FAC Explorer

Audit 316869

FY End
2023-06-30
Total Expended
$1.89M
Findings
2
Programs
1
Organization: Arizona Foundation for Human Service Providers (AZ)
Year: 2023 Accepted: 2024-08-07
Auditor: Mayer Hoffman McCann PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
480670 2023-002 Material Weakness - M
1057112 2023-002 Material Weakness - M

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.89M Yes 1

Contacts

Name Title Type
F8FCVF5S39G2 Candy Espino Auditee
6022529363 David G. Miller, Jr. Auditor
No contacts on file

Notes to SEFA

Title: Foundation operations 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. Arizona Foundation for Human Service Providers has not elected to use the ten percent de minimus indirect cost rate allowable under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Arizona Foundation for Human Service Providers has not elected to use the ten percent de minimus indirect cost rate allowable under the Uniform Guidance. Arizona Foundation for Human Service Providers (the “Foundation”) is a non-profit 501(c)(3) organization serving as the educational arm of the Arizona Council of Human Service Providers (the “Council”). The Foundation provides support, education, and training opportunities to Council members, and administers grants. Membership in the Foundation is offered at no cost to members of the Council. The Foundation has evaluated subsequent events through August 1, 2024, which is the date the schedule of expenditures of federal awards were available to be issued.
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. Arizona Foundation for Human Service Providers has not elected to use the ten percent de minimus indirect cost rate allowable under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Arizona Foundation for Human Service Providers has not elected to use the ten percent de minimus indirect cost rate allowable under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule) includes the federal award activity of Arizona Foundation for Human Service Providers under a program of the federal government for the year ended June 30, 2023. 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 Arizona Foundation for Human Service Providers, it is not intended to and does not present the financial position, results of operations or cash flows of Arizona Foundation for Human Service Providers. The COVID-19 – Coronavirus State and Local Fiscal Recovery Funds (SLFRF) grant from the U.S. Department of Treasury has a project period of March 1, 2022 through September 30, 2024.

Finding Details

Finding 2023-002
Item: 2023-002 Assistance Listing Number: 21.027 Programs: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Federal Agency: U.S. Department of Treasury Pass-Through Agencies: State of Arizona, Office of the Governor Pass-Through Grantor Identifying Number: EL9HZNBAN1B9 Award Year: July 1, 2022 – June 30, 2023 Compliance Requirement: Subrecipient Monitoring Criteria: In accordance with 2 CFR sections 200.330, .331, and .501(h), pass-through entities must (a) identify the award and applicable requirements, (b) evaluate the subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring related to the subaward (2 CR section 200.332(b), (c) monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR section 200.332(d) through (f), and (d) ensure accountability for any for-profit subrecipients. Condition: In connection with our testing of Arizona Foundation for Human Service Providers (the Foundation) subrecipient monitoring, we noted that the Foundation did not timely or effectively monitor the activities of subrecipients post-payment to ensure that the subawards were used for authorized purposes and complied with the terms and conditions of the subaward. Questioned Costs: N/A Context: In a population of 58 subrecipients, we conducted a nonstatistical sample of 9 subrecipients to assess the Foundation’s compliance with subrecipient monitoring. In all instances, we noted the Foundation did not obtain and review monitoring reports in a timely fashion. For 2 of 9 subrecipients, we noted monitoring activities were not effective as it was determined that the subrecipients expended funds under the subaward on activities that were not part of their original approved action plan. However, we noted the activities reported were still allowable under the subaward but were not in accordance with the sub awardees originally communicated funding use plan. Effect: Subrecipients were not timely or effectively monitored post-payment to ensure that the subawards were used for authorized purposes and complied with the terms and conditions of the subaward. This is deemed to be a material weakness in internal control on compliance. Cause: The Foundation did not have sufficient controls in place to timely or effectively monitor subrecipients. Additionally, the Foundation did not have sufficient procedures for the ongoing post-payment review of subawards. Identification as a Repeat Finding: Not a repeat finding Recommendation: We recommend that the Foundation enhance their existing policies and procedures to ensure sufficient controls are in place to properly monitor subrecipients. This should include specific enhancements to the ongoing post-payment review of subawards and well as supervision and review controls to ensure the procedures are performed in a timely and thorough manner. Views of Responsible Officials: Management of the Foundation concurs in part with the finding. See Corrective Action Plan.
Finding 2023-002
Item: 2023-002 Assistance Listing Number: 21.027 Programs: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Federal Agency: U.S. Department of Treasury Pass-Through Agencies: State of Arizona, Office of the Governor Pass-Through Grantor Identifying Number: EL9HZNBAN1B9 Award Year: July 1, 2022 – June 30, 2023 Compliance Requirement: Subrecipient Monitoring Criteria: In accordance with 2 CFR sections 200.330, .331, and .501(h), pass-through entities must (a) identify the award and applicable requirements, (b) evaluate the subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring related to the subaward (2 CR section 200.332(b), (c) monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR section 200.332(d) through (f), and (d) ensure accountability for any for-profit subrecipients. Condition: In connection with our testing of Arizona Foundation for Human Service Providers (the Foundation) subrecipient monitoring, we noted that the Foundation did not timely or effectively monitor the activities of subrecipients post-payment to ensure that the subawards were used for authorized purposes and complied with the terms and conditions of the subaward. Questioned Costs: N/A Context: In a population of 58 subrecipients, we conducted a nonstatistical sample of 9 subrecipients to assess the Foundation’s compliance with subrecipient monitoring. In all instances, we noted the Foundation did not obtain and review monitoring reports in a timely fashion. For 2 of 9 subrecipients, we noted monitoring activities were not effective as it was determined that the subrecipients expended funds under the subaward on activities that were not part of their original approved action plan. However, we noted the activities reported were still allowable under the subaward but were not in accordance with the sub awardees originally communicated funding use plan. Effect: Subrecipients were not timely or effectively monitored post-payment to ensure that the subawards were used for authorized purposes and complied with the terms and conditions of the subaward. This is deemed to be a material weakness in internal control on compliance. Cause: The Foundation did not have sufficient controls in place to timely or effectively monitor subrecipients. Additionally, the Foundation did not have sufficient procedures for the ongoing post-payment review of subawards. Identification as a Repeat Finding: Not a repeat finding Recommendation: We recommend that the Foundation enhance their existing policies and procedures to ensure sufficient controls are in place to properly monitor subrecipients. This should include specific enhancements to the ongoing post-payment review of subawards and well as supervision and review controls to ensure the procedures are performed in a timely and thorough manner. Views of Responsible Officials: Management of the Foundation concurs in part with the finding. See Corrective Action Plan.