Audit 321796

FY End

2023-12-31

Total Expended

$6.81M

Findings

4

Programs

6

Organization: Black Belt Community Foundation (AL)

Year: 2023 Accepted: 2024-09-27

Auditor: MacHen McChesney LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
499012	2023-001	-	Yes	L
499013	2023-002	Significant Deficiency	-	I
1075454	2023-001	-	Yes	L
1075455	2023-002	Significant Deficiency	-	I

ALN	Program	Spent	Major	Findings
93.600	Head Start	$3.72M	Yes	1
93.391	Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises	$2.35M	Yes	1
93.575	Child Care and Development Block Grant	$336,750	-	0
10.558	Child and Adult Care Food Program	$268,116	-	0
45.025	Promotion of the Arts Partnership Agreements	$120,000	-	0
17.259	Wioa Youth Activities	$13,530	-	0

Contacts

Name	Title	Type
DWFAK8PWH9B1	Michelle Kine	Auditee
3348741126	Brian Harris	Auditor
No contacts on file

Notes to SEFA

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 allowed or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Black Belt Community Foundation has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal awards activity of the Black Belt Community Foundation under programs of the federal government 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 (the "Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of Black Belt Community Foundation, it is not intended to and does not present the financial position, changes in net position, or cash flows of Black Belt Community Foundation.

Title: Summary of Significant Accounting Policies 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 allowed or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Black Belt Community Foundation has elected to use the 10% de minimis indirect cost rate as 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 certain types of expenditures are not allowed or are limited as to reimbursement.

Title: Indirect Cost Rate 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 allowed or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Black Belt Community Foundation has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Black Belt Community Foundation has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: Subrecipients 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 allowed or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Black Belt Community Foundation has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. During the year ended December 31, 2023, Black Belt Community Foundation did not pass through any federal awards to subrecipients.

Finding Details

Finding 2023-001

Condition: SF-425 - Federal Financial Report was not submitted by the due date. Criteria: The Foundation was required to submit the SF-425 semi-annual and annual reports for Grant 04CH01217001 by July 30, 2023 and October 30, 2023, respectively. The semi-annual report was submitted 2 days after the due date and the annual report was submitted 6 weeks after the due date. Cause: The Foundation did not have procedures in place to ensure the reports were submitted timely. Effect: The Office of Head Start received the SF-425 reports beyond the due date. Recommendation: Management should implement procedures to ensure the SF-425 reports are prepared, reviewed, and submitted by the due date. Views of Responsible Officials and Planned Corrective Actions: The Foundation agrees with the finding and procedures have been implemented.

Finding 2023-002

Condition: The Foundation’s controls over compliance were not sufficient to prevent the Foundation from entering into contracts without obtaining certification from the contractor that it was not debarred or suspended. Criteria: In accordance with 2 CFR Part 180, non-federal entities are prohibited from contracting with or making subawards to parties that are suspended or debarred. To comply with this requirement, the Foundation has developed written policies to require that all contracts include a clause certifying that the contractor is not debarred or suspended from participating in contracts involving federal assistance. Cause: The Foundation did not follow its written procedures for two covered transactions. Effect: The Foundation could have unknowingly entered into contracts with debarred or suspended parties. Recommendation: Management should ensure its written policies and procedures regarding debarred and suspended parties are followed before executing contracts to be reimbursed by federal assistance. Views of Responsible Officials and Planned Corrective Actions: The Foundation agrees with the finding and procedures have been implemented.

Finding 2023-001

Condition: SF-425 - Federal Financial Report was not submitted by the due date. Criteria: The Foundation was required to submit the SF-425 semi-annual and annual reports for Grant 04CH01217001 by July 30, 2023 and October 30, 2023, respectively. The semi-annual report was submitted 2 days after the due date and the annual report was submitted 6 weeks after the due date. Cause: The Foundation did not have procedures in place to ensure the reports were submitted timely. Effect: The Office of Head Start received the SF-425 reports beyond the due date. Recommendation: Management should implement procedures to ensure the SF-425 reports are prepared, reviewed, and submitted by the due date. Views of Responsible Officials and Planned Corrective Actions: The Foundation agrees with the finding and procedures have been implemented.

Finding 2023-002

Condition: The Foundation’s controls over compliance were not sufficient to prevent the Foundation from entering into contracts without obtaining certification from the contractor that it was not debarred or suspended. Criteria: In accordance with 2 CFR Part 180, non-federal entities are prohibited from contracting with or making subawards to parties that are suspended or debarred. To comply with this requirement, the Foundation has developed written policies to require that all contracts include a clause certifying that the contractor is not debarred or suspended from participating in contracts involving federal assistance. Cause: The Foundation did not follow its written procedures for two covered transactions. Effect: The Foundation could have unknowingly entered into contracts with debarred or suspended parties. Recommendation: Management should ensure its written policies and procedures regarding debarred and suspended parties are followed before executing contracts to be reimbursed by federal assistance. Views of Responsible Officials and Planned Corrective Actions: The Foundation agrees with the finding and procedures have been implemented.