FAC Explorer

Audit 321555

FY End
2023-12-31
Total Expended
$1.96M
Findings
4
Programs
4
Organization: Beacon, Inc. (IN)
Year: 2023 Accepted: 2024-09-27
Auditor: Blue and CO LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498817 2023-001 Material Weakness Yes BL
498818 2023-001 Material Weakness Yes BL
1075259 2023-001 Material Weakness Yes BL
1075260 2023-001 Material Weakness Yes BL

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $1.35M Yes 1
14.231 Emergency Solutions Grant Program $480,202 - 0
14.218 Community Development Block Grants/entitlement Grants $112,179 - 0
93.569 Community Services Block Grant $2,306 - 0

Contacts

Name Title Type
NYQGS4MRE6Z6 Ian Forrest Gilmore Auditee
8123345734 Cecilia Spencer Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the SEFA are reported on the modified cash basis of accounting; consequently, certain expenses and purchases of assets are recognized when cash is disbursed rather than when the obligation is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not available or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable; however, no funds were passed through to subrecipients in 2023. The organization has not adopted a de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: The Organization has not adopted a de minimis cost rate. The accompanying schedule of expenditures of federal awards – modified cash basis (“SEFA”) includes the federal grant activity of the organization under programs of the federal government as of and for the year ended December 31, 2023. The information in the SEFA is presented in accordance with the requirements of Title 2 of the United States Code of Federal Regulations Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of Beacon, it is not intended to and does not present the financial position or changes in net assets of the organization.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the SEFA are reported on the modified cash basis of accounting; consequently, certain expenses and purchases of assets are recognized when cash is disbursed rather than when the obligation is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not available or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable; however, no funds were passed through to subrecipients in 2023. The organization has not adopted a de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: The Organization has not adopted a de minimis cost rate. Expenditures reported on the SEFA are reported on the modified cash basis of accounting; consequently, certain expenses and purchases of assets are recognized when cash is disbursed rather than when the obligation is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not available or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable; however, no funds were passed through to subrecipients in 2023. The organization has not adopted a de minimis indirect cost rate.

Finding Details

Finding 2023-001
2023-001: Preparation of Financial Statements and Financial Review (previously reported as 2022-001) ConditionBeacon, Inc. does not have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with accounting principles generally accepted in the United States of America (GAAP). Criteria Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Cause Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Adequate efforts have not been devoted to Beacon, Inc.’s accounting processes because management believes that the cost of doing so outweighs the benefits. Management feels that this matter is addressed in conjunction with the annual independent audit. Effect Beacon, Inc. engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, we must inform those charged with governance that this must be considered a material weakness in internal control over financial reporting since the year-end external financial statement preparation cannot be performed in-house. Recommendation Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make incremental improvements as they are practical to do so. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. The current economics of the organization do not allow for us to correct this weakness. We believe our current accounting capacity is sufficient for routine day to day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2023-001
2023-001: Preparation of Financial Statements and Financial Review (previously reported as 2022-001) ConditionBeacon, Inc. does not have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with accounting principles generally accepted in the United States of America (GAAP). Criteria Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Cause Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Adequate efforts have not been devoted to Beacon, Inc.’s accounting processes because management believes that the cost of doing so outweighs the benefits. Management feels that this matter is addressed in conjunction with the annual independent audit. Effect Beacon, Inc. engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, we must inform those charged with governance that this must be considered a material weakness in internal control over financial reporting since the year-end external financial statement preparation cannot be performed in-house. Recommendation Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make incremental improvements as they are practical to do so. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. The current economics of the organization do not allow for us to correct this weakness. We believe our current accounting capacity is sufficient for routine day to day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2023-001
2023-001: Preparation of Financial Statements and Financial Review (previously reported as 2022-001) ConditionBeacon, Inc. does not have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with accounting principles generally accepted in the United States of America (GAAP). Criteria Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Cause Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Adequate efforts have not been devoted to Beacon, Inc.’s accounting processes because management believes that the cost of doing so outweighs the benefits. Management feels that this matter is addressed in conjunction with the annual independent audit. Effect Beacon, Inc. engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, we must inform those charged with governance that this must be considered a material weakness in internal control over financial reporting since the year-end external financial statement preparation cannot be performed in-house. Recommendation Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make incremental improvements as they are practical to do so. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. The current economics of the organization do not allow for us to correct this weakness. We believe our current accounting capacity is sufficient for routine day to day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2023-001
2023-001: Preparation of Financial Statements and Financial Review (previously reported as 2022-001) ConditionBeacon, Inc. does not have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with accounting principles generally accepted in the United States of America (GAAP). Criteria Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Cause Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Adequate efforts have not been devoted to Beacon, Inc.’s accounting processes because management believes that the cost of doing so outweighs the benefits. Management feels that this matter is addressed in conjunction with the annual independent audit. Effect Beacon, Inc. engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, we must inform those charged with governance that this must be considered a material weakness in internal control over financial reporting since the year-end external financial statement preparation cannot be performed in-house. Recommendation Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make incremental improvements as they are practical to do so. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. The current economics of the organization do not allow for us to correct this weakness. We believe our current accounting capacity is sufficient for routine day to day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.