FAC Explorer

Audit 319505

FY End
2023-12-31
Total Expended
$1.42M
Findings
2
Programs
3
Organization: U.s. Dream Academy, Inc. (MD)
Year: 2023 Accepted: 2024-09-13
Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496747 2023-001 Significant Deficiency - AB
1073189 2023-001 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
16.726 Juvenile Mentoring Program $633,398 Yes 1
16.818 Children Exposed to Violence $410,093 - 0
84.425U Covid-19 Elementary and Secondary School Emergency Relief $112,560 - 0

Contacts

Name Title Type
ZDG8FAN8SBD8 Christine Moore Auditee
4107727143 Alyssa Hill Auditor
No contacts on file

Notes to SEFA

Title: Note 1: BASIS OF PRESENTATION Accounting Policies: Expenditures presented on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles as found in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Academy did not receive any federal noncash assistance for th year ended December 31, 2023. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the Federal award program expenditures of the Academy for the year ended December 31, 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the Academy’s financial statements.
Title: Note 3: RELATIONSHIP TO FINANCIAL REPORTS SUBMITTED TO GRANTOR AGENCIES Accounting Policies: Expenditures presented on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles as found in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Academy did not receive any federal noncash assistance for th year ended December 31, 2023. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. Amount reflected in the financial reports filed with grantor agencies for the programs may not agree because of accrual included in the next report filed with the agencies and different program year ends.
Title: Note 5: FEDERAL ASSISTANCE RECONCILIATION Accounting Policies: Expenditures presented on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles as found in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Academy did not receive any federal noncash assistance for th year ended December 31, 2023. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. Federal revenue reconciliation

Finding Details

Finding 2023-001
U.S. Department of Justice 16.726 Juvenile Mentoring Program Grant Period: 10/1/2020-9/30/2024 Contract Number: 2020-JU-FX-0009 Criteria: Under 2 CFR Section 200.303(a) a non-Federal entity is required to establish and maintain internal controls over compliance with Federal statutes, regulations, and the terms and conditions of the Federal grant. In addition, under 2 CFR Section 200.430 Compensation – personal services, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Budget estimates may be used for interim accounting purposes but budget estimates alone do not qualify as support for charges to Federal awards. The entity’s system of internal controls must include a process to review after-the-fact interim charges made to a Federal award to budget estimates and make any necessary adjustments such that the final amount charged to the Federal award is accurate, allowable and properly allocated. Condition: The Academy’s internal control processes do not include a comparison of actual time charged on the employee’s time slip to the budget allocation charged the grant to determine if the budget estimates reflect reasonable approximations of the activities actually performed. Effect: Without internal controls operating effectively, it is possible that the Academy could be at risk to be out of compliance with the applicable compliance requirements. Cause: Additional federal and other restricted grants resulted in employee’s time being allocated across additional funding sources. In addition, the Academy was working with the grantor on a budget adjustment. Questioned Costs: Known questioned costs: $5,573; likely questioned costs $29,683. Perspective: There is no observable evidence of the Academy’s review and reconciliation of time slips to budget estimates which affects both the allowable activities and allowable costs requirements. Repeat Finding: No Auditor’s Recommendation: We recommend the Academy establish policies and procedures to reconcile the percentage of hours charged on time slips to the budget estimates used to bill the Federal grantor. This should be done in conjunction with quarterly billings (or other determined regular interval), at fiscal year end, and at the end of the grant year (if different from the Academy’s fiscal year). Views of Responsible Officials: See Corrective Action Plan
Finding 2023-001
U.S. Department of Justice 16.726 Juvenile Mentoring Program Grant Period: 10/1/2020-9/30/2024 Contract Number: 2020-JU-FX-0009 Criteria: Under 2 CFR Section 200.303(a) a non-Federal entity is required to establish and maintain internal controls over compliance with Federal statutes, regulations, and the terms and conditions of the Federal grant. In addition, under 2 CFR Section 200.430 Compensation – personal services, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Budget estimates may be used for interim accounting purposes but budget estimates alone do not qualify as support for charges to Federal awards. The entity’s system of internal controls must include a process to review after-the-fact interim charges made to a Federal award to budget estimates and make any necessary adjustments such that the final amount charged to the Federal award is accurate, allowable and properly allocated. Condition: The Academy’s internal control processes do not include a comparison of actual time charged on the employee’s time slip to the budget allocation charged the grant to determine if the budget estimates reflect reasonable approximations of the activities actually performed. Effect: Without internal controls operating effectively, it is possible that the Academy could be at risk to be out of compliance with the applicable compliance requirements. Cause: Additional federal and other restricted grants resulted in employee’s time being allocated across additional funding sources. In addition, the Academy was working with the grantor on a budget adjustment. Questioned Costs: Known questioned costs: $5,573; likely questioned costs $29,683. Perspective: There is no observable evidence of the Academy’s review and reconciliation of time slips to budget estimates which affects both the allowable activities and allowable costs requirements. Repeat Finding: No Auditor’s Recommendation: We recommend the Academy establish policies and procedures to reconcile the percentage of hours charged on time slips to the budget estimates used to bill the Federal grantor. This should be done in conjunction with quarterly billings (or other determined regular interval), at fiscal year end, and at the end of the grant year (if different from the Academy’s fiscal year). Views of Responsible Officials: See Corrective Action Plan