited staff to perform designated functions. Context/Cause: During our audit, we noted that duties were not segregated in a number of areas where small adjustments to the policies of the Organization could help to further facilitate this important control. These areas include cash disbursements, bank reconciliation, customer billing, cash receipts and collections, and approval of journal entries. Effects: Lack of segregation of duties and a corresponding lack of monitoring and oversight increases exposure to misappropriation of assets and errors in financial reporting. Recommendation; We recommend that management continue to evaluate the procedures and policies used in the accounting area and continue to segregate duties where possible. Additional oversight, monitoring, and approval will be necessary in areas where duties cannot be segregated at an optimal level due to limitations in staff size. Auditee’s Response; Management has issued written policies and required training of all employees that handle financial transactions and has continually evaluated processes to find ways to segregate duties where possible. Management and the board of directors continue to oversee operations closely requiring approvals for all transactions.
Finding 2023-001
2023-001 Segregation of Duties Criteria: A basic internal control over financial reporting is the segregation of duties of transaction processing, record keeping, reconciliation, and custody of assets. Condition: This is an inherent limitation for entities that are small in size and thus, have limited staff to perform designated functions. Context/Cause: During our audit, we noted that duties were not segregated in a number of areas where small adjustments to the policies of the Organization could help to further facilitate this important control. These areas include cash disbursements, bank reconciliation, customer billing, cash receipts and collections, and approval of journal entries. Effects: Lack of segregation of duties and a corresponding lack of monitoring and oversight increases exposure to misappropriation of assets and errors in financial reporting. Recommendation; We recommend that management continue to evaluate the procedures and policies used in the accounting area and continue to segregate duties where possible. Additional oversight, monitoring, and approval will be necessary in areas where duties cannot be segregated at an optimal level due to limitations in staff size. Auditee’s Response; Management has issued written policies and required training of all employees that handle financial transactions and has continually evaluated processes to find ways to segregate duties where possible. Management and the board of directors continue to oversee operations closely requiring approvals for all transactions.
Finding 2023-001
2023-001 Segregation of Duties Criteria: A basic internal control over financial reporting is the segregation of duties of transaction processing, record keeping, reconciliation, and custody of assets. Condition: This is an inherent limitation for entities that are small in size and thus, have limited staff to perform designated functions. Context/Cause: During our audit, we noted that duties were not segregated in a number of areas where small adjustments to the policies of the Organization could help to further facilitate this important control. These areas include cash disbursements, bank reconciliation, customer billing, cash receipts and collections, and approval of journal entries. Effects: Lack of segregation of duties and a corresponding lack of monitoring and oversight increases exposure to misappropriation of assets and errors in financial reporting. Recommendation; We recommend that management continue to evaluate the procedures and policies used in the accounting area and continue to segregate duties where possible. Additional oversight, monitoring, and approval will be necessary in areas where duties cannot be segregated at an optimal level due to limitations in staff size. Auditee’s Response; Management has issued written policies and required training of all employees that handle financial transactions and has continually evaluated processes to find ways to segregate duties where possible. Management and the board of directors continue to oversee operations closely requiring approvals for all transactions.
Finding 2023-001
2023-001 Segregation of Duties Criteria: A basic internal control over financial reporting is the segregation of duties of transaction processing, record keeping, reconciliation, and custody of assets. Condition: This is an inherent limitation for entities that are small in size and thus, have limited staff to perform designated functions. Context/Cause: During our audit, we noted that duties were not segregated in a number of areas where small adjustments to the policies of the Organization could help to further facilitate this important control. These areas include cash disbursements, bank reconciliation, customer billing, cash receipts and collections, and approval of journal entries. Effects: Lack of segregation of duties and a corresponding lack of monitoring and oversight increases exposure to misappropriation of assets and errors in financial reporting. Recommendation; We recommend that management continue to evaluate the procedures and policies used in the accounting area and continue to segregate duties where possible. Additional oversight, monitoring, and approval will be necessary in areas where duties cannot be segregated at an optimal level due to limitations in staff size. Auditee’s Response; Management has issued written policies and required training of all employees that handle financial transactions and has continually evaluated processes to find ways to segregate duties where possible. Management and the board of directors continue to oversee operations closely requiring approvals for all transactions.
Finding 2023-001
2023-001 Segregation of Duties Criteria: A basic internal control over financial reporting is the segregation of duties of transaction processing, record keeping, reconciliation, and custody of assets. Condition: This is an inherent limitation for entities that are small in size and thus, have limited staff to perform designated functions. Context/Cause: During our audit, we noted that duties were not segregated in a number of areas where small adjustments to the policies of the Organization could help to further facilitate this important control. These areas include cash disbursements, bank reconciliation, customer billing, cash receipts and collections, and approval of journal entries. Effects: Lack of segregation of duties and a corresponding lack of monitoring and oversight increases exposure to misappropriation of assets and errors in financial reporting. Recommendation; We recommend that management continue to evaluate the procedures and policies used in the accounting area and continue to segregate duties where possible. Additional oversight, monitoring, and approval will be necessary in areas where duties cannot be segregated at an optimal level due to limitations in staff size. Auditee’s Response; Management has issued written policies and required training of all employees that handle financial transactions and has continually evaluated processes to find ways to segregate duties where possible. Management and the board of directors continue to oversee operations closely requiring approvals for all transactions.