FAC Explorer

Audit 310399

FY End
2023-09-30
Total Expended
$784,397
Findings
4
Programs
1
Organization: Horizons Unlimited, Inc. (WI)
Year: 2023 Accepted: 2024-06-27
Auditor: Kerberrose Sc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
403243 2023-001 Significant Deficiency - P
403244 2023-002 Significant Deficiency - P
979685 2023-001 Significant Deficiency - P
979686 2023-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $784,397 Yes 2

Contacts

Name Title Type
FTMPBKNW7AL7 Jenna Van Den Wildenberg Auditee
9204624805 Jamie Rosin Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - 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. The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Horizons Unlimited, Inc. and is presented in accordance with 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 Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a select portion of the operations of the Organization, it is not intended to, and does not, present the financial position, change in net assets or cash flows of the Organization.
Title: Note 2 - 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 principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under 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 certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance.

Finding Details

Finding 2023-001
Condition: Due to the size of the Organization, various functions are performed by the same person. Criteria: The size of the office staff precludes a proper segregation of functions to assure adequate internal control. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Cause: Limited staff is avaialble to segregate duties. Effect: Because of the lack of segregation duties, unauthorized transactions could occur in the Organization’s operations and errors could be undetected. Recommendation: The duties should be separated as much as possible and compensating controls should be used to compensate for the lack of separation of duties. The Board should rely on its knowledge of the operations of the Organization. Management's Response: The Organization is aware of the lack of segregation of duties caused by the limited size of its staff, and will continue to use other controls, where practical to compensate for this limitation.
Finding 2023-002
Condition: During our audit, we noted that the internal control system does not include a process for preparing the annual audited financial statements, the related disclosures and schedule of expenditures of federal awards in accordance with GAAP. Criteria: Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial position, change in net position, disclosures in the financial statements, and schedule of expenditures of federal awards, in conformity with U.S. Generally Accepted Accounting Principles (GAAP). Cause: Management requested that KerberRose SC assist in preparing a draft of the audited financial statements, including the related footnote disclosures and schedule of expenditures of federal awards. The outsourcing is a result of management’s cost/benefit decision to use our accounting expertise rather than incurring this internal resource cost. Effect: Although the auditors are preparing the financial statements, related footnotes, and schedule of expenditures of federal awards, management of the Organization thoroughly reviews them and accepts responsibility for their completeness and accuracy. Recommendation: We recommend that management continues to make this decision on a cost/benefit basis. Management's Response: Due to limited staffing the Organization will continue to contract with an outside audit firm to complete the statements. Management reviews the financial statements and compares to the Organization’s financial records for completeness and accuracy and accepts responsibility for those financial statements.
Finding 2023-001
Condition: Due to the size of the Organization, various functions are performed by the same person. Criteria: The size of the office staff precludes a proper segregation of functions to assure adequate internal control. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Cause: Limited staff is avaialble to segregate duties. Effect: Because of the lack of segregation duties, unauthorized transactions could occur in the Organization’s operations and errors could be undetected. Recommendation: The duties should be separated as much as possible and compensating controls should be used to compensate for the lack of separation of duties. The Board should rely on its knowledge of the operations of the Organization. Management's Response: The Organization is aware of the lack of segregation of duties caused by the limited size of its staff, and will continue to use other controls, where practical to compensate for this limitation.
Finding 2023-002
Condition: During our audit, we noted that the internal control system does not include a process for preparing the annual audited financial statements, the related disclosures and schedule of expenditures of federal awards in accordance with GAAP. Criteria: Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial position, change in net position, disclosures in the financial statements, and schedule of expenditures of federal awards, in conformity with U.S. Generally Accepted Accounting Principles (GAAP). Cause: Management requested that KerberRose SC assist in preparing a draft of the audited financial statements, including the related footnote disclosures and schedule of expenditures of federal awards. The outsourcing is a result of management’s cost/benefit decision to use our accounting expertise rather than incurring this internal resource cost. Effect: Although the auditors are preparing the financial statements, related footnotes, and schedule of expenditures of federal awards, management of the Organization thoroughly reviews them and accepts responsibility for their completeness and accuracy. Recommendation: We recommend that management continues to make this decision on a cost/benefit basis. Management's Response: Due to limited staffing the Organization will continue to contract with an outside audit firm to complete the statements. Management reviews the financial statements and compares to the Organization’s financial records for completeness and accuracy and accepts responsibility for those financial statements.