FAC Explorer

Audit 319803

FY End
2023-09-30
Total Expended
$847,839
Findings
8
Programs
2
Organization: Cherokee-Etowah-Dekalb Fellowship House, Inc. (AL)
Year: 2023 Accepted: 2024-09-17
Auditor: Gerald G Pentecost JR CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
497221 2023-001 Material Weakness - L
497222 2023-002 Material Weakness - L
497223 2023-001 Material Weakness - L
497224 2023-002 Material Weakness - L
1073663 2023-001 Material Weakness - L
1073664 2023-002 Material Weakness - L
1073665 2023-001 Material Weakness - L
1073666 2023-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
93.788 Opioid Str $688,473 - 2
93.959 Block Grants for Prevention and Treatment of Substance Abuse $159,366 - 2

Contacts

Name Title Type
MSK7Z1F6JDK3 Sam Long Auditee
2564133470 Gerald Pentecost Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Cherokee-Etowah-Dekalb Fellowship House, Inc. under programs of the federal government for the year ended September 30, 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 Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Cherokee-Etowah-Dekalb Fellowship House, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cherokee-Etowah-Dekalb Fellowship House, Inc.. 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 cerain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Cherokee-Etowah-Dekalb Fellowship House, Inc. has elected to use the 10-percent 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 Cherokee-Etowah-Dekalb Fellowship House, Inc. under programs of the federal government for the year ended September 30, 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 Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Cherokee-Etowah-Dekalb Fellowship House, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cherokee-Etowah-Dekalb Fellowship House, Inc.
Title: Note 2 Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Cherokee-Etowah-Dekalb Fellowship House, Inc. under programs of the federal government for the year ended September 30, 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 Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Cherokee-Etowah-Dekalb Fellowship House, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cherokee-Etowah-Dekalb Fellowship House, Inc.. 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 cerain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Cherokee-Etowah-Dekalb Fellowship House, Inc. has elected to use the 10-percent 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 cerain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 Indirect Cost Rate Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Cherokee-Etowah-Dekalb Fellowship House, Inc. under programs of the federal government for the year ended September 30, 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 Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Cherokee-Etowah-Dekalb Fellowship House, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cherokee-Etowah-Dekalb Fellowship House, Inc.. 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 cerain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Cherokee-Etowah-Dekalb Fellowship House, Inc. has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Cherokee-Etowah-Dekalb Fellowship House, Inc. has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Segregation of Duties Criteria: A basic internal control over financial reporting is the segregation of duties of transaction processing, record keeping, reconciliation, and custody of assets. Condition: This is an inherent limitation for entities that are small in size and thus, have limited staff to perform designated functions. Context/Cause: During our audit, we noted that duties were not segregated in a number of areas where small adjustments to the policies of the Organization could help to further facilitate this important control. These areas include cash disbursements, bank reconciliation, customer billing, cash receipts and collections, and approval of journal entries. Effects: Lack of segregation of duties and a corresponding lack of monitoring and oversight increases exposure to misappropriation of assets and errors in financial reporting. Recommendation; We recommend that management continue to evaluate the procedures and policies used in the accounting area and continue to segregate duties where possible. Additional oversight, monitoring, and approval will be necessary in areas where duties cannot be segregated at an optimal level due to limitations in staff size. Auditee’s Response; Management has issued written policies and required training of all employees that handle financial transactions and has continually evaluated processes to find ways to segregate duties where possible. Management and the board of directors continue to oversee operations closely requiring approvals for all transactions.
Finding 2023-002
Material Adjustments Criteria: Management is responsible for reconciling the accounts during the year and at year end in order to generate financial statements that are in accordance with Generally Accepted Accounting Principles. Condition: Insufficient controls over financial reporting resulted in material adjustments being required to prevent the Organizations financial statements from being materially misstated. Context/Cause: The Organization relied on auditors to propose entries after audit procedures and had not recorded entries needed at the time of the audit. Effects: Lack of internal controls over balance sheet account reconciliations and adjustments could result in undetected errors and irregularities and misstated interim financial reports. Recommendation: We recommend that management maintain reconciliations on a monthly basis to keep balance sheet accounts reconciled and correct and to document which accounting procedures are needed and when they should be performed on a recurring basis to detect material adjustments that are required. Auditee’s Response: The Organization will incorporate financial reporting internal controls to detect material adjustments, prevent materially misstated financial statements,and increase the accuracy of interim financial reports used by management.
Finding 2023-001
Segregation of Duties Criteria: A basic internal control over financial reporting is the segregation of duties of transaction processing, record keeping, reconciliation, and custody of assets. Condition: This is an inherent limitation for entities that are small in size and thus, have limited staff to perform designated functions. Context/Cause: During our audit, we noted that duties were not segregated in a number of areas where small adjustments to the policies of the Organization could help to further facilitate this important control. These areas include cash disbursements, bank reconciliation, customer billing, cash receipts and collections, and approval of journal entries. Effects: Lack of segregation of duties and a corresponding lack of monitoring and oversight increases exposure to misappropriation of assets and errors in financial reporting. Recommendation; We recommend that management continue to evaluate the procedures and policies used in the accounting area and continue to segregate duties where possible. Additional oversight, monitoring, and approval will be necessary in areas where duties cannot be segregated at an optimal level due to limitations in staff size. Auditee’s Response; Management has issued written policies and required training of all employees that handle financial transactions and has continually evaluated processes to find ways to segregate duties where possible. Management and the board of directors continue to oversee operations closely requiring approvals for all transactions.
