FAC Explorer

Audit 31162

FY End
2022-06-30
Total Expended
$1.50M
Findings
6
Programs
10
Organization: Ouachita Enrichment Centers, Inc. (AR)
Year: 2022 Accepted: 2023-01-25
Auditor: Little Shaneyfelt Marshall & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30278 2022-001 Significant Deficiency - N
30279 2022-002 Significant Deficiency - L
30280 2022-003 Significant Deficiency - L
606720 2022-001 Significant Deficiency - N
606721 2022-002 Significant Deficiency - L
606722 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $1.23M Yes 3
10.558 Child and Adult Care Food Program $113,276 - 0
93.658 Provider Relief Fund $76,932 - 0
93.658 Child Care and Development Block Grant - America Rescue Plan Act - Child Care Stabilization-Covid 19 $25,000 - 0
10.558 Child and Adult Care Food Program Emergency Costs-Covid-19 $21,857 - 0
93.575 Child Care and Development Block Grant Emergency Food Assistance Program Covid 19 $18,500 - 0
93.498 Social Services Block Grant $14,142 - 0
93.575 Child Care and Development Block Grant - Covid Funds $1,250 - 0
93.667 Foster Care - Title IV E $1,182 - 0
93.575 Child Care and Development Block Grant $122 - 0

Contacts

Name Title Type
TTPKUJDNUEJ4 Cathy Cash Auditee
8708363056 Jeff Shaneyfelt Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal and state grant activity of Ouachita Enrichment Centers,Inc. (the Organization) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule ispresented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,Cost of Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion ofthe operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of theOrganization. The Schedule is presented on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - The Organization received a loan from the U.S. Department of Agriculture Rural Development and the balance as of July 1, 2021, of$1,232,715 is included in the schedule of expenditures of federal awards. Balances outstanding at the end of the audit period were 1210648.
Title: Medicaid Funding Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal and state grant activity of Ouachita Enrichment Centers,Inc. (the Organization) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule ispresented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,Cost of Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion ofthe operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of theOrganization. The Schedule is presented on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Ouachita Enrichment Centers, Inc. recognized $3,753,102 in Medicaid revenue during the year ended June 30, 2022.

Finding Details

Finding 2022-001
Finding 2022-001 Criteria: The Organization must establish a reserve bank account as stated in the program compliance requirements. Condition: The Organization did not open a reserve bank account as required by the program compliance requirements. Context: During substantive testing of cash and the performance of dual-purpose testing of compliance and controls over compliance, it was determined that the Organization had not met the requirement to establish a reserve bank account. Effect: Not establishing a reserve bank account is a stated compliance requirement; this would have the effect of program noncompliance. Cause: The Organization received a loan from United States Department of Agriculture (USDA) Rural Development (RD) and management was not aware of the compliance requirement. Recommendation: The Organization should establish a reserve bank account and make the required deposits.
Finding 2022-002
Criteria: The Organization must file Rural Development (RD) Forms 442-2 and 442-3 as stated in the program compliance requirements.Condition: The Organization has not filed RD Forms 442-2 and 442-3. Context: During the performance of dual-purpose testing of compliance and controls over compliance, it was determined that the Organization had not met the requirement to file RD Forms 442-2 and 442-3. Effect: The filing of RD Forms 442-2 and 442-3 with USDA Rural Development is a stated compliance requirement; this would have the effect of program noncompliance. Cause: The Organization received a loan from USDA Rural Development and management was not aware of the compliance requirement. Recommendation: The Organization should file RD Forms 442-2 and 442-3.
Finding 2022-003
Criteria: The Organization must submit annual audited financial statements to USDA Rural Development. Condition: The Organization did not submit audited financial statements to USDA Rural Development. Context: During the performance of dual-purpose testing of compliance and controls over compliance, it was determined that the Organization had not met the prescribed reporting requirements. Effect: Submitting audited financial statements to USDA Rural Development is a stated compliance requirement; this would have the effect of program noncompliance. Cause: The Organization received a loan from USDA Rural Development and management was not aware of the compliance requirement. Recommendation: The Organization should transmit audited financial statements to USDA Rural Development.
Finding 2022-001
Finding 2022-001 Criteria: The Organization must establish a reserve bank account as stated in the program compliance requirements. Condition: The Organization did not open a reserve bank account as required by the program compliance requirements. Context: During substantive testing of cash and the performance of dual-purpose testing of compliance and controls over compliance, it was determined that the Organization had not met the requirement to establish a reserve bank account. Effect: Not establishing a reserve bank account is a stated compliance requirement; this would have the effect of program noncompliance. Cause: The Organization received a loan from United States Department of Agriculture (USDA) Rural Development (RD) and management was not aware of the compliance requirement. Recommendation: The Organization should establish a reserve bank account and make the required deposits.
Finding 2022-002
Criteria: The Organization must file Rural Development (RD) Forms 442-2 and 442-3 as stated in the program compliance requirements.Condition: The Organization has not filed RD Forms 442-2 and 442-3. Context: During the performance of dual-purpose testing of compliance and controls over compliance, it was determined that the Organization had not met the requirement to file RD Forms 442-2 and 442-3. Effect: The filing of RD Forms 442-2 and 442-3 with USDA Rural Development is a stated compliance requirement; this would have the effect of program noncompliance. Cause: The Organization received a loan from USDA Rural Development and management was not aware of the compliance requirement. Recommendation: The Organization should file RD Forms 442-2 and 442-3.
Finding 2022-003
Criteria: The Organization must submit annual audited financial statements to USDA Rural Development. Condition: The Organization did not submit audited financial statements to USDA Rural Development. Context: During the performance of dual-purpose testing of compliance and controls over compliance, it was determined that the Organization had not met the prescribed reporting requirements. Effect: Submitting audited financial statements to USDA Rural Development is a stated compliance requirement; this would have the effect of program noncompliance. Cause: The Organization received a loan from USDA Rural Development and management was not aware of the compliance requirement. Recommendation: The Organization should transmit audited financial statements to USDA Rural Development.