Audit 319380

FY End
2023-12-31
Total Expended
$801,827
Findings
4
Programs
7
Year: 2023 Accepted: 2024-09-11
Auditor: Gilbert Cpa's

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
496457 2023-003 Material Weakness - E
496458 2023-004 - - L
1072899 2023-003 Material Weakness - E
1072900 2023-004 - - L

Contacts

Name Title Type
TGDEPJ3KE9S5 Jose Dominguez Auditee
9164531482 Matthew Krehe Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards of Saint John’s Program for Real Change is presented on 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). De Minimis Rate Used: N Rate Explanation: Saint John’s Program for Real Change did not elect to use the 10% de minimis indirect cost rate as they received indirect costs at varying rates as determined by the granting agencies.

Finding Details

2023-003 – ELIGIBILITY Federal Program: Child and Adult Care Food Program Federal Agency: U.S. Department of Agriculture Assistance Listing Number: 10.558 Grant Award Number and Year: 1/1/2023 – 12/31/2023. No award number available. Criteria: According to 7 CFR § 226.2, any individual residing in an emergency shelter may receive meals under the CACFP if he/she is a child (defined as persons aged 18 and under), or if he/she is an adult with a mental or physical handicap. In addition to this requirement, the emergency shelter must serve a majority of its CACFP claimed meals to children. On April 9, 2021, the USDA issued memo CACFP 08-2021 which, due to the COVID-19 Pandemic, allowed emergency shelters to claim 19–24-year-olds as children (thus waiving the disability requirement for young adults under 25). On February 15, 2023, the USDA issued memo CACFP 03-2023 announcing that the waiver under CACFP 08-2021 was expected to end on May 11, 2023. As such, subsequent to May 11, 2023, Saint John's should have ceased counting 19–24-year-olds as children in its CACFP meal counts. Condition: We noted during eligibility testing over the Child and Adult Care Food Program that Saint John's was counting adults age 19-24 as children in its CACFP meal counts for the full 2023 year. Questioned Costs: No questioned costs. Cause: It appears that personnel at Saint John's responsible for overseeing the CACFP program were not aware that the COVID-19 waiver was ending or were aware but did not relay that information to staff members performing meal counts. Effect: The possible effect is that Saint John's claimed more meals than were allowable for the period of 2023 after May 11th. Based on the client's records, we were not able to definitively quantify the effect on meals reported. Recommendation: We recommend that Saint John's assess its policies and procedures related to the CACFP program. This should include assessing its procedures for monitoring changes in the program requirements and communicating those changes with relevant staff. Additionally, this could include assessing its procedures around updating CACFP meal count sheets periodically and checking for individuals who age-out, or otherwise change status, and updating count sheets accordingly. Organization’s Corrective Action Plan: Refer to Organization’s Corrective Action Plan below.
2023-004 – REPORTING Federal Program: Block Grants for Community Mental Health Services Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.958 Grant Award Number and Year: 7/1/2022 – 6/30/2023 and 7/1/2023 – 6/30/2024, 7202100-23-082 and 7202100-24-082 Criteria: §200.334 of the Uniform Guidance states that "Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal awards must be retained for a period of three years from the date of submission of the final expenditure report." Condition: We noted during reporting testing of the Block Grant for Community Mental Health Services program that Saint John’s could not locate supporting documents for the 2 data elements selected for testing from related reports. These were data elements related to the results of programming, rather than financial data. We were able to verbally confirm the information with relevant personnel, but no physical or electronic supporting records were provided. Questioned Costs: No questioned costs. Cause: Saint John's does not appear to have a system in place that requires personnel to retain and organize documents and records collected to prepare performance reports. Effect: There is a risk that if the pass-through entity or Federal Agency were to request access to supporting records, Saint John's would not be able to produce the requested documents, which may jeopardize continued funding from those sources. Recommendation: We recommend that the Saint John’s develop policies that require staff to compile and retain records that support data communicated to granting agencies in performance reports, and retain them in accordance with Uniform Guidance record retention guidelines. Organization’s Corrective Action Plan: Refer to Organization’s Corrective Action Plan below.
2023-003 – ELIGIBILITY Federal Program: Child and Adult Care Food Program Federal Agency: U.S. Department of Agriculture Assistance Listing Number: 10.558 Grant Award Number and Year: 1/1/2023 – 12/31/2023. No award number available. Criteria: According to 7 CFR § 226.2, any individual residing in an emergency shelter may receive meals under the CACFP if he/she is a child (defined as persons aged 18 and under), or if he/she is an adult with a mental or physical handicap. In addition to this requirement, the emergency shelter must serve a majority of its CACFP claimed meals to children. On April 9, 2021, the USDA issued memo CACFP 08-2021 which, due to the COVID-19 Pandemic, allowed emergency shelters to claim 19–24-year-olds as children (thus waiving the disability requirement for young adults under 25). On February 15, 2023, the USDA issued memo CACFP 03-2023 announcing that the waiver under CACFP 08-2021 was expected to end on May 11, 2023. As such, subsequent to May 11, 2023, Saint John's should have ceased counting 19–24-year-olds as children in its CACFP meal counts. Condition: We noted during eligibility testing over the Child and Adult Care Food Program that Saint John's was counting adults age 19-24 as children in its CACFP meal counts for the full 2023 year. Questioned Costs: No questioned costs. Cause: It appears that personnel at Saint John's responsible for overseeing the CACFP program were not aware that the COVID-19 waiver was ending or were aware but did not relay that information to staff members performing meal counts. Effect: The possible effect is that Saint John's claimed more meals than were allowable for the period of 2023 after May 11th. Based on the client's records, we were not able to definitively quantify the effect on meals reported. Recommendation: We recommend that Saint John's assess its policies and procedures related to the CACFP program. This should include assessing its procedures for monitoring changes in the program requirements and communicating those changes with relevant staff. Additionally, this could include assessing its procedures around updating CACFP meal count sheets periodically and checking for individuals who age-out, or otherwise change status, and updating count sheets accordingly. Organization’s Corrective Action Plan: Refer to Organization’s Corrective Action Plan below.
2023-004 – REPORTING Federal Program: Block Grants for Community Mental Health Services Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.958 Grant Award Number and Year: 7/1/2022 – 6/30/2023 and 7/1/2023 – 6/30/2024, 7202100-23-082 and 7202100-24-082 Criteria: §200.334 of the Uniform Guidance states that "Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal awards must be retained for a period of three years from the date of submission of the final expenditure report." Condition: We noted during reporting testing of the Block Grant for Community Mental Health Services program that Saint John’s could not locate supporting documents for the 2 data elements selected for testing from related reports. These were data elements related to the results of programming, rather than financial data. We were able to verbally confirm the information with relevant personnel, but no physical or electronic supporting records were provided. Questioned Costs: No questioned costs. Cause: Saint John's does not appear to have a system in place that requires personnel to retain and organize documents and records collected to prepare performance reports. Effect: There is a risk that if the pass-through entity or Federal Agency were to request access to supporting records, Saint John's would not be able to produce the requested documents, which may jeopardize continued funding from those sources. Recommendation: We recommend that the Saint John’s develop policies that require staff to compile and retain records that support data communicated to granting agencies in performance reports, and retain them in accordance with Uniform Guidance record retention guidelines. Organization’s Corrective Action Plan: Refer to Organization’s Corrective Action Plan below.