Finding 2023-002
Material Adjustments Criteria: Management is responsible for reconciling the accounts during the year and at year end in order to generate financial statements that are in accordance with Generally Accepted Accounting Principles. Condition: Insufficient controls over financial reporting resulted in material adjustments being required to prevent the Organizations financial statements from being materially misstated. Context/Cause: The Organization relied on auditors to propose entries after audit procedures and had not recorded entries needed at the time of the audit. Effects: Lack of internal controls over balance sheet account reconciliations and adjustments could result in undetected errors and irregularities and misstated interim financial reports. Recommendation: We recommend that management maintain reconciliations on a monthly basis to keep balance sheet accounts reconciled and correct and to document which accounting procedures are needed and when they should be performed on a recurring basis to detect material adjustments that are required. Auditee’s Response: The Organization will incorporate financial reporting internal controls to detect material adjustments, prevent materially misstated financial statements,and increase the accuracy of interim financial reports used by management.
Finding 2023-001
Segregation of Duties Criteria: A basic internal control over financial reporting is the segregation of duties of transaction processing, record keeping, reconciliation, and custody of assets. Condition: This is an inherent limitation for entities that are small in size and thus, have limited staff to perform designated functions. Context/Cause: During our audit, we noted that duties were not segregated in a number of areas where small adjustments to the policies of the Organization could help to further facilitate this important control. These areas include cash disbursements, bank reconciliation, customer billing, cash receipts and collections, and approval of journal entries. Effects: Lack of segregation of duties and a corresponding lack of monitoring and oversight increases exposure to misappropriation of assets and errors in financial reporting. Recommendation; We recommend that management continue to evaluate the procedures and policies used in the accounting area and continue to segregate duties where possible. Additional oversight, monitoring, and approval will be necessary in areas where duties cannot be segregated at an optimal level due to limitations in staff size. Auditee’s Response; Management has issued written policies and required training of all employees that handle financial transactions and has continually evaluated processes to find ways to segregate duties where possible. Management and the board of directors continue to oversee operations closely requiring approvals for all transactions.
Finding 2023-002
Material Adjustments Criteria: Management is responsible for reconciling the accounts during the year and at year end in order to generate financial statements that are in accordance with Generally Accepted Accounting Principles. Condition: Insufficient controls over financial reporting resulted in material adjustments being required to prevent the Organizations financial statements from being materially misstated. Context/Cause: The Organization relied on auditors to propose entries after audit procedures and had not recorded entries needed at the time of the audit. Effects: Lack of internal controls over balance sheet account reconciliations and adjustments could result in undetected errors and irregularities and misstated interim financial reports. Recommendation: We recommend that management maintain reconciliations on a monthly basis to keep balance sheet accounts reconciled and correct and to document which accounting procedures are needed and when they should be performed on a recurring basis to detect material adjustments that are required. Auditee’s Response: The Organization will incorporate financial reporting internal controls to detect material adjustments, prevent materially misstated financial statements,and increase the accuracy of interim financial reports used by management.
Finding 2023-001
Segregation of Duties Criteria: A basic internal control over financial reporting is the segregation of duties of transaction processing, record keeping, reconciliation, and custody of assets. Condition: This is an inherent limitation for entities that are small in size and thus, have limited staff to perform designated functions. Context/Cause: During our audit, we noted that duties were not segregated in a number of areas where small adjustments to the policies of the Organization could help to further facilitate this important control. These areas include cash disbursements, bank reconciliation, customer billing, cash receipts and collections, and approval of journal entries. Effects: Lack of segregation of duties and a corresponding lack of monitoring and oversight increases exposure to misappropriation of assets and errors in financial reporting. Recommendation; We recommend that management continue to evaluate the procedures and policies used in the accounting area and continue to segregate duties where possible. Additional oversight, monitoring, and approval will be necessary in areas where duties cannot be segregated at an optimal level due to limitations in staff size. Auditee’s Response; Management has issued written policies and required training of all employees that handle financial transactions and has continually evaluated processes to find ways to segregate duties where possible. Management and the board of directors continue to oversee operations closely requiring approvals for all transactions.
Finding 2023-002
Material Adjustments Criteria: Management is responsible for reconciling the accounts during the year and at year end in order to generate financial statements that are in accordance with Generally Accepted Accounting Principles. Condition: Insufficient controls over financial reporting resulted in material adjustments being required to prevent the Organizations financial statements from being materially misstated. Context/Cause: The Organization relied on auditors to propose entries after audit procedures and had not recorded entries needed at the time of the audit. Effects: Lack of internal controls over balance sheet account reconciliations and adjustments could result in undetected errors and irregularities and misstated interim financial reports. Recommendation: We recommend that management maintain reconciliations on a monthly basis to keep balance sheet accounts reconciled and correct and to document which accounting procedures are needed and when they should be performed on a recurring basis to detect material adjustments that are required. Auditee’s Response: The Organization will incorporate financial reporting internal controls to detect material adjustments, prevent materially misstated financial statements,and increase the accuracy of interim financial reports used by management.