FAC Explorer

Audit 315354

FY End
2022-12-31
Total Expended
$755,565
Findings
4
Programs
3
Organization: Meals on Wheels Atlanta, Inc. and Affiliate (GA)
Year: 2022 Accepted: 2024-07-17
Auditor: Mauldin & Jenkins LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
478697 2022-001 Material Weakness - ABC
478698 2022-002 Material Weakness - ABC
1055139 2022-001 Material Weakness - ABC
1055140 2022-002 Material Weakness - ABC

Programs

ALN Program Spent Major Findings
93.493 Senior Services Capacity Expansion in Atlanta, Ga $589,837 Yes 2
14.218 Community Development Block Grants/entitlement Grants $61,728 - 0
97.024 Emergency Food and Shelter National Board Program $54,000 - 0

Contacts

Name Title Type
L3V1GKTQ6DP5 Radames Williams Auditee
4043513889 Aleisa Howell 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 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: Meals on Wheels Atlanta, Inc. and Affiliate has elected not to use the 10% 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 Meals on Wheels Atlanta, Inc. and Affiliate under programs of the federal government for the year ended December 31, 2022. The information in the 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
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 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: Meals on Wheels Atlanta, Inc. and Affiliate has elected not to use the 10% 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 certain types of expenditures are not allowable or are limited as to reimbursement.
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 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: Meals on Wheels Atlanta, Inc. and Affiliate has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Meals on Wheels Atlanta, Inc. and Affiliate has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-001
Condition: Generally accepted accounting principles require that deferred revenue be recorded for all amounts of grant funds received that have not yet been earned. Context: The improper recording of deferred revenues were identified during our audit work surrounding the revenue recognition of the major program. Effect: The adjustment to deferred revenues had the effect of increasing deferred revenues by $236,250 and decreasing grant revenue by $236,250. Recommendation: The Organization should review all grant agreements related to grant payments received and based upon the terms of the agreement determine if deferral is appropriate. Managements Response: We agree with finding, and will follow prescribed recommendation.
Finding 2022-002
Condition: The grant is a reimbursement type grant, as the grant agreement does not specifically indicate that it is an advance type grant. As such, all expenses should be recognized before applying for funding, or expended within a “reasonable” period subsequent to receipt of funds. Context: The Organization applied for grant drawdowns based on projections and expended funds greater than 30 days beyond receipt, resulting in the expenditure occurring in a different fiscal year than when the funds were received. Effect: The receipt of funds before expenditure was $708,288. Recommendation: The Organization should review internal policies related to drawdowns to ensure that drawdowns occur in compliance with Uniform Guidance. Managements Response: We agree with finding, and will follow prescribed recommendation.
Finding 2022-001
Condition: Generally accepted accounting principles require that deferred revenue be recorded for all amounts of grant funds received that have not yet been earned. Context: The improper recording of deferred revenues were identified during our audit work surrounding the revenue recognition of the major program. Effect: The adjustment to deferred revenues had the effect of increasing deferred revenues by $236,250 and decreasing grant revenue by $236,250. Recommendation: The Organization should review all grant agreements related to grant payments received and based upon the terms of the agreement determine if deferral is appropriate. Managements Response: We agree with finding, and will follow prescribed recommendation.
Finding 2022-002
Condition: The grant is a reimbursement type grant, as the grant agreement does not specifically indicate that it is an advance type grant. As such, all expenses should be recognized before applying for funding, or expended within a “reasonable” period subsequent to receipt of funds. Context: The Organization applied for grant drawdowns based on projections and expended funds greater than 30 days beyond receipt, resulting in the expenditure occurring in a different fiscal year than when the funds were received. Effect: The receipt of funds before expenditure was $708,288. Recommendation: The Organization should review internal policies related to drawdowns to ensure that drawdowns occur in compliance with Uniform Guidance. Managements Response: We agree with finding, and will follow prescribed recommendation.