Audit 322026

FY End
2023-12-31
Total Expended
$21.06M
Findings
2
Programs
20
Organization: Samaritas and Subsidiaries (MI)
Year: 2023 Accepted: 2024-09-27
Auditor: Clark Nuber P S

Organization Exclusion Status:

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Contacts

Name Title Type
L3CNHTLEFS44 Cynthia Sikina Auditee
3133082768 Joseph Purvis Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement, except for expenditures related to ALN 93.498, Provider Relief Fund (PRF). PRF does not apply the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, but rather applies the U.S. Department of the Treasury’s guidance and/or the U.S. Department of Health and Human Services’ guidance and frequently asked questions outlined in the 2020 Compliance Supplement Addendum. The pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. The Organization has negotiated an indirect cost rate, as applicable, with the respective federal or pass-through agency providing the award. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Samaritas and Subsidiaries (the Organization) 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement, except for expenditures related to ALN 93.498, Provider Relief Fund (PRF). PRF does not apply the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, but rather applies the U.S. Department of the Treasury’s guidance and/or the U.S. Department of Health and Human Services’ guidance and frequently asked questions outlined in the 2020 Compliance Supplement Addendum. The pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. The Organization has negotiated an indirect cost rate, as applicable, with the respective federal or pass-through agency providing the award. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement, except for expenditures related to ALN 93.498, Provider Relief Fund (PRF). PRF does not apply the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, but rather applies the U.S. Department of the Treasury’s guidance and/or the U.S. Department of Health and Human Services’ guidance and frequently asked questions outlined in the 2020 Compliance Supplement Addendum. The pass-through entity identifying numbers are presented where available.
Title: Note 3 - Indirect Cost Rate Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement, except for expenditures related to ALN 93.498, Provider Relief Fund (PRF). PRF does not apply the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, but rather applies the U.S. Department of the Treasury’s guidance and/or the U.S. Department of Health and Human Services’ guidance and frequently asked questions outlined in the 2020 Compliance Supplement Addendum. The pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. The Organization has negotiated an indirect cost rate, as applicable, with the respective federal or pass-through agency providing the award. The Organization has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. The Organization has negotiated an indirect cost rate, as applicable, with the respective federal or pass-through agency providing the award.
Title: Note 4 - Noncash Assistance Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement, except for expenditures related to ALN 93.498, Provider Relief Fund (PRF). PRF does not apply the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, but rather applies the U.S. Department of the Treasury’s guidance and/or the U.S. Department of Health and Human Services’ guidance and frequently asked questions outlined in the 2020 Compliance Supplement Addendum. The pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. The Organization has negotiated an indirect cost rate, as applicable, with the respective federal or pass-through agency providing the award. The value of the noncash assistance received was determined in accordance with the provisions of the Uniform Guidance. The amounts reported on the schedule of expenditures of federal awards under ALN 10.569 are noncash assistance in the form of food commodities.

Finding Details

Finding 2023-001 Significant deficiency in internal controls over compliance and instance of noncompliance related to cash management. Federal Agency: United States Department of Health and Human Services Program Titles: Unaccompanied Children Program Assistance Listing Number: 93.676 Pass-Through Entity: Direct award Award Numbers: 90ZU0555-01-01 Award Periods: April 1, 2023 through March 31, 2024 Criteria Compliance requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (the Uniform Guidance) , Subpart D ‐ Post Federal Award Requirements, Section 200.305 Federal Payment, require that a non‐Federal entity must use a payment method that minimizes the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. When a non-federal entity must be paid in advance, the non-Federal entity must limit cash advance to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. Condition/Context During the year ended December 31, 2023, out of a sample of five cash draws, one selection represented a cash draw in excess of the immediate cash needs of the Organization. The Organization originally calculated the cash draw based upon the number of participants served in the program instead of the amount of allowable costs incurred for the program. Management of the Organization identified the overdraw and refunded $1,027,988 to the grantor within a month of the initial draw, which represents the amount drawn in excess of expenditures incurred. Cause The Organization did not have internal controls in place to ensure that the cash drawn was limited to the minimum amount needed for immediate cash needs of the program. Effect The Organization withdrew $1,027,988 in excess of immediate cash needs for the program and refunded the balance to the grantor after the error was identified within a month of the excess draw. Questioned Costs Not applicable. Repeat Finding Not a repeat finding. Recommendation We recommend the Organization implement internal controls to ensure that cash draws represent the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2023-001 Significant deficiency in internal controls over compliance and instance of noncompliance related to cash management. Federal Agency: United States Department of Health and Human Services Program Titles: Unaccompanied Children Program Assistance Listing Number: 93.676 Pass-Through Entity: Direct award Award Numbers: 90ZU0555-01-01 Award Periods: April 1, 2023 through March 31, 2024 Criteria Compliance requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (the Uniform Guidance) , Subpart D ‐ Post Federal Award Requirements, Section 200.305 Federal Payment, require that a non‐Federal entity must use a payment method that minimizes the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. When a non-federal entity must be paid in advance, the non-Federal entity must limit cash advance to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. Condition/Context During the year ended December 31, 2023, out of a sample of five cash draws, one selection represented a cash draw in excess of the immediate cash needs of the Organization. The Organization originally calculated the cash draw based upon the number of participants served in the program instead of the amount of allowable costs incurred for the program. Management of the Organization identified the overdraw and refunded $1,027,988 to the grantor within a month of the initial draw, which represents the amount drawn in excess of expenditures incurred. Cause The Organization did not have internal controls in place to ensure that the cash drawn was limited to the minimum amount needed for immediate cash needs of the program. Effect The Organization withdrew $1,027,988 in excess of immediate cash needs for the program and refunded the balance to the grantor after the error was identified within a month of the excess draw. Questioned Costs Not applicable. Repeat Finding Not a repeat finding. Recommendation We recommend the Organization implement internal controls to ensure that cash draws represent the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.