Audit 322698

FY End
2023-12-31
Total Expended
$1.33M
Findings
2
Programs
4
Year: 2023 Accepted: 2024-09-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
499846 2023-001 - Yes L
1076288 2023-001 - Yes L

Contacts

Name Title Type
DFAYT2TQL9G4 Lisa Mazique Auditee
5045243484 Sean M. Bruno Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - General Accounting Policies: The financial statements are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America and in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and the Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The auditee did not electet to use the ten percent (10%) de minimis indirect cost rate. Central City Economic Opportunity Corporation (CCEOC) was organized to promote and develop economic opportunity to those in need of increased economic opportunity; to promote the education and welfare of the people of the community; and to form special interest groups as it deems necessary to solve special problems of the community. A summary of the significant accounting policies consistently applied in the preparation of the accompanying financial statements follows: Basis of Accounting The financial statements of CCEOC are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America and in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Title: Note 2 - Major Federal Programs Accounting Policies: The financial statements are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America and in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and the Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The auditee did not electet to use the ten percent (10%) de minimis indirect cost rate. CCEOC’s major federal financial assistance programs for the year ended December 31, 2023 was determined based on guidelines established by the Uniform Guidance. The major program for the year ended December 31, 2023 was the Head Start/Early Head Start program.
Title: Note 3 - Sub-Recipients Accounting Policies: The financial statements are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America and in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and the Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The auditee did not electet to use the ten percent (10%) de minimis indirect cost rate. CCEOC did not disburse any federal funds to sub-recipients during the year ended December 31, 2023.
Title: Note 4 - Indirect Cost Rate Accounting Policies: The financial statements are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America and in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and the Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The auditee did not electet to use the ten percent (10%) de minimis indirect cost rate. CCEOC has not elected to use the ten percent (10%) de minimis indirect cost rate.
Title: Note 5 - Subsequent Events Accounting Policies: The financial statements are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America and in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and the Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The auditee did not electet to use the ten percent (10%) de minimis indirect cost rate. CCEOC is required to evaluate events or transactions that may have occurred after the statement of financial position date for potential recognition or disclosure in the financial statements. CCEOC performed such an evaluation through September 23, 2024, the date which financial statements were available to be issued, and noted no subsequent events or transactions that occurred after the statement of financial position date that required recognition or disclosure.

Finding Details

Audit Finding Reference Number 2023 – 001 – Late Submission of Audit Report Federal Program and Specific Federal Award Identification CFDA Title and Number 93.600 Head Start Program Federal Award Year December 31, 2023 Federal Agency U.S. Department of Health and Human Services Pass-Through Entity Not Applicable Criteria Pursuant to the requirement of Louisiana Status R.S. 24:513 A. (5)(a)(i), annual financial reports shall be completed within six (6) months of the close of an entity’s fiscal year. Conditions and Contexts The December 31, 2023 audit report was not submitted within the prescribed time frame as required by federal regulations. The audit report was outstanding beyond the six (6) months pursual to the Louisiana state requirements. Cause Management failed to ensure the audit report was issued within the prescribed time frame. Questioned Costs For purposes of this condition, I have no questioned cost. Effect CCEOC has not complied with the audit requirement of Louisiana Status R.S. 24:513 A. 95)(a)(i).   Repeat Finding Yes. See 2022-001. Recommendation I recommend that management of CCEOC take steps to ensure that the Single Audit is submitted within the prescribed deadlines. Management’s Response CCEOC lost its full-time accountant due to budget cuts and has hired an accounting clerk. Voluminous amounts of documents were required for the 2023 audit, creating a number of challenges with timely collection and review. CCEOC is working to streamline accounting systems and processes.
Audit Finding Reference Number 2023 – 001 – Late Submission of Audit Report Federal Program and Specific Federal Award Identification CFDA Title and Number 93.600 Head Start Program Federal Award Year December 31, 2023 Federal Agency U.S. Department of Health and Human Services Pass-Through Entity Not Applicable Criteria Pursuant to the requirement of Louisiana Status R.S. 24:513 A. (5)(a)(i), annual financial reports shall be completed within six (6) months of the close of an entity’s fiscal year. Conditions and Contexts The December 31, 2023 audit report was not submitted within the prescribed time frame as required by federal regulations. The audit report was outstanding beyond the six (6) months pursual to the Louisiana state requirements. Cause Management failed to ensure the audit report was issued within the prescribed time frame. Questioned Costs For purposes of this condition, I have no questioned cost. Effect CCEOC has not complied with the audit requirement of Louisiana Status R.S. 24:513 A. 95)(a)(i).   Repeat Finding Yes. See 2022-001. Recommendation I recommend that management of CCEOC take steps to ensure that the Single Audit is submitted within the prescribed deadlines. Management’s Response CCEOC lost its full-time accountant due to budget cuts and has hired an accounting clerk. Voluminous amounts of documents were required for the 2023 audit, creating a number of challenges with timely collection and review. CCEOC is working to streamline accounting systems and processes.