FAC Explorer

Audit 310907

FY End
2023-06-30
Total Expended
$17.96M
Findings
2
Programs
11
Organization: Hampton Roads Community Action Program, Inc. (VA)
Year: 2023 Accepted: 2024-06-28
Auditor: Pbmares LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
404123 2023-002 Significant Deficiency - B
980565 2023-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $985,011 Yes 0
93.600 Head Start $772,820 Yes 0
17.270 Reintegration of Ex-Offenders $440,343 - 0
64.033 Va Supportive Services for Veteran Families Program $430,249 - 0
93.569 Community Services Block Grant $114,500 - 0
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $79,797 - 0
14.169 Housing Counseling Assistance Program $67,486 - 0
14.416 Education and Outreach Initiatives $26,781 - 0
14.218 Community Development Block Grants/entitlement Grants $20,000 - 0
97.024 Emergency Food and Shelter National Board Program $19,219 - 0
93.558 Temporary Assistance for Needy Families $4,895 - 0

Contacts

Name Title Type
CK4TYNDHPLA5 Audrea Lambert Auditee
7572470379 Shawn Middleton 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 Hampton Roads Community Action Program, Inc. under programs of the federal government for the year ended June 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Hampton Roads Community Action Program Inc., it is not intended to and does not present the financial position, change in net assets, or cash flows of Hampton Roads Community Action Program, 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 certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: HRCAP has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Hampton Roads Community Action Program, Inc. under programs of the federal government for the year ended June 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Hampton Roads Community Action Program Inc., it is not intended to and does not present the financial position, change in net assets, or cash flows of Hampton Roads Community Action Program, Inc.
Title: Note 2. Basis of Accounting Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Hampton Roads Community Action Program, Inc. under programs of the federal government for the year ended June 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Hampton Roads Community Action Program Inc., it is not intended to and does not present the financial position, change in net assets, or cash flows of Hampton Roads Community Action Program, 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 certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: HRCAP has not elected to use the 10 percent de minimis indirect cost rate as 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 certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3. Indirect Cost Rate Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Hampton Roads Community Action Program, Inc. under programs of the federal government for the year ended June 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Hampton Roads Community Action Program Inc., it is not intended to and does not present the financial position, change in net assets, or cash flows of Hampton Roads Community Action Program, 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 certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: HRCAP has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. HRCAP has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 4. Sub-recipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Hampton Roads Community Action Program, Inc. under programs of the federal government for the year ended June 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Hampton Roads Community Action Program Inc., it is not intended to and does not present the financial position, change in net assets, or cash flows of Hampton Roads Community Action Program, 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 certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: HRCAP has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. No funds were passed through or provided to sub-recipients during the year ended June 30, 2023.

Finding Details

Finding 2023-002
2023-002 Head Start Cluster – Federal Assistance Listing Number 93.600 – Significant Deficiency in Internal Control over Allowable Costs Criteria: According to federal regulations (2 CFR Part 200), costs charged to federal awards must be allowable, reasonable, allocable, and in the proper period of performance. Costs incurred relating to a future period of performance are to be recognized in that future period and should be deferred until then. Expenditures reported on HRCAP’s Schedule of Expenditures of Federal Awards (SEFA) are reported on the accrual basis of accounting. Condition: During our audit, we identified transactions for the Head Start Cluster included in the SEFA totaling $424,874 relating to the upcoming school year. These transactions were not recorded in the proper period per the terms of the grant. Cause: Internal controls were not effectively implemented to ensure proper recognition of grant terms. Effect or Potential Effect: The effect of errors identified are outlined above and have since been corrected by management. Questioned Costs: Head Start Cluster – Federal Assistance Listing Number 93.600 – $424,874. Identification of Repeat Findings: This is not a repeat finding. Recommendations: We recommend that HRCAP implement internal controls around expense cutoff to ensure all expenses relate to the appropriate period or in this case, school year. Views of Responsible Officials: See management’s accompanying views.
Finding 2023-002
2023-002 Head Start Cluster – Federal Assistance Listing Number 93.600 – Significant Deficiency in Internal Control over Allowable Costs Criteria: According to federal regulations (2 CFR Part 200), costs charged to federal awards must be allowable, reasonable, allocable, and in the proper period of performance. Costs incurred relating to a future period of performance are to be recognized in that future period and should be deferred until then. Expenditures reported on HRCAP’s Schedule of Expenditures of Federal Awards (SEFA) are reported on the accrual basis of accounting. Condition: During our audit, we identified transactions for the Head Start Cluster included in the SEFA totaling $424,874 relating to the upcoming school year. These transactions were not recorded in the proper period per the terms of the grant. Cause: Internal controls were not effectively implemented to ensure proper recognition of grant terms. Effect or Potential Effect: The effect of errors identified are outlined above and have since been corrected by management. Questioned Costs: Head Start Cluster – Federal Assistance Listing Number 93.600 – $424,874. Identification of Repeat Findings: This is not a repeat finding. Recommendations: We recommend that HRCAP implement internal controls around expense cutoff to ensure all expenses relate to the appropriate period or in this case, school year. Views of Responsible Officials: See management’s accompanying views.